A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
ABI (Automated Broker Interface):
An integral part of the Automated Commercial System (ACS), ABI is the means by which brokers or importers transmit entry and release data to the U.S. Customs and Border Protection (CBP).
ACH (Automated Clearinghouse):
An electronic payment program that allows ABI filers to pay CBP duties, taxes, and fees with one electronic transaction
ACS (Automated Commercial System):
Automated Commercial System. The system used by CBP to track, control, and process all commercial goods imported into the United States.
ADD/CVD:
Antidumping/Countervailing Duty
AMS:
Automated Manifest System for air and ocean carriers.
Activation:
Once a zone or subzone is approved by the FTZ Board, an application must be made to the local CBP office, with the concurrence of the FTZ grantee, to operate the zone/subzone site (or portion thereof) under FTZ procedures. This CBP process is known as activation generally includes steps such as background checks, a written procedures manual, posting a bond with CBP, as well as a review of the security of the site(s) and the inventory control methods.
Adjacency:
According to Section 400.21(b), general-purpose zone sites must be within 60 to 90 minutes driving time of the U.S. Customs and Border Protection Port of Entry.
Admit, Admission:
The physical arrival of goods into a zone in a specified zone status with the appropriate approvals of the zone grantee and CBP. The word “admission” is used instead of “entry” to avoid confusion with CBP entry processes under Parts 141-144 of the CBP Regulations.
Antidumping Duty:
Selling below home market prices or cost of manufacture with material injury to an U.S. manufacturer is call dumping. Antidumping duties are levied upon further importation of the merchandise.
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B
Bill of Lading:
A negotiable instrument that allows the carrier to transport a merchandise shipment from a shipper to a consignee
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C
CBP:
U.S. Customs and Border Protection of the Department of Homeland Security
CBPF - 3461:
CBP Form 3461, Entry/Immediate Delivery
CBPF - 214:
Customs form used to admit product into a Foreign-Trade Zone and/or designate a status
CBPF - 216:
Application for Foreign Trade Activity Permit, including manipulation, manufacture, exhibit, destroy and/or temporary removal
CBPF - 7512:
Transportation Entry Manifest of Goods Subject to CBP Inspection and Permit, used to move product in bond from port to port, depending on the class of entry used
CBPF - 349:
Harbor Maintenance Fee Quarterly Summary Reports, reports the HMF payable for ocean imports arriving at ports subject to the HMF for a given quarter
CBPF - 350:
Harbor Maintenance Fee Amended Quarterly Summary Report
Constructive Transfer:
A legal fiction that permits acceptance of a customs entry for merchandise in a zone before its physical transfer to the customs territory
Countervailing Duty:
Countervailing duty is levied when imported merchandise receives a bounty or grant when exported with material injury to an U.S. manufacturer.
Customs Territory:
The territory of the U.S. in which the general tariff laws of the U.S. apply U.S. Customs territory includes the states, the District of Columbia and Puerto Rico minus any areas within the boundaries of Foreign Trade Zones.
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D
Deactivation:
A previously activated general purpose zone or subzone site which no longer has local CBP authorization for activity under FTZ procedures.
Deleted:
A site or portion of a site that once held zone status, but has been removed from the zone through an administrative minor modification by the FTZ Board staff or an FTZ Board application process.
Direct Delivery:
A procedure for delivery of merchandise to a zone without prior application and approval on CBP Form 214; designed for low-risk, repetitive shipments whose ordering and timing are under the control of the operator. Approval to utilize direct delivery must be obtained from the Port Director.
District/Port Code:
A 4-position numeric identifier referring to each CBP district and port of entry.
Domestic origin/duty paid:
Describes merchandise that is mainly of domestic origin but also includes foreign-origin merchandise on which customs entry and duty payments have been made prior to admission to the zone site.
Domestic status:
Used synonymously with Domestic origin/duty paid (see above). Domestic status is the customs status for domestic origin and duty paid foreign origin zone merchandise.
Drawback:
Import duties or taxes repaid by a government, in whole or in part, when the imported goods are re-exported or used in the manufacture of exported goods.
Duty:
Ad valorem and/or specific rates assessed on the entered value of merchandise entering the United States and other countries.
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E
e214
Electronic filing of the CBPF-214 and other admission process information including ePTT, inbond arrival, and bill of lading concurrence and closure
ePTT
Electronic request of a Permit to Transfert (PTT) for movement of goods intra-port to the zone
Entry for Consumption:
The term that describes the general customs process of filing the appropriate CBP documents (including duty evaluation) that allows merchandise to be brought into the commerce of the U.S. With respect to foreign-trade zones, this process occurs when merchandise is shipped from the zone into U.S. commerce.
Entry Number:
The unique numeric identifier referencing the documentation filed with CBP to secure release and duty payment of imported merchandise.
Entry Summary:
CBP Form CBPF-7501. The entry summary describes and properly codes the imported merchandise. The entry filer has 10 working days after release of the merchandise to file an entry summary and pay whatever duties, fees, and taxes are due.
