The CBP notice [PDF 205 KB] explains that under the program, “liberalized procedures” will be allowed for certain zone activities. For example, zone operators approved for participation in the test will not be required to submit a CBP Form 216, Application for Foreign-Trade Zones Activity Permit, for the manipulation, manufacture, or exhibition of merchandise within a foreign trade zone when the activity has been previously approved in that zone's grant of authority by the FTZ Board.
Also, zone operators approved for participation in the test will have the option of allowing duty-paid merchandise that has been entered for consumption to remain in an activated zone area for up to 90 calendar days after CBP releases the merchandise—provided that the merchandise remains segregated, does not undergo further manufacturing, and is accurately recorded in the inventory control and recordkeeping system within five business days of release.
Applications, test program start date
A zone operator interested in voluntary participation in the test program must submit an email to CBP establishing that the eligibility criteria for participation in the test are satisfied by July 8, 2013.
CBP will notify interested parties of their test participation status within 10 calendar days of receipt of the email requesting participation in the test.
The initial phase of the FTZ test will begin July 17, 2013, and will run for approximately two years. CBP will begin an evaluation of this test approximately 90 days after the test's commencement.
For more information, contact a professional with KPMG’s Trade & Customs practice:
John L. McLoughlin
Todd R. Smith
Luis A. Abad
Or your local KPMG Trade & Customs professional.