HomeMy WebLinkAbout04-23-1991
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AGENDA
r CITY OF DENTON CITY COUNCIL
April 23, 1991
special Call Session of the City of Denton city council on
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Tuesday, April 23, 1991, at 5:15 p.m. in the Civil Defense Room
of City Hall, 215 E. McKinney, Denton, Texas at which the z
following items will be considered:
S:IS p.m.
' i 1. Executive session: f
I A. Legal Matters Under Sec. 2(e), Act. 6252-17
l V.A.T.S. ±
1. Consider action in Keleoe v City.
2. Consider action in Verhota v. City, t+
B. Real Estate Under Sec. 2(f), Art. 6253-17
V.A.T.S. ,Rt-
C. Personnel/board Appointments Under see, 2(g),
Art 6252-17 V.A.T.S.
1. Consider appointments to the Building Code f`
Board, Community Development Block agent ;
Committee, the Electrical Code Board, the
Historic Landmark Commission, the Human
Services Committee. the Downtown Advieoty
Roard and the Sign Board of Appeals:
f 2. Receive a report and consider approval of, a formal
letter of support for an 135W corridor foreign trade
:one. ;
C E R T I Y 1 C A T E
I certify that the above notice of meeting watt posted ou the
bulletin board at the City Hall of the City of Denton, Texas, {
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on the day of 1991 at o'clock
~ {apt,.) (p.b.)
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CITY SECRETARY
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CITY of DINTON / 215 E. McKinney l Denton, Texas 76201 '
MEMORANDUM /
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DATEt April 19, 1991 Ws,
TOs Mayor and Members of the City Council i ,
1•ROMs Betty McKean Executive Director
Municipal Services/Economic Development J i'r
SUBdECTs Foreign Trade Zone E a ~T`yl'
Our office contacted the Foreign Trade Zone Board at the U.S.
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DepartmerL of Commerce, U.S. Customs Department, Texas Department r }r'.tl;'
of Commerce, City of Houston, and the D/FW Foreign Trade Zone ~r T
Office to research foreign trade zones. In addition, a portion of
our information was taken from Strasburger 6 Price's Foreign Trade
Zone Handbook. Strasburger i Price is a law firm that specializes
in international matters. I have attached a copy of that handbook °
for your review. The following is a brief outline of the (
characteristics of a foreign trade zones
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o Foreign Trade Zones are an effective way for companies located
in the United States to locate manufacturing and processing4
facilities within the United States rather than abroad, and
still compete with foreign companies on an even playing field.
o A business operating in a foreign trade zone may receive a
number of economic benefitst
Duty deferral • tf. ability to avoid paying duties on
imported merchand a until the merchandlaa leaves the
foreign trade zone and enters the commerce of the United States. (S&P Pg 1)•
- Quotas have been established by the U.Ss Customs
Department to protect U.S. competition. These quotas
t', tr limit the quantity of certain goods; a business can import
,?r s and may have an impact on the business' purchasing,;;
procedures. A foreign trade zone allows a business to
r` purchase in quantity and store the goods in excess of the L
quota duty free. The business can then ship the stored
goods as quota restrictions permit, i .
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~ Mr. Mike Brengle of the U.B. Customs Department gave us
h the following example of how a business could take
` advantage of foreign trade zone benefits and avoid
obstacles imposed by quotasi
I A company may be able to get a favorable price break by
purchasing 500 of a particular item. The quota
restriction may only allow 200. The company would be
able to benefit from the price break and purchase the 500
items, ship 200 to customers in the U.S., and store the
to g ship trade again. until the quota
remaining ion 300 in
permits the him foreign
restrict
- Inventory imported into a foreign trade zone or brought
in for export is exempt from Statand local 4 property taxes. (S&P Pg 2) it meats the Freeport
exemption requirements, all remO ning inventory is
taxable. Property and buildings located in foreign
i trade zone continue to be subject to property tax.