Exports:
The category of merchandise that is forwarded from zone sties to destinations in foreign countries.
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F
Filer or Filer Code:
A unique 3-position alphanumeric identifier assigned by Headquarters to ABI participants who file their own entries.
FIRMS Code:
Facilities Information and Resources Management System (FIRMS) code identifies the CBP facility where goods are located.
First In-First Out (FIFO):
An accounting method based on the assumption that older stock is disposed of first. This requires merchandise to the fungible without regard to the source (e.g., foreign or domestic) and a perpetual inventory system that identifies the merchandise by a unique identifier number to distinguish the goods from all other goods.
Foreign-First (FOFI):
An accounting method based on the assumption that foreign status merchandise is disposed of first. For example, if 100 domestic units and 100 foreign units are commingled in a zone, the first 100 units withdrawn would be identified as the foreign units.
Foreign-Trade Zone:
An isolated, enclosed and policed area operated as a public utility, in or adjacent to a port of entry, furnished with facilities for lading, unlading, handing, storing, manipulating, manufacturing and exhibiting goods and for reshipping them by land, water or air. Any merchandise, except that which is prohibited by law or other applicable regulations, may be brought into a zone without being subject to the customs laws of the United States and may be stored, exhibiting goods and for reshipping them by land, water or air. Any merchandise, except that which is prohibited by law or other applicable regulations, may be brought into a zone without being subject to the customs laws of the United States and may be stored, exhibiting goods and for reshipping them by land, water or air. Any merchandise, except that which is prohibited by law or other applicable regulations, may be brought into a zone without being subject to the customs laws of the United States and may be stored, exhibited, manufactured, mixed or manipulated in any manner as provided by applicable laws and regulations. Merchandise is subject to customs duties if it is sent into customs territory from the zone. It may escape such duties if it is exported from or destroyed in the zone.
Foreign-Trade Zones Board:
Established to carry out the provisions of the Foreign Trade Zone Act, the board consists of the Secretary of Commerce, the Secretary of the treasury and the Secretary of the Army.
Foreign Status:
Describes zone merchandise admitted to a zone site under CBP supervision that is normally of foreign origin. Such merchandise is admitted to zone sites without being subject to formal customs entry procedures and payment of duties, unless and until the foreign merchandise enters customs territory for domestic consumption. Foreign status merchandise is further categorized by CBP as either Non-Privileged Foreign or Privileged Foreign.
Forwarded:
The category of merchandise that is shipped from or forwarded from zone sites after release by CBP. This category includes merchandise that is forwarded to destinations in the U.S. market as well as merchandise that is exported--that is, forwarded to markets in foreign countries.
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G
General Order (GO):
Premises owned or leased by the U.S. Government and used for the storage of merchandise undergoing CBP examination or under seizure, or pending final release from CBP custody. Unclaimed merchandise stored in such premises is held under “general order”.
General-purpose Zone (GPZ):
A general-purpose zone 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 the permission of the Foreign-Trade Zones Board.
Grant of Authority:
A document issued by the Board which authorizes a zone grantee to establish, operate and maintain a zone project or a subzone, subject to limitations and conditions specified in the FTZ Board regulations (19 CFR Part 400), and 19 CFR Part 146. The authority to establish a zone includes the authority to operate and the responsibility to maintain it.
Grantee:
See Zone Grantee
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H
Harmonized Tariff Schedule of the United States (HTSUS):
Published by the U.S. International Trade Commission, the HTSUS is used in the classification of imported merchandise for rates of duty and statistical purposes.
HMF:
Harbor Maintenance Fee.
House Bill Number:
An alphabetic identifier that references an individual cargo shipment consolidated under a master bill of lading.
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I
Inactive:
A general-purpose zone or subzone site that has been approved by the FTZ Board, but is not “activated” with CBP. No activity under FTZ procedures is occurring at an inactive site.
In-bond:
The act of transporting a cargo shipment from a port of unlading to another port for entry or disposition under bond.
Inverted Tariff Structure:
Imported parts are dutiable at higher rates than the finished product into which they are incorporated.
ISO Code:
A 2-position alphabetic International Organization for Standardization (ISO) code for countries.
IT:
Immediate Transportation. In-bond movement transporting a cargo shipment from the port of unlading to the in-land port of destination under bond for entry or disposition.
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L
Lapse Provision:
A grant of authority for a zone or a subzone shall lapse unless the zone project, or subzone facility, is activated, pursuant to 19 CFR Part 146, and in operation not later than five years from the date of the Board order.
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M
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 and manufacturing is subject to interpretation and has a long history of case law.
Manufacturing:
Any activity involving the substantial transformation of a foreign article resulting in a new and different article having a different name, character and use.
Manufacturing ID or MID:
Manufacturer identification code constructed using specific segments of the manufacturer’s or shipper’s, name and address.
Merchandise Received:
Involves merchandise received into activated FTZ space under FTZ procedures by foreign-trade zones and subzone. It includes foreign status merchandise and domestic status merchandise.
