(1888PressRelease)
September 27, 2006 - Mobile, AL, September 26, 2006 -- “While the Foreign-Trade Zones Program allows FTZ Operators and Grantees to offer a unique set of services to their clients, the statutory and regulatory requirements associated with FTZ operations allow Operators and Grantees to set themselves apart by offering high-quality and compliant services.” This is the theme of a presentation given by Craig Pool, Senior Consultant and President of the Foreign-Trade Zone Corporation, at the September 2006 National Association of Foreign-Trade Zones (NAFTZ) Annual Conference in Orlando.
The Foreign-Trade Zones Program continues to attract U.S.-based companies that engage in international trade. As a result, Foreign-Trade Zone Operators and Grantees often have a growing list of clients with diverse FTZ-related needs.
Benefits
The FTZ Program provides for improved logistics and lower costs by allowing Operators and Grantees to provide users with FTZ benefits such as:
o Direct Delivery;
o Weekly Entry;
o Reduced Insurance Requirements;
o Reduced Theft;
o Reduced Paperwork.
Compliance
Within the FTZ environment, however, a company’s normal activities may constitute compliance violations that carry significant financial penalties, fines, or liquidated damages. Kitting, repair, and distruction can be done in a Foreign-Trade Zone, but not without the appropriate FTZ Board or CBP approval.
Without a careful analysis of all Zone-related activities, it is possible you have either processed or manufactured without authority or entered merchandise into the Commerce of the United States without a permit.
Quality of Services
The quality of the Operator or Grantee’s services directly affect the level of benefits available to the users of the Zone. Therefore, to provide maximum utility, value, and compliance in a Zone, it is essential that the Operator or Grantee have a firm grasp of the users’ activities.
Other Tips
o Establish a sound contractual relationship with Zone users;
o Look at all options for transporting merchandise within the Port of Entry;
o Conduct compliance reviews;
o Let people know that you are a Foreign-Trade Zone.
Craig Pool is a Senior Consultant with the Foreign-Trade Zone Corporation and serves as the firm’s President. He has worked in the area of Foreign-Trade Zones for 17 years in Zone administration, operations, and consulting. He also belongs to several national trade groups including the Trade Support Network (TSN) and the National Association of Foreign-Trade Zones (NAFTZ). The Foreign-Trade Zone Corporation is a service provider offering FTZ cost-benefit analyses, FTZ Board applications, training, assistance in designing, creating and managing Zone projects, and SmartZone® Foreign-Trade Zone management software.
Seth Morrison (sethmorrison ( @ ) ftzcorp dot com)
Foreign-Trade Zone Corporation
2062 Old Shell Road
Mobile, AL 36607
Phone : 251-445-1367
Fax : 251-445-1389
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