US (United States) Code. Title 19. Chapter 1A: Foreign trade zones

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Customs duties

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19 USC CHAPTER 1A - FOREIGN TRADE ZONES 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

.

-HEAD-

CHAPTER 1A - FOREIGN TRADE ZONES

-MISC1-

Sec.

81a. Definitions.

81b. Establishment of zones.

(a) Board authorization to grant zones.

(b) Number of zones per port of entry.

(c) Preference to public corporations.

(d) Ownership of harbor facilities by State.

81c. Exemption from customs laws of merchandise brought into

foreign trade zone.

(a) Handling of merchandise in zone; shipment of

foreign merchandise into customs territory;

appraisal; reshipment to zone.

(b) Applicability to bicycle component parts.

(c) Articles manufactured or produced from denatured

distilled spirits withdrawn free of tax from

distilled spirits plant; products unfit for

beverage purposes.

(d) Foreign trade zones.

(e) Production equipment.

81d. Customs officers and guards.

81e. Vessels entering or leaving zone; coastwise trade.

81f. Application for establishment and expansion of zone.

(a) Application for establishment; requirements.

(b) Amendment of application; expansion of zone.

81g. Granting of application.

81h. Rules and regulations.

81i. Cooperation of Board with other agencies.

81j. Cooperation of other agencies with Board.

81k. Agreements as to use of property.

81l. Facilities to be provided and maintained.

81m. Permission to others to use zone.

81n. Operation of zone as public utility; cost of customs service.

81o. Residents of zone.

(a) Persons allowed to reside in zone.

(b) Rules and regulations for employees entering and

leaving zone.

(c) Exclusion from zone of goods or process of

treatment.

(d) Retail trade within zone.

(e) Exemption from State and local ad valorem

taxation of tangible personal property.

81p. Accounts and recordkeeping.

(a) Manner of keeping accounts.

(b) Annual report by grantee.

(c) Report to Congress.

81q. Transfer of grant.

81r. Revocation of grants.

(a) Procedure for revocation.

(b) Attendance of witnesses and production of

evidence.

(c) Nature of order of revocation; appeal.

81s. Offenses.

81t. Separability.

81u. Right to alter, amend, or repeal chapter.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 58c, 1484, 3332 of this

title; title 6 section 212; title 25 section 941m; title 49 section

70117.

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19 USC Sec. 81a 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81a. Definitions

-STATUTE-

When used in this chapter -

(a) The term ''Secretary'' means the Secretary of Commerce;

(b) The term ''Board'' means the Board which is established to

carry out the provisions of this chapter. The Board shall consist

of the Secretary of Commerce, who shall be chairman and executive

officer of the Board, and the Secretary of the Treasury;

(c) The term ''State'' includes any State, the District of

Columbia, and Puerto Rico;

(d) The term ''corporation'' means a public corporation and a

private corporation, as defined in this chapter;

(e) The term ''public corporation'' means a State, political

subdivision thereof, a municipality, a public agency of a State,

political subdivision thereof, or municipality, or a corporate

municipal instrumentality of one or more States;

(f) The term ''private corporation'' means any corporation (other

than a public corporation) which is organized for the purpose of

establishing, operating, and maintaining a foreign-trade zone and

which is chartered under special Act enacted after June 18, 1934,

of the State or States within which it is to operate such zone;

(g) The term ''applicant'' means a corporation applying for the

right to establish, operate, and maintain a foreign-trade zone;

(h) The term ''grantee'' means a corporation to which the

privilege of establishing, operating, and maintaining a

foreign-trade zone has been granted;

(i) The term ''zone'' means a ''foreign-trade zone'' as provided

in this chapter.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 1, 48 Stat. 998; Pub. L. 104-201,

div. A, title IX, Sec. 910, Sept. 23, 1996, 110 Stat. 2621.)

-MISC1-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-201, Sec. 910(1), substituted

''and the Secretary of the Treasury'' for ''the Secretary of the

Treasury, and the Secretary of War''.

Subsec. (c). Pub. L. 104-201, Sec. 910(2), struck out ''Alaska,

Hawaii,'' after ''Columbia,''.

SHORT TITLE

This chapter is popularly known as the ''Foreign Trade Zones

Act''.

FLOOR STOCKS TAX TREATMENT OF ARTICLES IN FOREIGN TRADE ZONES

Notwithstanding this chapter, articles located in a foreign trade

zone on the effective date of increases in tax under specific

amendments by Pub. L. 101-508 subject to floor stocks taxes under

certain circumstances, see section 11218 of Pub. L. 101-508, set

out as a note under section 5001 of Title 26, Internal Revenue

Code.

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19 USC Sec. 81b 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81b. Establishment of zones

-STATUTE-

(a) Board authorization to grant zones

The Board is authorized, subject to the conditions and

restrictions of this chapter and of the rules and regulations made

thereunder, upon application as hereinafter provided, to grant to

corporations the privilege of establishing, operating, and

maintaining foreign-trade zones in or adjacent to ports of entry

under the jurisdiction of the United States.

(b) Number of zones per port of entry

Each port of entry shall be entitled to at least one zone, but

when a port of entry is located within the confines of more than

one State such port of entry shall be entitled to a zone in each of

such States, and when two cities separated by water are embraced in

one port of entry, a zone may be authorized in each of said cities

or in territory adjacent thereto. Zones in addition to those to

which a port of entry is entitled shall be authorized only if the

Board finds that existing or authorized zones will not adequately

serve the convenience of commerce.