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Mc. Brengle said that foreign trade zones are the "wave of the
' future" in economic development. He said, "Because businesses can
benefit from the tax exemptions and duty deferrals, they are able ;
to stimulate local economic growth and create employment. A
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foreign trade zone allows companies to operate who would not be
1 able to do so without these benefits. I would encourage you to '
consider establishing a foreign trade zone." i
As you know, The Perot Group (TPG) will be submitting an 1
application to the Foreign Trade Zone Board of the U.B. Department
of Commerce at the end of this month. TPG will be responsible for
orIlneavin
I` the control and documentation of material entering included
the gzthe
foreign trade zone. The property to be application will include Alliance Airport, the Perot property along
Highway 1701 property along Highway 114, and the Hunter Ranch. A
description and map indicating those properties is attached. t
We recommend that Council approve support of The Perot Group's
application for a foreign trade zone. As new companies consider
locating at the Hunter Ranch properties#
and may be forei
major rode zone
place factor for
inccntive will already be in
those businesses dealing in foreign trade. We believe a foreign
trade zone is yet another economic development marketing tool in
attracting industry to Denton.
The City and Chamber will continue to look into the feasibility of
masub-zone on other rketing strategy properties
of g our trade long zone
establishing s part foreign
range or
in Denton a
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please let me know if we can provide you with any additional
information on foreign trade zones. l'J
"•T AC , Exacutive D rector
Municipal Services/Economic Development
6304 rr
Attachments . `
Foreign Trade Zone Boundary Description/Map ; 33 tr'
"Foreign Trade Zone Handbook" rrl
D/Fw zone Savings Analysis Fact STaet
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ZONE SAVINGS ANALYSIS
HOW COMPANIES EXAMPLE YOUR
BENEFIT COMPANY
Duty is defamed on Imported Constant Inventory
goods odmhtsd to a tone Swings
j whether ehkply for storage, or for
f A e $40,000,000
j mampuistbn such as packaging. DAmount utiable Inventory
marking, IaWkV, ropsduohg,
eta, or for assembly/ Average Duty Rate 10y.
manufacturing. Cosh flow b Ft
Improved.
fie tons user must pay duty only Duty ddsned on $ I10OQ00o 10
when goods leave the 9000 and phmaMM bads f
order the U. 6, market.
The tons war le"Vw hs cash Cat Of Vonsy (set)
flow poshlon by shortening the time
between paymaM of duties OW Annual Savings (at.) }640,000
rsalpt of hoome from ft safe of
Re goods. i t
The tons uar schfewe a mayor e
reduction h ib *Vkal npuinmeMs
for financhg.
W Unlud Was duty Is EsoeH SwtiOs
when f♦exoontns ,
mm the tmM,
Goods imported duty ties Into the Amount of Imports =20,000,000 !
tare may be prooeaeed In a expottod annually from the
variety of no . Inspsoled, gone
sssombiod IMO finbhsd produ016,
rop"&god or simply worshouud, Average Dory Rata (sat) ~
than oq*Aed to moruts OUleido
tha Unwed Staloe • with 00 AAusl SavIno (est.) a
sessasd U.S. Autos. f 1.900.000
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Proossalng goods wlthh the eons Maw+faoIuftAsoW*
Can olmhots of low Wft Proceeskfg Savings
A company ft Imports P" Into
the gone and asoomblee them Into Annual duty 01ch would S r00,000
finished products em reduce or We boM paid on
elmineb Wft by shh*V flrtbhod hkpoMd oomponarw 1
x produote from the eons. materfafe, eta
Duty on fin" goods 4 0,000
due to bwar ride on duty
theroon
Annual Sovirgo (eat.) ~99~444.
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HOW COMPANIES EXAMPLE YOUR
BENEFIT COMPANY
f Duties can be avoided on defactiw 10efeotNelDemspedl
damaged goods dis"ored by wowsmsobte Sov"s
Inspecting and testing Imported
goods whhin a zone. and Total dutiable Imported $20,000,000
► ssgrega•ing the raft for return to goods
shipper or for other dutydree
d;spo,ition. Percentage of doloctlve 16%
metsrlat a
And no duly is due for any Value of dutiable goods $ 3,000,000
wm ntable boswk+owng that became delactiw, a +
evaporation, aespage, spoilage, eta
t Impurities, damage, dabcts or
obsolescence. Avenge Duty Rate (est.) A%
Annual SavkVo (est.) 820.00
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In addition b Fire and Theh Fire and Theft Maurartoe
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l InaUraflOe Savings, dapandMg -r.
upon shipmerd method, Nr/eceon, Average am " d $41,000.000
oontainerized w-wMalrrsrized, `
nature of p n
no 1 tMR kwuraws (.07
109E to 21have, been id In
total trwow hwnnee from W111100) $ 3000
foreign shoos plant to U,S.