MPF:
Merchandise Processing Fee
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N
NAFTA:
North American Free Trade Agreement - A preferential trade agreement among Canada, Mexico and the United States covering trade in goods, technical barriers to trade, government procurement, investment, services and related matters, intellectual property, administrative, institutional and other provisions. The objectives of NAFTA are to eliminate barriers to trade, facilitate the cross-border movement of goods and services, promote condications of fair competition, increase investment opportunities, provide adequate and effective protection and enforcement of intellectual property rights, create effective procedures for the implementation and application of this agreement and to establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of this agreement within the territories of the signatory countries.
Non-Privileged Foreign (NPF) Status:
One of two customs categories of foreign status merchandise (See 19 CFR 146.42). Such merchandise is evaluated based on its condition at the time it is shipped from the zone to the U.S. market and entered for consumption by CBP.
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O
Operator:
See Zone Operator
Operator’s Bond:
A bond submitted to CBP, on CBP Form 301, to assure compliance with the CBP Regulations set forth at 19 CFR.
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P
Port of Entry:
A port of entry in the United States, as defined by part 101 of the regulations of U.S. Customs and Border Protection (19 CFR part 101), or a user fee airport authorized under 19 U.S.C. 58b and listed in part 122 of the regulations of CBP (19 CFR part 122).
Port of Unlading:
The U.S. port of call in which cargo shipments are discharged.
Privileged Foreign (PF) Status:
One of two customs categories of foreign status merchandise (SEE 19 CFR 146.41). Such merchandise maintains its status based on it s condition when it was admitted to the zone. Thus, when the merchandise is shipped from the zone to the U.S. market and entered for consumption by CBP, it is evaluated based on the time-of-admission condition even though it may have undergone a transformation in the zone.
Processing:
When referring to zone activity, means, any activity involving a change in condition of merchandise, other than manufacturing, which results in a change in the customs classification of an article or in its eligibility for entry for consumption.
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Q
Quota:
Under a quota, only a certain amount of the designated merchandise can be entered into the commerce of the United States during a specific time period. Under an absolute quota, once the specified amount of merchandise has been entered, no more can be entered until the next opening. Under a tariff-rate quota, a certain amount may be entered at a reduced rate of duty. Once that amount has been entered, a higher rate of duty is charged.
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R
Reactivation:
A resumption of the activated status of an entire area that was previously deactivated without any change in the operator or the area boundaries, as opposed to an alteration (boundaries are different) or an activation (operator is different).
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S
SCAC:
Standard Carrier Alpha Code. The carrier identifier issued by the National Motor Freight Traffic Association (NMFTA).
SPI:
Special Program Indicator
Subzone:
A special-purpose type of ancillary zone authorized by the Board, through grantees of public zones, for operations by individual firms that cannot be accommodated within an existing zone, when it can be demonstrated that the activity will result in a significant public benefit and is in the public interest.
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T
Terminated:
If a general purpose zone or subzone is no longer needed, the grantee can request that the FTZ Board remove zone/subzone designation. Upon such action by the FTZ Board, the zone or subzone is then considered terminated.
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U
U.S. Bureau of Customs and Border Protection (CBP):
The unified border agency within the Department of Homeland Security (DHS) responsible for merchandise brought into the U.S.
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V
Vessel Code:
A unique alphanumeric code that positively identifies a specific vessel.
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W
Weekly Entry Procedures:
A CBP procedure that permits zones and subzones to file a weekly entry for the estimated removals of merchandise destined for domestic consumption during the following business week. Once the Port Director has approved the entry, the operator may ship the products all week up to the quantity estimate.
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Z
Zone:
A foreign-trade zone (see above) established under the provisions of the FTZ Act and regulations. The term also includes subzones, unless the context indicates otherwise.
Zone Grantee:
The corporate recipient of a grant of authority for a zone project. The term “grantee” means “zone grantee” unless otherwise indicated.
Zone Lot:
A collection of merchandise maintained under an inventory control method based on specific identification of merchandise admitted into a zone by lot and lot number (ZLN).
Zone Operator:
A corporation, partnership, or person that operates a zone or subzone under the terms of an agreement with the zone grantee or an intermediary entity, with the concurrence of the Port Director of CBP.
Zone Project:
The zone plan, including all of the zone and subzone sites that the Board authorizes a single grantee to establish.
Zone Restricted Status:
Merchandise in this status is to be exported or destroyed. Zone-restricted status merchandise can be entered into U.S. customs territory only if the FTZ Board finds that entry would be in the public interest.
Zone Schedule:
To be kept by the zone grantee, the zone schedule includes the internal rules and regulations of the zone, as well as a statement of the rates and fees charged to zone users.
Zone Status:
Merchandise can enter the zone in either domestic or foreign status. Domestic status can include foreign status goods where the duty has been paid and the goods entered for consumption. Foreign status includes privileged foreign, non-privileged foreign and zone-restricted status.
Zone User:
A party using a zone under agreement with the zone grantee or operator.
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