(c) Preference to public corporations

In granting applications preference shall be given to public

corporations.

(d) Ownership of harbor facilities by State

In case of any State in which harbor facilities of any port of

entry are owned and controlled by the State and in which State

harbor facilities of any other port of entry are owned and

controlled by a municipality, the Board shall not grant an

application by any public corporation for the establishment of any

zone in such State, unless such application has been authorized by

an Act of the legislature of such State (enacted after June 18,

1934).

-SOURCE-

(June 18, 1934, ch. 590, Sec. 2, 48 Stat. 999.)

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 81i of this title.

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19 USC Sec. 81c 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81c. Exemption from customs laws of merchandise brought into

foreign trade zone

-STATUTE-

(a) Handling of merchandise in zone; shipment of foreign

merchandise into customs territory; appraisal; reshipment to

zone

Foreign and domestic merchandise of every description, except

such as is prohibited by law, may, without being subject to the

customs laws of the United States, except as otherwise provided in

this chapter, be brought into a zone and may be stored, sold,

exhibited, broken up, repacked, assembled, distributed, sorted,

graded, cleaned, mixed with foreign or domestic merchandise, or

otherwise manipulated, or be manufactured except as otherwise

provided in this chapter, and be exported, destroyed, or sent into

customs territory of the United States therefrom, in the original

package or otherwise; but when foreign merchandise is so sent from

a zone into customs territory of the United States it shall be

subject to the laws and regulations of the United States affecting

imported merchandise: Provided, That whenever the privilege shall

be requested and there has been no manipulation or manufacture

effecting a change in tariff classification, the appropriate

customs officer shall take under supervision any lot or part of a

lot of foreign merchandise in a zone, cause it to be appraised and

taxes determined and duties liquidated thereon. Merchandise so

taken under supervision may be stored, manipulated, or manufactured

under the supervision and regulations prescribed by the Secretary

of the Treasury, and whether mixed or manufactured with domestic

merchandise or not may, under regulations prescribed by the

Secretary of the Treasury, be exported or destroyed, or may be sent

into customs territory upon the payment of such liquidated duties

and determined taxes thereon. If merchandise so taken under

supervision has been manipulated or manufactured, such duties and

taxes shall be payable on the quantity of such foreign merchandise

used in the manipulation or manufacture of the entered article.

Allowance shall be made for recoverable and irrecoverable waste;

and if recoverable waste is sent into customs territory, it shall

be dutiable and taxable in its condition and quantity and at its

weight at the time of entry. Where two or more products result

from the manipulation or manufacture of merchandise in a zone the

liquidated duties and determined taxes shall be distributed to the

several products in accordance with their relative value at the

time of separation with due allowance for waste as provided for

above: Provided further, That subject to such regulations

respecting identity and the safeguarding of the revenue as the

Secretary of the Treasury may deem necessary, articles, the growth,

product, or manufacture of the United States, on which all

internal-revenue taxes have been paid, if subject thereto, and

articles previously imported on which duty and/or tax has been

paid, or which have been admitted free of duty and tax, may be

taken into a zone from the customs territory of the United States,

placed under the supervision of the appropriate customs officer,

and whether or not they have been combined with or made part, while

in such zone, of other articles, may be brought back thereto free

of quotas, duty, or tax: Provided further, That if in the opinion

of the Secretary of the Treasury their identity has been lost, such

articles not entitled to free entry by reason of noncompliance with

the requirements made hereunder by the Secretary of the Treasury

shall be treated when they reenter customs territory of the United

States as foreign merchandise under the provisions of the tariff

and internal-revenue laws in force at that time: Provided further,

That under the rules and regulations of the controlling Federal

agencies, articles which have been taken into a zone from customs

territory for the sole purpose of exportation, destruction (except

destruction of distilled spirits, wines, and fermented malt

liquors), or storage shall be considered to be exported for the

purpose of -

(1) the draw-back, warehousing, and bonding, or any other

provisions of the Tariff Act of 1930, as amended, and the

regulations thereunder; and

(2) the statutes and bonds exacted for the payment of

draw-back, refund, or exemption from liability for

internal-revenue taxes and for the purposes of the

internal-revenue laws generally and the regulations thereunder.