Impaler In a Zone vas. U.S.
Importer outside a Zane
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I' Addh anal poasibW "Ariga eon be derlwd (a) bwer overseas trwaporlatbn assts, (b) duty deferred on exhbNbn merchandsd, (c) raduc0on
In lotunnea premiums due to locations security and fin Votwiion of the Zoos and (d) being able to buy quota merchand4o at the most ' %
opwuns Wo.
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DALLAS I FORT W0f1TH INTERNATIONAL A1iPORT SOARD t
TRADE DEVELOPMENT
P. 0. DMWFR DFW r
DALLAS I FORT WORTH AIRPORT, TEXAS 702Et
''t' ' ~ ' 7efepf~' 211I374.307g a
1 fax: 214474.3108 E ~
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Tsbk o(CoMeels
I• Introdualon .X.. ..•.,.Y...
1 Whw its Fore TYsde ?ate NW » 1
2. Overview of Econ mic Baxbn N N N_ 1
3. iDptl00 .N.N«w .NY..YN .YW,Y 2
4. Axe yn Thtde law fixnalioo wl Op"W N.« 2
U. opftimolFae*Ttsdezmm..N,IN,W...IYX.»YYY 3
1. Rrerjo Trade Toga PdM N..N,.,.ww.w,N N«;.wN 3
2! EeroMbhY* • Noreip TroW Tare i. »,w««w /
3. SwWm and %clibles hftk%d by awaw.~•» 7
4X SupavWm of opw*lar W.N.»YNNN w WM ,Nw 7
I Creta=Adaridetratiorr-Au&-krpwioe
`O !lNMIYUwu«N.q W MNIXYN I.WNy B `
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IOpe~WUIN. N,M W«,N YW.MN YWNUw
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lk 1oUO1 iivg awterkle Mw been 7. oeaasf Dwia wN. wN.N NY NNIXN 4
Fo4wilo
pvpwod by Strasburger med Prkefor roar & terr.bdble AWvlrfa Widtfo a Trade
zone N YY,YY.WN il1.......lWNYwY 10
k wklyby c4mu and f krok of the Fka /1 ; Xp
? generd IA~DrAlatlOn only and III. CLIOnu TreatmeotN N,...,lw«..N«.NNX.YN.w4 w.uYMNw IQ,a
not immskd b be a detailed or 49%08" 1. Afth" of Madwtdlee ado a Zane «w ww NN1 , 10
' 2 5latue of Mna,wwre b b raw it aealyt1t/r~ofaNeryspscJJkandd~9cult area 3 Air IMachnddea NNXwN »W.:;«N' it
O ~el of#&law. ~ ~ ~AIOR~rYldla YILYMW«.IMW 11 , .XC+f
.i _ wr«NINN .W.iLN 12
" . , ~ Q ZawReMrkad I~IerehatdiM W.N«.iiw.w. NYN»~:' 13 r ,I~,
71 MY*Aki^ wMillw i"I M&MM
Datrodba ' W. W.IWINWNW WMI.NN W»NINW I~ L.,
I Dbpmmm NW Rem"Iof 1Ners8sndYe MN..NNW `1~, *T
IV. lsw Applicable to a knoi Th* Tom » Y.N«I w y' 4
V. Adventap of Opwa ft is a Hoalai'Mde Zard NN y
1 Duty Dekeal and 61Wiestlan
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2 Low D" RawN NwWw.N«W«N~...«, .wd • iS
3 WmL /NAfRiW W AWkmbb NwrNNw NYYw ~ ii0 T , ^
.1 tew ~ Obuia Daee~e~aytk~ l~ wi Ww Nw.Nw.«Ni . i9 u ' D
l l~wtpike S. Rearhrb*bvdmbmyye~yw. Y.Nwwww.! .Nr W 17 , Xti,i ~+.rr r
Flo-, 1oa Q frarlun IA* b Zane hocese !b
„iNWi,.MW 14NN w
/ F.spora Y. WLuIMUNw MM M.W 11 , ~rv
a ~rrrvedory lax ,«l.,wlN l.1. «.N.INNNN.{N .wwwN i~~( i
{ 4. Fixel3rt Tlrada zaea and Magrrifadara: »N «Nw ` 174 • x ;
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t I• usually be held in a tone until the neat guars period begun. t
I INTRODUCTION similarly, acme moving tattictbna may also be avoided by 1
W6rt h Got eisa'[Yattf~ Zoo!? hinging g~ ire a foreign usde sane.
