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Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

11.111: Foreign-Trade Zones in the United States

Objectives: To help encourage domestic warehousing, manufacturing and processing activity. States and local communities use foreign-trade zones as part of their overall economic growth efforts to improve their international business service structure. In this way, FTZs contribute to the enhancement of their investment climate for commerce and industry.

PROGRAM AND AWARD FINANCIAL AND INFORMATION CONTACTS

ELIGIBILITY REQUIREMENTS FINANCIAL AND ADMINISTRATIVE INFO.

APPLICATION AND AWARD PROCESS INFORMATION CONTACTS

RELATED PROGRAMS ASSISTANCE CONSIDERATIONS

PROGRAM ACCOMPLISHMENTS POST ASSISTANCE REQUIREMENTS

11.111 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: Public and private corporations as defined by the Law, with the appropriate State enabling legislation.

Beneficiary Eligibility: Foreign Trade Zone's (FTZ) are required to operate under public utilities principles, providing access to zone procedures on a nondiscriminatory basis to businesses and manufacturers. Zone procedures are available at any of the operating FTZ's, subject to customs requirements, a review process to determine that manufacturing activity is in the public interest, and the specific requirements of the local zone project.

Credentials/Documentation: Applications contain: A cover letter, with exhibits, detailing corporation's eligibility to apply; type of authority requested; a site and facility description; project background; the need for a zone; the relationship of the zone project to the overall community economic development plans; and how the project will be operated and financed. When manufacturing activity is involved, the application must also contain information on the activity, including products and components, tariff rates, benefits to the operator, and public benefits (e.g., employment retention/creation).

11.111 APPLICATION AND AWARD PROCESS:

Preapplication Coordination: Draft applications are recommended. This program is excluded from coverage under E.O. 12372.

Application Procedure: Applications for zone authority are submitted by eligible applicants and investigated under the regulations of the FTZ Board. The Board (Secretaries of Commerce (Chairman), and Treasury) can approve or deny the application, or approve it with restrictions. Applications are processed for the Board by the FTZ Staff/Import Administration/International Trade Administration, U.S. Department of Commerce.

Award Procedure: Upon filing of an application, after a prefiling review, an examiner is appointed to investigate the proposal and make recommendations. Hearings are held in cases of new zones and public comments invited in all cases. When the Foreign-Trade Zones Board makes a decision an order is issued and published in the Federal Register.

Deadlines: Not applicable.

Range of Approval/Disapproval Time: Applications are usually acted upon within 10 to 12 months of filing.

Appeals: A negative decision can be appealed by reapplication to the FTZ Board when warranted by evidence and circumstance.

Renewals: Applicable when the Board places time constraints on the FTZs. In that event, a renewal application must be filed.

Criteria for Selecting Proposals: Not applicable.

Examples of Funded Projects: Not applicable.

Range and Average of Financial Assistance: Not applicable.

11.111 RELATED PROGRAMS:

None.

11.111 PROGRAM ACCOMPLISHMENTS:

The Board processes about 70 to 90 applications each year covering new general-purpose zones, sub zones, and zone expansions.

11.111 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency: INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE

Type of Assistance: Provision of Specialized Services.

Obligations: (Operations and administration) FY 99 $717,613; FY 00 est $789,166; and FY 01 est $850,000.

Budget Account Number: 13-1250-0-1-376.

Authorization: Foreign-Trade Zones (FTZ) Act of 1934, 48 Stat. 98-1003, 19 U.S.C. 81a-81u, as amended, Public Law 81-566, 64 Stat. 246; Public Law 85-791, 72 Stat. 945; Public Law 91-271, 84 Stat. 292; Public Law 96-609, 94 Stat. 3561 Section 231; Public Law 98-573, 98 Stat. 142 and 299; Public Law 99-386, 100 Stat. 823; Public Law 99-514; Public Law 100-418, 102 Stat. 1300; Public Law 100-647, 102 Stat. 3808; Public Law 100-449, 102 Stat. 1863; Public Law 101-382, 104 Stat. 706 and 710.

Regulations, Guidelines, and Literature: Commerce Regulations, 15 CFR, Part 400 (15 CFR 400).

11.111 INFO CONTACTS:

Regional or Local Office: Commerce District Offices.

Headquarters Office: Office of the Executive Secretary, Foreign-Trade Zones Board, 14th and Pennsylvania Ave., NW., Room 4008, Washington, DC 20230. Inquiries should be directed to Dennis Puccinelli, Acting Executive Secretary, Foreign-Trade Zones Board. Phone: (202) 482-2862.

(See Appendix IV for more contact info.)

11.111 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: Not applicable.

Length and Time Phasing of Assistance: Not applicable.

Uses and Use Restrictions: Zone procedures help firms reduce customs costs and help improve a domestic operation's international competitiveness. The procedures are available at facilities designated as foreign trade zones and sub zones under the sponsorship of local public and quasi-public corporations.

11.111 POST ASSISTANCE REQUIREMENTS:

Reports: Annual reports on FTZ operations are submitted by grantees.

Audits: FTZ operations are supervised and audited by the U.S. Customs Service and monitored by the Foreign-Trade Zones Board in terms of restrictions imposed by board and the general public interest mandate of the FTZ Act.

Records: Each grantee is required to keep records pursuant to the FTZ Board's (15 CFR 400), and Customs regulations (19 CFR 146).