Such a transfer may also be considered an exportation for the

purposes of other Federal laws insofar as Federal agencies charged

with the enforcement of those laws deem it advisable. Such

articles may not be returned to customs territory for domestic

consumption except where the Foreign-Trade Zones Board deems such

return to be in the public interest, in which event the articles

shall be subject to the provisions of paragraph 1615(f) of section

1201 of this title: Provided further, That no operation involving

any foreign or domestic merchandise brought into a zone which

operation would be subject to any provision or provisions of

section 1807, chapter 15, chapter 16, chapter 17, chapter 21,

chapter 23, chapter 24, chapter 25, chapter 26, or chapter 32 of

the Internal Revenue Code if performed in customs territory, or

involving the manufacture of any article provided for in paragraphs

367 or 368 of section 1001 of this title, shall be permitted in a

zone except those operations (other than rectification of distilled

spirits and wines, or the manufacture or production of alcoholic

products unfit for beverage purposes) which were permissible under

this chapter prior to July 1, 1949: Provided further, That articles

produced or manufactured in a zone and exported therefrom shall on

subsequent importation into the customs territory of the United

States be subject to the import laws applicable to like articles

manufactured in a foreign country, except that articles produced or

manufactured in a zone exclusively with the use of domestic

merchandise, the identity of which has been maintained in

accordance with the second proviso of this section may, on such

importation, be entered as American goods returned: Provided,

further, That no merchandise that consists of goods subject to

NAFTA drawback, as defined in section 3333(a) of this title, that

is manufactured or otherwise changed in condition shall be exported

to a NAFTA country, as defined in section 3301(4) of this title,

without an assessment of a duty on the merchandise in its condition

and quantity, and at its weight, at the time of its exportation (or

if the privilege in the first proviso to this subsection was

requested, an assessment of a duty on the merchandise in its

condition and quantity, and at its weight, at the time of its

admission into the zone) and the payment of the assessed duty

before the 61st day after the date of exportation of the article,

except that upon the presentation, before such 61st day, of

satisfactory evidence of the amount of any customs duties paid or

owed to the NAFTA country on the article, the customs duty may be

waived or reduced (subject to section 508(b)(2)(B) of the Tariff

Act of 1930 (19 U.S.C. 1508(b)(2)(B))) in an amount that does not

exceed the lesser of (1) the total amount of customs duties paid or

owed on the merchandise on importation into the United States, or

(2) the total amount of customs duties paid on the article to the

NAFTA country: Provided, further, That, if Canada ceases to be a

NAFTA country and the suspension of the operation of the United

States-Canada Free-Trade Agreement thereafter terminates, with the

exception of drawback eligible goods under section 204(a) of the

United States-Canada Free-Trade Agreement Implementation Act of

1988, no article manufactured or otherwise changed in condition

(except a change by cleaning, testing or repacking) shall be

exported to Canada during the period such Agreement is in operation

without the payment of a duty that shall be payable on the article

in its condition and quantity, and at its weight, at the time of

its exportation to Canada unless the privilege in the first proviso

to this subsection was requested.

(b) Applicability to bicycle component parts

The exemption from the customs laws of the United States provided

under subsection (a) of this section shall not be available on or

before December 31, 1992, to bicycle component parts unless such

parts are reexported from the United States, whether in the

original package, as components of a completely assembled bicycle,

or otherwise.

(c) Articles manufactured or produced from denatured distilled

spirits withdrawn free of tax from distilled spirits plant;

products unfit for beverage purposes

(1) Notwithstanding the provisions of the fifth proviso of

subsection (a) of this section, any article (within the meaning of

section 5002(a)(14) of title 26) may be manufactured or produced

from denatured distilled spirits which have been withdrawn free of

tax from a distilled spirits plant (within the meaning of section

5002(a)(1) of title 26), and articles thereof, in a zone.

(2) Notwithstanding the provisions of the fifth proviso of

subsection (a) of this section, distilled spirits which have been

removed from a distilled spirits plant (as defined in section

5002(a)(1) of title 26) upon payment or determination of tax may be

used in the manufacture or production of medicines, medicinal

preparation, food products, flavors, or flavoring extracts, which

are unfit for beverage purposes, in a zone. Such products will be

eligible for drawback under the internal revenue laws under the

same conditions applicable to similar manufacturing or production

operations occurring in customs territory.

(d) Foreign trade zones

In regard to the calculation of relative values in the operations

of petroleum refineries in a foreign trade zone, the time of

separation is defined as the entire manufacturing period. The

price of products required for computing relative values shall be

the average per unit value of each product for the manufacturing

period. Definition and attribution of products to feedstocks for

petroleum manufacturing may be either in accordance with Industry

Standards of Potential Production on a Practical Operating Basis as

verified and adopted by the Secretary of the Treasury (known as

producibility) or such other inventory control method as approved

by the Secretary of the Treasury that protects the revenue.

(e) Production equipment

(1) In general

Notwithstanding any other provision of law, if all applicable

customs laws are complied with (except as otherwise provided in

this subsection), merchandise which is admitted into a foreign

trade zone for use within such zone as production equipment or as

parts for such equipment, shall not be subject to duty until such

merchandise is completely assembled, installed, tested, and used

in the production for which it was admitted.

(2) Admission procedures

The person who admits the merchandise described in paragraph

(1) into the zone shall, at the time of such admission, certify

to the Customs Service that the merchandise is admitted into the

zone pursuant to this subsection for use within the zone as

production equipment or as parts for such equipment and that the

merchandise will be entered and estimated duties deposited when

use of the merchandise in production begins.

(3) Entry procedures

At the time use of the merchandise in production begins, the

merchandise shall be entered, as provided for in section 484 of

the Tariff Act of 1930 (19 U.S.C. 1484), and estimated duties

shall be deposited with the Customs Service. The merchandise

shall be subject to tariff classification according to its

character, condition, and quantity, and at the rate of duty

applicable, at the time use of the merchandise in production

begins.

(4) Foreign trade zone

For purposes of this subsection, the term ''foreign trade

zone'' includes a subzone.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 3, 48 Stat. 999; June 17, 1950, ch.