Itom mic pods nerved !mo a :ate for expert are rated
E A foreign 4ade torn is on area WAI Is located wirhit the m exported wbea they cola the tone; aonequmly, exporters
Unked Sates, but is carokfaod outside of ft Ostona lertkory may accelerate drawbacks by moving pods to be exported bb
oftheUnitedswea 7TtelJnUedSwavasiatortbe'Ireepon," axone, Similarly, kaportedpods "lot WOU Mimbaxon
facign Inds tortes operate two public tallkles putawnt to a tow to be dea<royed, auto m debaive products, ate Wasod as ex-
parted and engbla Re drawbdui,
} fiom the ForelpTrade Zone Bard. AuthalaW by the Bolt IV
iE T06 ZAm Aso of 1934 #W •Aa"I, Rn* Trade Zoom am
desipsd b ktcxesm the wt of Amai m labor NW increme saw at Sam bal awt larva gs that are are e o pplia tl In n a fathe rad cos of
npkal invem" in sloe Urrked Sulu by arbaiag aalviy to bwoussa of federal m?ot examexa a m a Irade rcoe
aa proanpfoo. Rple, awe and foal d
coat in the United Saw prior b the appliatiort of US. OA- valorem test an IOYptary is to tr1 11 P I Is to Imps nigh of
ants laws, thereby egmllabg the Comm vastams of the faelgn deatkaml s goods In a brdpt It" no. Simirady,
activity with Similar whities occ rrYtg of *Am Of ONFML anme tote !
oat•
E Faefpt trade roosts operation are governed by die Aso and rsnkx optrrbg b s& era txU The "ll c Qbuoads
regukrbn issued by the Dephrlow tt of Otatroerot arW the dk
Depart nl chhe Treasury (aolketively the •PcguWbn'). Paart III, atW of the pods soot b savings towra add ade a d banetradefi!Dada.lS rtp toTit m applkabb are le tnrSdd
In
P to Wrenn
pt m v g IBeeaAfar Irafa ton users an daalbed in am &tell In ha V.
A bminm apanbg rn a fools IF We wool may re«ive 1Loea6110
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m mwba d cc* omb benefits. One of the primary bees: fix is The Aso provides ohm f Wp trade mom must be bated
duty dektnl; the abiliy to avoid peybg duties one imported at a ad* m b United States porox
past
In r l aodlae until the merdtsnd m laves the fertign trade torte denary Y errkied to at last oft", oe i00 4~
L &W toes sloe Comm ere of the UWtsd Swa, muchlowa Omtowpersomel Were ngoiadsobaaaawlien btsipattade
ft Imported Into am te•ettpased h m a brelpt trade some Is no yes, holy, die Mss or edpoeol0 nquiamadi wm
Ifs sullim to My. kQporw lfMg of faetgustub
rswvadugrrataarealaoadtkvabkthrautghfarefpttrade aoncaNawbwithspprorYstately~300
me Parry fif' f
m Aa adore hilly dimmood below, a fm* trade mot wet Seta, and with Ommim
Ott nsearbim a rwmfacturm peoduaa in a vow may ekxi to audit and periodic kmpm lone, It is pomble to Wow a fa yelp
pay duty an imported ecmponeW eldtar at the duty rats ep• trade tone virtually anywhere In to United Staled duty l ~ to the composomm us added v*Ai its ra aR60dadt
ddut at p F« eisra Trade Zola« Rte tlatrtlom utl opttt*tioal . to a~
in amkwmadlvilriitwtion,that I%a"lost Is01"1ltedwy + The foroatbn of a (=IV trade toot Wa "-slip
ate an On Now product k lewd lira Ilw oe the imported
process. l m
b~bebreipttrade nwuSerkanrowiSktabwaavaallduty fm applicam netts Mlabubestabllq~
leg bn ¢ f
lagislalute aullsonhdig Yt! appMart b
apply to oa Fonelp T*b Zahn Board Ax a b v* Made Liar
Quay rauictiom generally nay be avoided by admktfng gnat. Mm ffl* o must then nit do appifatlan wile da '
gnodn kro a Wpt trade tone. owt.quaa m mhandbe may Fkalp Trade Zwm Baal, rod fdfow ing appm W from the . '
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Foreign Trade Zone Bard, the grant holder must swage foe
aaivuiaeofdtemnewhbdteDlstrktDMectarofUS.Ooom Cbmmkmc of Alternates, whkh acrs In Ime of the rbrehaving Jurizdiaion over the fomign trade zone site. Trade Zones
Band. Presently, the 0omm6ke of Altermm i
isckm1m the Aubm Secretary of comm" for Import l
Although not specifically referenced in the Act two dis- Ad.
