December 15, 2023

Permit to Transfer (PTT)

Permit to move merchandise in-bond from one location to another within the same port. Now generally filed electronically and referred to as an ePTT.
December 15, 2023

Operator’s Bond

An Activity Type 4 bond submitted electronically to CBP to assure compliance with CBP Operator responsibilities.
December 15, 2023

Operator

A corporation, partnership or person that operates a zone or subzone under the terms of an agreement with the Grantee. A Grantee may act as its own Operator. An Operator may also be a User, and in this case is referred to as a Operator/User.
December 15, 2023

Nonprivileged Foreign Status (NPF)

Status of zone merchandise not previously cleared by CBP which is appraised in the condition of the merchandise at the time it enters Customs territory. NPF status may be changed upon approval from CBP, provided the merchandise is still in the same condition as when admitted to the zone. While in the zone, NPF status merchandise can be manipulated, manufactured, […]
December 15, 2023

Manufacturing

CBP determines what constitutes manufacturing on a case-by-case basis, distinguishing it from other operations such as manipulation, processing, production and blending. The U.S. Foreign-Trade Zones Board has defined “Production” as any process that results in (1) a substantial transformation resulting in a change in the essential character of the merchandise, whether or not there is a change in the HTSUS […]
December 15, 2023

Manipulation

As defined in Section 562 of the Tariff Act, processing wherein merchandise is packed, unpacked, repacked, cleaned, sorted, graded or otherwise changed in condition. The precise distinction between manipulation, manufacturing and now production is subject to interpretation.
December 15, 2023

Manifest Discrepancy Report (MDR)

Free form letter with supporting documentation prepared by the carrier or Operator and submitted to U.S. Customs and Border Protection. Used to report quantity discrepancies found before or upon admission to zone.
December 15, 2023

Inverted Tariff Structure

Where imported parts are dutiable at higher rates than the finished product into which they are incorporated.
December 15, 2023

Grantee

A corporation to which the privilege of establishing, operating and maintaining a foreign-trade zone has been granted by the Foreign-Trade Zones Board. Grantee corporations must be either public corporations or private corporations organized for the purpose of establishing a zone project. Examples of public entities that might receive an FTZ grant include: a political subdivision (including a municipality), a public […]
December 15, 2023

General-Purpose Zone

A general-purpose zone (GPZ) is established for multiple activities by multiple Users. Storage, distribution, testing, repackaging and repair are some of the possible activities in a GPZ. Processing or manufacturing in a GPZ requires prior approval by the Foreign-Trade Zones Board.
December 15, 2023

E-Verify

Internet-based system used to confirm eligibility for employment in the United States. Foreign-trade zone operators are currently required to use E-Verify as part of their background investigation process for permanent and temporary employees within the activated area of a zone site or subzone.