296, Sec. 1, 64 Stat. 246; Pub. L. 91-271, title III, Sec. 309,

June 2, 1970, 84 Stat. 292; Pub. L. 98-573, title II, Sec.

231(a)(2), Oct. 30, 1984, 98 Stat. 2990; Pub. L. 99-514, title

XVIII, Sec. 1894, Oct. 22, 1986, 100 Stat. 2931; Pub. L. 100-418,

title I, Sec. 1783(f), Aug. 23, 1988, 102 Stat. 1300; Pub. L.

100-449, title II, Sec. 204(c)(5), Sept. 28, 1988, 102 Stat. 1863;

Pub. L. 100-647, title IX, Sec. 9002, Nov. 10, 1988, 102 Stat.

3808; Pub. L. 101-382, title III, Sec. 481, 484F, Aug. 20, 1990,

104 Stat. 706, 710; Pub. L. 103-182, title II, Sec. 203(b)(5), Dec.

8, 1993, 107 Stat. 2091; Pub. L. 104-295, Sec. 31(a), Oct. 11,

1996, 110 Stat. 3536; Pub. L. 106-36, title I, Sec. 1001(b)(2),

June 25, 1999, 113 Stat. 131.)

-REFTEXT-

REFERENCES IN TEXT

The customs laws, referred to in text, are classified generally

to this title.

The Tariff Act of 1930, as amended, referred to in subsec.

(a)(1), is act June 17, 1930, ch. 497, 46 Stat. 590, as amended,

which is classified generally to chapter 4 (Sec. 1202 et seq.) of

this title. For complete classification of this Act to the Code,

see Tables.

Sections 1001 and 1201 of this title, referred to in subsec. (a),

which comprised the dutiable and free lists for articles imported

into the United States, were repealed by Pub. L. 87-456, title I,

Sec. 101(a), May 24, 1962, 76 Stat. 72, which act also revised the

Tariff Schedules of the United States. The Tariff Schedules of the

United States were replaced by the Harmonized Tariff Schedule of

the United States which is not set out in the Code. See Publication

of Harmonized Tariff Schedule note set out under section 1202 of

this title.

References in subsec. (a) to section and chapters of the Internal

Revenue Code are references to section and chapters of the Internal

Revenue Code, 1939, which was repealed by section 7851 of Title 26,

I.R.C. 1954. The Internal Revenue Code of 1954 was redesignated the

Internal Revenue Code of 1986 by Pub. L. 99-514, Sec. 2, Oct. 22,

1986, 100 Stat. 2095. Corresponding sections of I.R.C. 1986 to

section and chapters of I.R.C. 1939 referred to in the text are set

out below. For provision deeming a reference in other laws to a

provision of I.R.C. 1939, also as a reference to corresponding

provision of I.R.C. 1986, see section 7852(b) of Title 26, I.R.C.

1986.

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I.R.C. 1939 I.R.C. 1986

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Sec. 1807 Omitted

Chapter 15 Sec. 5701 et seq.

Chapter 16 Sec. 4591 et seq., Sec. 4811 et

seq.

Chapter 17 Sec. 4831 et seq.

Chapter 21 Omitted

Chapter 23 Sec. 4701 et seq.

Chapter 24 Sec. 4801 et seq.

Chapter 25 Sec. 4181, 4182, and 5811 et seq.

Chapter 26 Sec. 5001 et seq.

Chapter 32 Sec. 4501 et seq.

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Section 204 of the United States-Canada Free-Trade Agreement

Implementation Act of 1988, referred to in subsec. (a), is section

204 of Pub. L. 100-449, which is set out in a note under section

2112 of this title.

The internal revenue laws, referred to in subsec. (c)(2), are

classified generally to Title 26, Internal Revenue Code.

-MISC2-

AMENDMENTS

1999 - Subsec. (a). Pub. L. 106-36 struck out second period at

end of last sentence.

1996 - Subsec. (e). Pub. L. 104-295 added subsec. (e).

1993 - Subsec. (a). Pub. L. 103-182, in provisions following par.

(2), inserted second proviso relating to goods subject to NAFTA

drawback, and in last proviso inserted '', if Canada ceases to be a

NAFTA country and the suspension of the operation of the United

States-Canada Free-Trade Agreement thereafter terminates,'' after

''That'' and substituted ''during the period such Agreement is in

operation'' for ''on or after January 1, 1994, or such later date

as may be proclaimed by the President under section 204(b)(2)(B) of

such Act of 1988,''.

1990 - Subsec. (b). Pub. L. 101-382, Sec. 481, substituted ''on

or before December 31, 1992'' for ''before January 1, 1991''.

Subsec. (c). Pub. L. 101-382, Sec. 484F, designated existing

provisions as par. (1), struck out ''domestic'' before ''denatured

distilled'', inserted provisions relating to withdrawal free of tax

from a distilled spirits plant, and added par. (2).

1988 - Subsec. (a). Pub. L. 100-449 inserted provision directing

that, ''with the exception of drawback eligible goods under section

204(a) of the United States-Canada Free-Trade Agreement

Implementation Act of 1988, no article manufactured or otherwise

changed in condition (except a change by cleaning, testing or

repacking) shall be exported to Canada on or after January 1, 1994,

or such later date as may be proclaimed by the President under

section 204(b)(2)(B) of such Act of 1988, without the payment of a

duty that shall be payable on the article in its condition and

quantity, and at its weight, at the time of its exportation to

Canada unless the privilege in the first proviso to this subsection

was requested.''