dna types or zany have developed, and have bNo separately minWrstlan, dr Assistant Secretary of Tramy W
nand In proposed kmign trade zones regulations: genes! pur- b4 r M01 and Operation, and the Rufdent Member of tM
Army ava
Pao mono, and special purpae suh m,% A general purpaa W0 hognm Board of F+tgiroen for Rhers and
zone lo, a the moon suggests, ds $NMI som ape ambww
far mukkk users by a gnnke. A special purpose a ftorte is a ifs dally apmd m of the Iioreign Trade Z "fiord
site ancillry to the general pttrpoae mm which k Swat tore lgn are rut by do Suoudve Secretary and 04 ft "11114 Trade Zones
p It,* mom Oft for do bewfk of s paimbub r wet who moron- Bosh staff. AdmaNdIv i"ly, ds &eattlve 9azetsey atedauff
III be aacommodrted at the gaeaal purport mom tire. Subaas are PWW MOM 1ha D1011110111090 of 00mnaee. Along *M
i OWNS k oomnonly graded b emlrting mrwr6cauring fapltia, monk* the dar-ro ds
r opernlon of tha taetpt lraee moms
&W because R Is ancillary to an epdifrrg pumi pt9m am, Program, the 8ue114Me SOMWY is vk specft
ton not ragttin Separate state enabling bodatba duties by to Regufukm m** 4 a wtwl Rpm a
Ap E : .
mw trade me opwratiom irwolva throe Wpm ~w spprovfag thetuft and nka applfp * io mchmarts, I
tin: doe grades, the operator, and the user. The VvAee holds app°mift ""MS br modmicatkao of ant batatdaiet,
to grant lion doe SmignTrade Zones Board and is re+partstblo EtabliAby a Irrnre{ys 7Yade Zorn I
for mane operation. Mae grrMee is quite oft o a public edhy or
goad-public entity. a a non-profit oorpoi am msblbhed _ The FbMI n Tnds Zorrra Bard may how a foralgp trade
specifically to hold the grad. The operator contracts whh the
for t+poodeWtwYrtionthetirroitaoebd
graft b run the zone on a day-today basis, and Is Senerally sdegtsle plod tar 6cwdn and noble.
responsible for remrM:erfirtg and dealing with cttronrs The hg. As a prorogttMNe a making an
sppum" he a gsadal
user w the company actually wing doe some. In same lomamms, P~ ~.+n %vuem crawl trbrie arbYgg Mgislsyap bolo I
the grrta Alpo sa wee a the operaar, and h ttsrty cats the Its SW kgisWun. An sppBaiaa for a aaha oos two dr A"
user of a special purpac rtbaom unn as Its on opaanr. by the gUM of w 411014 10m d pa" sops, and aatw-
Formatforr and apamion of to= is dncribed in anon detail in gddy dolt rat ngwm teparom agaI logYJaypa,
lhrt IL A IO* 04 1`11101 tmasal
Made aam b do appllmdoq so r Aonih In asabiM Zo s ~IV
~ Trade ZortN Pawl, ' ,
Q~ a subsMOtlof anoud of pnNmlpwy wok 4gprastry mwy.
FYM, ao ttoatsom tc ooMlboefk anyalo lo astral
OPERATION OF da"im dM feftmkY of"p10fut• 00od j t~hs~emilty
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FOREIGN TRADE ZONES serwasgaoseIsdwM MNN,ftlosiseploftligmal6V4slui
tiaa d fiearrdng a azrnalwea. Oars Mrs a•VNIenr t 0Ys.+ia
Fwteip Trade Zones Board oo,apkte +n4 In ft ctrl of r 11
0100,
Ion M" bqb*
'Roe Ad wsMYlw the fwelge itrde Zones Board,M °h0d, the
I whkh fa oanpriaed of doe Secntry dOanwmnx, doe Sccnlry The spplicatlal must Dater the requlr~pMOf drdAeUwld
Of the Tmaatry, and dte Smury of the Army. Leh of the ft Regulations. In Fdrmq IM, tit. Departament'af secretafahasdesigatedadeparlmdtempk"ioservetinthe nerd
Imsd proposed regulations dot iw i
taking tegutufon than deal with the apptkadan and Vpmnl
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proms. Although these new regulations have min not been dale and Information required by the Regulaliorr is contained in
formally adopted, the Board hoe emoted dot the revised regula• the application. Once the appliation Is delermited bcomply
tens should be used as a "guide" until the rooked rogulalksts with the Ragulatiaets, the application is mired a foram docket
