global logistics and the foreign-trade zone program steve schellenberg ims worldwide 281 554 9099...
TRANSCRIPT
![Page 1: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/1.jpg)
![Page 2: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/2.jpg)
Global Logistics and the Foreign-Trade Zone Program
Steve Schellenberg
IMS Worldwide
281 554 9099
![Page 3: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/3.jpg)
Hong Kong, China
Singapore
Prince Rupert, Canada
CharlestonNorfolk
New York
Los Angeles
Colima, MexicoEnsenada, Mexico
Global Trade Routes
![Page 4: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/4.jpg)
![Page 5: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/5.jpg)
![Page 6: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/6.jpg)
Source: Individual Port Websites
Port of Entry2012 TEU Volume
2012 TEU Growth over 2011
LA/LB 14,123,376 1.70%
NY/NJ 5,529,211 .30%
Savannah 2,966,221 0.7%
Oakland 2,344,424 0.1%
Houston 1,922,479 3.0%
Hampton Roads 2,105,887 8.92%
Seattle 1,869,492 -9.2%
Tacoma 1,711,133 8.62%
Charleston 1,514,585 9.6%
Port TEU Volumes
![Page 7: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/7.jpg)
Seattle/Tacoma
Los Angeles / Long Beach
Lazaro Cardenas
Oakland
Houston
Savannah / Charleston
NorfolkColumbus
Prince Rupert
Mexico City
Intermodal Routes to Major Inland Ports
Dallas/FW
Atlanta
Memphis
Chicago
Kansas City
NY/NJ
Cent. PA
Jacksonville
Vancouver
![Page 8: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/8.jpg)
![Page 9: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/9.jpg)
What Is an FTZ? An area inside the United States that is
designated as being outside Customs Territory. Where items are brought into the Zone
duty free.
Where Customs duty is determined when the merchandise leaves the Zone.
![Page 10: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/10.jpg)
What is a Zone Site?
An Industrial Park
An Industrial Development Inside a Port or Airport
A Company’s Facility
![Page 11: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/11.jpg)
What Can I Do in an FTZ? Distribute Store Test and Inspect Repack Assemble Repair Manufacture
![Page 12: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/12.jpg)
Duty Deferral
Duty is not paid when an item enters the Zone An item enters the Zone in January
Duty is paid when the item leaves the Zone The item leaves the Zone in April
Four months of duty deferral
![Page 13: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/13.jpg)
Duty Elimination
Testing and inspection is conducted in the Zone duty free All rejected and destroyed items are duty
free Exports are duty free
All items exported from the Zone are duty free
![Page 14: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/14.jpg)
Duty Reduction
For manufacturing Zones The Zone allows a company to choose the
lowest duty rate associated with its components and finished product(s)
A company imports 3 components A has a duty rate of 10% B has a duty rate of 9% C has a duty rate of 8%
![Page 15: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/15.jpg)
Duty Reduction The company’s finished product has a 5%
duty rate
The company will pay for the value of the components at the finished product rate A from 10% to 5%
B from 9% to 5%
C from 8% to 5%
This reduction means a savings of 5% to 3%
![Page 16: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/16.jpg)
Merchandise ProcessingFee Savings Each entry into the United States is
assessed a Merchandise Processing Fee (MPF)(valorem fee of 0.3464 percent)
Foreign-Trade Zones are allowed one entry per week
The MPF is collected on that one entry
![Page 17: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/17.jpg)
How to Become an FTZ? Application
For manufacturing For land associated with the site
Activation Approval by Customs
![Page 18: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/18.jpg)
FTZ Activation Package Background Investigation Concurrence Letter from Grantee Procedures Manual Security Survey Blue Print Drawing of Activated Area Operator’s Bond
![Page 19: Global Logistics and the Foreign-Trade Zone Program Steve Schellenberg IMS Worldwide 281 554 9099 s.schellenberg@imsw.com](https://reader034.vdocument.in/reader034/viewer/2022050714/56649cc55503460f9498f792/html5/thumbnails/19.jpg)
FTZ Operations SOP Development Operational Training Audit Program Zone Administrative Training Inventory Control and Record Keeping
System