Subsec. (b). Pub. L. 100-418 substituted ''January 1, 1991'' for

''June 30, 1986''.

Subsec. (d). Pub. L. 100-647 added subsec. (d).

1986 - Subsec. (c). Pub. L. 99-514 added subsec. (c).

1984 - Subsec. (a). Pub. L. 98-573 designated existing provisions

as subsec. (a), redesignated former pars. (a) and (b) as pars. (1)

and (2), respectively, of subsec. (a), and added subsec. (b).

1970 - Pub. L. 91-271 substituted references to the appropriate

customs officers for references to the collector of customs

wherever appearing.

1950 - Act June 17, 1950, amended section generally to remove the

prohibition against, and to authorize specifically, manufacture and

exhibition within a zone.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 31(b) of Pub. L. 104-295 provided that: ''The amendment

made by this section (amending this section) shall apply with

respect to merchandise admitted into a foreign trade zone after the

date that is 15 days after the date of the enactment of this Act

(Oct. 11, 1996).''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-182 applicable (1) with respect to

exports from the United States to Canada on Jan. 1, 1996, if Canada

is a NAFTA country on that date and after such date for so long as

Canada continues to be a NAFTA country and (2) with respect to

exports from the United States to Mexico on Jan. 1, 2001, if Mexico

is a NAFTA country on that date and after such date for so long as

Mexico continues to be a NAFTA country, see section 213(c) of Pub.

L. 103-182, set out as an Effective Date note under section 3331 of

this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 485(a) of title III (Sec. 301-485) of Pub. L. 101-382

provided that: ''Except as otherwise provided in this title, the

amendments made by this title (amending this section and sections

1309, 1313, 1466, and 1553 of this title and enacting provisions

set out as notes under sections 1309, 1466, and 1553 of this

title), shall apply with respect to articles entered, or withdrawn

from warehouse for consumption, on or after October 1, 1990.''

EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENTS

Amendment by Pub. L. 100-449 effective on date the United

States-Canada Free-Trade Agreement enters into force (Jan. 1,

1989), and to cease to have effect on date Agreement ceases to be

in force, see section 501(a), (c) of Pub. L. 100-449, set out in a

note under section 2112 of this title.

Amendment by section 1783(f) of Pub. L. 100-418 applicable with

respect to articles entered or withdrawn from warehouse for

consumption, after Sept. 30, 1988, pursuant to section 1831(a) of

Pub. L. 100-418.

EFFECTIVE DATE OF 1984 AMENDMENT

Section 231(a)(3) of Pub. L. 98-573 provided that: ''The

amendments made by paragraph (2) (amending this section) shall take

effect on the fifteenth day after the date of the enactment of this

Act (Oct. 30, 1984).''

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-271 effective with respect to articles

entered, or withdrawn from warehouse for consumption, on or after

Oct. 1, 1970, and such other articles entered or withdrawn from

warehouse for consumption prior to such date, or with respect to

which a protest has not been disallowed in whole or in part before

Oct. 1, 1970, see section 203 of Pub. L. 91-271, set out as a note

under section 1500 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions, personnel, assets, and liabilities of

the United States Customs Service of the Department of the

Treasury, including functions of the Secretary of the Treasury

relating thereto, to the Secretary of Homeland Security, and for

treatment of related references, see sections 203(1), 551(d),

552(d), and 557 of Title 6, Domestic Security, and the Department

of Homeland Security Reorganization Plan of November 25, 2002, as

modified, set out as a note under section 542 of Title 6.

All offices of collector of customs, comptroller of customs,

surveyor of customs, and appraiser of merchandise in Bureau of

Customs of Department of the Treasury to which appointments were

required to be made by President with advice and consent of Senate

ordered abolished with such offices to be terminated not later than

December 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25,

1965, 30 F.R. 7035, 79 Stat. 1317, set out as a note under section

1 of this title. All functions of offices eliminated were already

vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5, Government Organization and Employees.

-MISC5-

FLOOR STOCKS TAX TREATMENT OF ARTICLES IN FOREIGN TRADE ZONES

Notwithstanding this chapter, articles located in a foreign trade

zone on the effective date of increases in tax under specific

amendments by Pub. L. 101-508 subject to floor stocks taxes under

certain circumstances, see section 11218 of Pub. L. 101-508, set

out as a note under section 5001 of Title 26, Internal Revenue

Code.

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title

XVIII (Sec. 1801-1899A) of Pub. L. 99-514 require an amendment to

any plan, such plan amendment shall not be required to be made

before the first plan year beginning on or after Jan. 1, 1989, see

section 1140 of Pub. L. 99-514, as amended, set out as a note under

section 401 of Title 26, Internal Revenue Code.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 58c, 1508 of this title;

title 26 sections 5003, 5214.

-CITE-

19 USC Sec. 81d 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81d. Customs officers and guards

-STATUTE-

The Secretary of the Treasury shall assign to the zone the

necessary customs officers and guards to protect the revenue and to

provide for the admission of foreign merchandise into customs

territory.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 4, 48 Stat. 1000.)