became Weak. number and DJWS date. tublk nala of the fi t: is Sko in ling
1 The application for a foreign trade tm may be made by Psderal Reg)sta Intl prong reknu by the Foreign Trade Zones ?
a public corporation (i.e, a grate or a political e.Mviion there. Bcard. The notka contain the names and addresses of the g
o(a mmkipslity, a mate public agency or a corporate munkipel Wlkan'. a g amI daxiptim of the project, infamrion a to
inanxnentalhy of one or more Sulea), or by private corporation, a Public hesd% comternimg the application, if one is to be held,
for
An application by a public oorporalion Is gluon preference ran and provisions
idmstsd partly b tnm>nunkmte rani rives
approval by the Foreign Trade Zorw Board to the Foreign Trade Zones Hoard.
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7be coned of application to establish a general purpose
public notice ttareea an examinant ooaratitta,
atone or a special purpose wbeone am very sullen. The main gmrcra)ly ootsitiry of s Foreign Trade Za m Board wffinem.
distinction Is that an application for a subsone WAn on the ber, a member of the curt or the Regional CommfaaIct of
hied the operations
r that wl Me=, wherasroan tar the Arroom my which
Dhlproposed r Eagtn a for
{ beaten, and the Army Corp
1( appliadon for a genwal purpose more Nta,sea on the aced and the district within whiner the prof ored tone k loomed Thg
public buhelk b the community wrrouadktg On proposed forma) rovkw of the &Mike" is con4resed primarily by the
foreigmtradesan. TbeapplicationWfmu main a variety eOamYteraeeanmkteeandd,irlparticular commodltyiinrofted, d
Of information and dale. Among rhea are: (1) the authority or by the fleprtmatt of Oonnmeroe pereorrel reepawible far that j
the appliaa to make the aWkulon; (2) the location and commodity. A report on tits application Is prepared god
qualificatk eat Afthe ams; (1) the fktwe of the arc fora moo; premed to the Foreign T" 2ana Board.
(e) whether W gone will be at or adjacent b a port of eery; (S) At the public hearing the Fomlgt Trade Zones Board may
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full deeits as to the appiksd's purr for acquiring tick to or the require the presentation of Inb uatioe coroetrtitg the apptial.
rW% b tree lands artier than thew owned by to appfir- n by UM and generally eanducn the bearbn In kWh a Manner at rte
the Unked Seta; (6) the me" proposed b fitw the under- public lateral ttrly rogsrie The l4tlp11rada Tartss lyoArd'a
ta
finance the king accompanied by poet of the ability of the applksM to discretion b dawasJos what is in tits public Mlewet Y qWW
finance kA sad operation of the am ; (t) an brMA and often Iovolm do teat!owk Mpma on to Was.
y lM potential aosomm a and muery, rice eotrtomk kapct oetany fodt" Jefth q end des " 00
Me" or to pnapoae I tone and aher direct Ind indirect impact on tar balance of "ft. benefits accruing t ershm; %e) a description d" prapoaed Fotelp Trade Zones Baud
eN6er approvp appgpt
Tea ohhe wee and the proMA fatuities. sealed thereon; M by basting a grant of wthorky or dra)ea the appUaadon Gs.