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers of Department of the Treasury and

functions of all agencies and employees of such Department

transferred, with certain exceptions, to Secretary of the Treasury,

with power vested in him to authorize their performance or

performance of any of his functions, by any of such officers,

agencies, and employees, by Reorg. Plan No. 26 of 1950, Sec. 1, 2,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5, Government Organization and Employees.

-CITE-

19 USC Sec. 81e 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81e. Vessels entering or leaving zone; coastwise trade

-STATUTE-

Vessels entering or leaving a zone shall be subject to the

operation of all the laws of the United States, except as otherwise

provided in this chapter, and vessels leaving a zone and arriving

in customs territory of the United States shall be subject to such

regulations to protect the revenue as may be prescribed by the

Secretary of the Treasury. Nothing in this chapter shall be

construed in any manner so as to permit vessels under foreign flags

to carry goods or merchandise shipped from one foreign trade zone

to another zone or port in the protected coastwise trade of the

United States.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 5, 48 Stat. 1000.)

-CITE-

19 USC Sec. 81f 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81f. Application for establishment and expansion of zone

-STATUTE-

(a) Application for establishment; requirements

Each application shall state in detail -

(1) The location and qualifications of the area in which it is

proposed to establish a zone, showing (A) the land and water or

land or water area or land area alone if the application is for

its establishment in or adjacent to an interior port; (B) the

means of segregation from customs territory; (C) the fitness of

the area for a zone; and (D) the possibilities of expansion of

the zone area;

(2) The facilities and appurtenances which it is proposed to

provide and the preliminary plans and estimate of the cost

thereof, and the existing facilities and appurtenances which it

is proposed to utilize;

(3) The time within which the applicant proposes to commence

and complete the construction of the zone and facilities and

appurtenances;

(4) The methods proposed to finance the undertaking;

(5) Such other information as the Board may require.

(b) Amendment of application; expansion of zone

The Board may upon its own initiative or upon request permit the

amendment of the application. Any expansion of the area of an

established zone shall be made and approved in the same manner as

an original application.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 6, 48 Stat. 1000.)

-CITE-

19 USC Sec. 81g 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81g. Granting of application

-STATUTE-

If the Board finds that the proposed plans and location are

suitable for the accomplishment of the purpose of a foreign trade

zone under this chapter, and that the facilities and appurtenances

which it is proposed to provide are sufficient it shall make the

grant.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 7, 48 Stat. 1000.)

-CITE-

19 USC Sec. 81h 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81h. Rules and regulations

-STATUTE-

The Board shall prescribe such rules and regulations not

inconsistent with the provisions of this chapter or the rules and

regulations of the Secretary of the Treasury made hereunder and as

may be necessary to carry out this chapter.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 8, 48 Stat. 1000.)

-CITE-

19 USC Sec. 81i 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81i. Cooperation of Board with other agencies

-STATUTE-

The Board shall cooperate with the State, subdivision, and

municipality in which the zone is located in the exercise of their

police, sanitary, and other powers in and in connection with the

free zone. It shall also cooperate with the United States Customs

Service, the United States Postal Service, the Public Health

Service, the Immigration and Naturalization Service, and such other

Federal agencies as have jurisdiction in ports of entry described

in section 81b of this title.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 9, 48 Stat. 1000; Pub. L. 106-36,

title I, Sec. 1001(b)(3), June 25, 1999, 113 Stat. 131.)

-MISC1-

AMENDMENTS

1999 - Pub. L. 106-36 substituted ''United States Postal Service,

the Public Health Service, the Immigration and Naturalization

Service'' for ''Post Office Department, the Public Health Service,

the Bureau of Immigration''.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions, personnel, assets, and liabilities of

the United States Customs Service of the Department of the

Treasury, including functions of the Secretary of the Treasury

relating thereto, to the Secretary of Homeland Security, and for

treatment of related references, see sections 203(1), 551(d),

552(d), and 557 of Title 6, Domestic Security, and the Department

of Homeland Security Reorganization Plan of November 25, 2002, as

modified, set out as a note under section 542 of Title 6.

Functions of Public Health Service, Surgeon General of Public

Health Service, and of all other officers and employees of Public

Health Service, and functions of all agencies of or in Public

Health Service transferred to Secretary of Health, Education, and

Welfare by Reorg. Plan No. 3 of 1966, 31 F.R. 8855, 80 Stat. 1610,

effective June 25, 1966, set out in the Appendix to Title 5,

Government Organization and Employees. Secretary of Health,

Education, and Welfare redesignated Secretary of Health and Human

Services by section 509(b) of Pub. L. 96-88, title V, Oct. 17,

1979, 93 Stat. 695, which is classified to section 3508(b) of Title

20, Education.

Functions of all other officers of Department of Justice and

functions of all agencies and employees of such Department

transferred, with a few exceptions, to Attorney General, with power

vested in him to authorize their performance or performance of any

of his functions by any of such officers, agencies, and employees,

by former sections 1 and 2 of Reorg. Plan No. 2 of 1950, eff. May

24, 1950, 15 F.R. 3173, 64 Stat. 1261, set out in the Appendix to

Title 5. The Immigration and Naturalization Service, referred to in

this section, was in Department of Justice.

Functions of all other officers of Department of the Treasury and

functions of all agencies and employees of such Department

transferred, with certain exceptions, to Secretary of the Treasury,

with power vested in him to authorize their performance or

performance of any of his functions, by any of such officers,

agencies, and employees, by Reorg. Plan No. 26 of 1950, Sec. 1, 2,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5. Customs Service was under Department of the

Treasury.

ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF

FUNCTIONS

For abolition of Immigration and Naturalization Service, transfer

of functions, and treatment of related references, see note set out

under section 1551 of Title 8, Aliens and Nationality.

-CITE-

19 USC Sec. 81j 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81j. Cooperation of other agencies with Board

-STATUTE-

For the purpose of facilitating the investigations of the Board

and its work in the granting of the privilege, in the

establishment, operation, and maintenance of a zone, the President

may direct the executive departments and other establishments of

the Government to cooperate with the Board, and for such purpose

each of the several departments and establishments is authorized,

upon direction of the President, to furnish to the Board such

records, papers, and information in their possession as may be

required by him, and temporarily to detail to the service of the

Board such officers, experts, or engineers as may be necessary.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 10, 48 Stat. 1001.)

-CITE-

19 USC Sec. 81k 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81k. Agreements as to use of property

-STATUTE-

If the title to or right of user of any of the property to be

included in a zone is in the United States, an agreement to use

such property for zone purposes may be entered into between the

grantee and the department or officer of the United States having

control of the same, under such conditions, approved by the Board

and such department or officer, as may be agreed upon.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 11, 48 Stat. 1001.)

-CITE-

19 USC Sec. 81l 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81l. Facilities to be provided and maintained

-STATUTE-

Each grantee shall provide and maintain in connection with the

zone -

(a) Adequate slips, docks, wharves, warehouses, loading and

unloading and mooring facilities where the zone is adjacent to

water; or, in the case of an inland zone, adequate loading,

unloading, and warehouse facilities;

(b) Adequate transportation connections with the surrounding

territory and with all parts of the United States, so arranged as

to permit of proper guarding and inspection for the protection of

the revenue;

(c) Adequate facilities for coal or other fuel and for light and

power;

(d) Adequate water and sewer mains;

(e) Adequate quarters and facilities for the officers and

employees of the United States, State, and municipality whose

duties may require their presence within the zone;

(f) Adequate enclosures to segregate the zone from customs

territory for protection of the revenue, together with suitable

provisions for ingress and egress of persons, conveyances, vessels,

and merchandise;

(g) Such other facilities as may be required by the Board.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 12, 48 Stat. 1001.)

-CITE-

19 USC Sec. 81m 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81m. Permission to others to use zone

-STATUTE-

The grantee may, with the approval of the Board, and under

reasonable and uniform regulations for like conditions and

circumstances to be prescribed by it, permit other persons, firms,

corporations, or associations to erect such buildings and other

structures within the zone as will meet their particular

requirements: Provided, That such permission shall not constitute a

vested right as against the United States, nor interfere with the

regulation of the grantee or the permittee by the United States,

nor interfere with or complicate the revocation of the grant by the

United States: And provided further, That in the event of the

United States or the grantee desiring to acquire the property of

the permittee no good will shall be considered as accruing from the

privilege granted to the zone: And provided further, That such

permits shall not be granted on terms that conflict with the public

use of the zone as set forth in this chapter.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 13, 48 Stat. 1001.)

-CITE-

19 USC Sec. 81n 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81n. Operation of zone as public utility; cost of customs

service

-STATUTE-

Each zone shall be operated as a public utility, and all rates

and charges for all services or privileges within the zone shall be

fair and reasonable, and the grantee shall afford to all who may

apply for the use of the zone and its facilities and appurtenances

uniform treatment under like conditions, subject to such treaties

or commercial conventions as are now in force or may hereafter be

made from time to time by the United States with foreign

governments and the cost of maintaining the additional customs

service required under this chapter shall be paid by the operator

of the zone.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 14, 48 Stat. 1001.)

-CITE-

19 USC Sec. 81o 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81o. Residents of zone

-STATUTE-

(a) Persons allowed to reside in zone

No person shall be allowed to reside within the zone except

Federal, State, or municipal officers or agents whose resident

presence is deemed necessary by the Board.

(b) Rules and regulations for employees entering and leaving zone

The Board shall prescribe rules and regulations regarding

employees and other persons entering and leaving the zone. All

rules and regulations concerning the protection of the revenue

shall be approved by the Secretary of the Treasury.

(c) Exclusion from zone of goods or process of treatment

The Board may at any time order the exclusion from the zone of

any goods or process of treatment that in its judgment is

detrimental to the public interest, health, or safety.

(d) Retail trade within zone

No retail trade shall be conducted within the zone except under

permits issued by the grantee and approved by the Board. Such

permittees shall sell no goods except such domestic or duty-paid or

duty-free goods as are brought into the zone from customs

territory.

(e) Exemption from State and local ad valorem taxation of tangible

personal property

Tangible personal property imported from outside the United

States and held in a zone for the purpose of storage, sale,

exhibition, repackaging, assembly, distribution, sorting, grading,

cleaning, mixing, display, manufacturing, or processing, and

tangible personal property produced in the United States and held

in a zone for exportation, either in its original form or as

altered by any of the above processes, shall be exempt from State

and local ad valorem taxation.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 15, 48 Stat. 1002; Pub. L. 98-573,

title II, Sec. 231(b)(1), Oct. 30, 1984, 98 Stat. 2991.)

-MISC1-

AMENDMENTS

1984 - Subsec. (e). Pub. L. 98-573 added subsec. (e).

EFFECTIVE DATE OF 1984 AMENDMENT

Section 231(b)(2) of Pub. L. 98-573 provided that: ''The

amendment made by paragraph (1) (amending this section) shall take

effect on January 1, 1983.''

-CITE-

19 USC Sec. 81p 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81p. Accounts and recordkeeping

-STATUTE-

(a) Manner of keeping accounts

The form and manner of keeping the accounts of each zone shall be

prescribed by the Board.

(b) Annual report by grantee

Each grantee shall make to the Board annually, and at such other

times as it may prescribe, reports on zone operations.

(c) Report to Congress

The Board shall make a report to Congress annually containing a

summary of zone operations.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 16, 48 Stat. 1002; Pub. L. 96-609,

title II, Sec. 204, Dec. 28, 1980, 94 Stat. 3561; Pub. L. 99-386,

title II, Sec. 203(b), Aug. 22, 1986, 100 Stat. 823.)

-MISC1-

AMENDMENTS

1986 - Subsec. (b). Pub. L. 99-386, Sec. 203(b)(1), substituted

''reports on zone operations'' for ''reports containing a full

statement of all the operations, receipts, and expenditures, and

such other information as the Board may require''.

Subsec. (c). Pub. L. 99-386, Sec. 203(b)(2), added subsec. (c)

and struck out former subsec. (c) which required the Board to make

an annual report to Congress containing a summary of the operation

and fiscal condition of each zone, and transmit copies of the

annual report of each grantee.

1980 - Subsec. (c). Pub. L. 96-609 substituted ''by April 1 of

each year'' for ''on the first day of each regular session''.

-CITE-

19 USC Sec. 81q 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81q. Transfer of grant

-STATUTE-

The grant shall not be sold, conveyed, transferred, set over, or

assigned.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 17, 48 Stat. 1002.)

-CITE-

19 USC Sec. 81r 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81r. Revocation of grants

-STATUTE-

(a) Procedure for revocation

In the event of repeated willful violations of any of the

provisions of this chapter by the grantee, the Board may revoke the

grant after four months' notice to the grantee and affording it an

opportunity to be heard. The testimony taken before the Board

shall be reduced to writing and filed in the records of the Board

together with the decision reached thereon.

(b) Attendance of witnesses and production of evidence

In the conduct of any proceeding under this section for the

revocation of a grant the Board may compel the attendance of

witnesses and the giving of testimony and the production of

documentary evidence, and for such purpose may invoke the aid of

the district courts of the United States.

(c) Nature of order of revocation; appeal

An order under the provisions of this section revoking the grant

issued by the Board shall be final and conclusive, unless within

ninety days after its service the grantee appeals to the court of

appeals for the circuit in which the zone is located by filing with

the clerk of said court a written petition praying that the order

of the Board be set aside. Such order shall be stayed pending the

disposition of appellate proceedings by the court. The clerk of

the court in which such a petition is filed shall immediately cause

a copy thereof to be delivered to the Board and it shall thereupon

file in the court the record in the proceedings held before it

under this section, as provided in section 2112 of title 28. The

testimony and evidence taken or submitted before the Board, duly

certified and filed as a part of the record, shall be considered by

the court as the evidence in the case.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 18, 48 Stat. 1002; June 25, 1948, ch.

646, Sec. 32(a), 62 Stat. 991; May 24, 1949, ch. 139, Sec. 127, 63

Stat. 107; Pub. L. 85-791, Sec. 11, Aug. 28, 1958, 72 Stat. 945.)

-MISC1-

AMENDMENTS

1958 - Subsec. (c). Pub. L. 85-791 substituted ''thereupon file

in the court'' for ''forthwith prepare, certify, and file in the

court a full and accurate transcript of'' and ''as provided in

section 2112 of title 28'' for ''the charges, the evidence, and the

order revoking the grant'' in third sentence.

-CHANGE-

CHANGE OF NAME

Act June 25, 1948, eff. Sept. 1, 1948, as amended by act May 24,

1949, substituted ''court of appeals'' for ''circuit court of

appeals''.

-CITE-

19 USC Sec. 81s 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81s. Offenses

-STATUTE-

In case of a violation of this chapter, or any regulation under

this chapter, by the grantee, any officer, agent or employee

thereof responsible for or permitting any such violation shall be

subject to a fine of not more than $1,000. Each day during which a

violation continues shall constitute a separate offense.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 19, 48 Stat. 1003.)

-CITE-

19 USC Sec. 81t 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81t. Separability

-STATUTE-

If any provision of this chapter or the application of such

provision to certain circumstances be held invalid, the remainder

of this chapter and the application of such provisions to

circumstances other than those as to which it is held invalid shall

not be affected thereby.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 20, 48 Stat. 1003.)

-CITE-

19 USC Sec. 81u 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 1A - FOREIGN TRADE ZONES

-HEAD-

Sec. 81u. Right to alter, amend, or repeal chapter

-STATUTE-

The right to alter, amend, or repeal this chapter is reserved.

-SOURCE-

(June 18, 1934, ch. 590, Sec. 21, 48 Stat. 1003.)

-CITE-