karrporleUae aorrroctions b at paposed Ara; (10)I pm%ml• addition in the limitation ml residdion t bonulAgd M to Act
my esriow of the coat of the project; Ind (11) various mpg, and the Regulation, the Bard may mairfa or link the Want cf
diagram and surveys of die area and the proposed ske. In nAhorky a it deem it 10 be 'a the public Mterdel. per s>rAtapla,
addition to this Information And data, tie Iirelgo Trade Tares rcatrktions commonly occur when a pro" toed In I tone
plats may request an applied b submit information and dole process Is abject to a cataterwiling duty becawe d dumping
not eel out its the Regulations M order rot it to obtain a full violmlone. In that Instance, ire grata may be murheed so that
udaataeding Of the pttje&t the oauuervauing day could not be avoided. n
AleransWicadonIs filed with theForeign Trade Zoaa upon receiving a grad of Authority from the Pamir
Board, the staff makes a determ inert ion as to whether all of the Trade Zones Bard, the ganree mud have the lane MIYA d by
' S
6
is
A A
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S ohlalnktg the operstlorsl approval of the District Director of securilystarderds,andphyskslaeo chyoreschzoneamdkwad
Dj&oma. Uenenlly, the DWrbt Director toviews the physical and detamined by Customs. The District Director wigs Qs•
security of the elk, the invemoty Control pnXCdura whlCh have toms offloem as may be neaessacy to maimaln apprap law
been eaubllalted and bonding and abet documentary WON- Cl slonro supetvilloo of merdrrtdise and towr6 in a sane. }
mess or Qrtotns. Upon the approval of the Diurkl Dkocor, CWhMW AdMWbtMdW - A"I- uap6dimta
the tone k adtvated.
I Servioa wid Faalks Pmkkd by Gmebe Syaera
i Bocause of qro hweasitg number of fonlgn trade totes
f The Regulations provide that a grantee muss provide and and sutiaow and the volume of merclwdise traveling in sd
makwin the following semots and racukia: (1) adequate though tones, Customs created the audit•itrpealom system
trampmwoocomwicesatrstgedsothMgusditgandktspec• whereby thereopwabNNiaof directsupervkion,Moclr ev-
tion an be easily pmvidod for prokctin of the rcvonue; 4 and owdeadke atanr, movernm aW securky boated om
(2) adequrle load4 u rdoe ft and ward owes fecukia, and, the bonded wo opentru. TIro audk•iitrpedtoa system k bored
Y the zone Is W)aewm to nav lpbk watat, adequate slips, dicks„ upon As p wodores which ate Considered by Qrtcno to bee
sd waves; (3) adequate bciikks for ftael, light, sad power; wentW Ib Its Nactionitg sd ktoot,y. Tbase proadara ere:
(n adoqum water std sewer main; (3) adequate querkta and (1) the delermintiom by Datome of the kfsaky and rare of
hCukia for federal, mule, aid local DM OM a w employees; merdtIndbePrim WarWort WAlloskastodomoadowssine
(6) adogusle eack>" a 10 apple the woe 6om Qrbms the Ir"I resposr W*Y of the operalorl (2) do Yuane of a
Tenriu ry; (r) adocluste asnketion fecukks; ad (ti) ouch other permit a the aptalot by Customs for We trw/kt and,
servka and hcukles as may be na"Ired by the Foreign Trade p ooessing of anrd"dise; (3) day awaptien by do "MW
Tuna Hoard. of mepotrbllky fir the sefdosti Gt, raomrdheepitg and phyal• ;
sal kgwvWw wkhib the acne; (4) tln porlonmenoe o(
Woa otOpentioda
5rpetrr spot-diaka std audio by Qrrmma to dove.. Ine If the %*raw
Once a tote has been solvaNA the grntraa of the tone Is k Pr d1 wP 1 and tNittailitg rceo 1n of the W(Clom.
dive; (S) the atsarbatt byDarroaq of liquid sddu yea in ~m
drc ages for space, Wilk its std aervi~oa w Ab a tone must be rnoud wRteiam a oawre proper perlrer . t) by Me ttpaalor;
rust and roasansbk and" rum Is "kW ro afWtd I • jtarm a~ (6) ~Pah' ~ Clrsooti If woo opeemiom E
l tredmeol to all toss. My trey or p lAVIsl user of a v i ::say which do mot eampiy Wilds the Mats, and rage taioa~dOrrbtsa
lsl 5p . rim! aW
1 aubmk a eampllsW to & Forelgn Trade law Bost and the These ovaau prooeduea. al0mg Wlth W*
E Bosd must m&M a detaminiad n as to wbedler the grantcs Is pm4"%011116110 OA60 rM b "atsee, W pt: lnd "P&M llr
tgentkV the am as a public utuky and wilier its rata and ope im of fbrelgn roads tons std or ,•41 ptrpbma aubact"
dwp we fair and msonsble. without dte Iroaaaky of having a CW aloe oMw physlally
Frc
Tone operations ate ki*d to the Ordivi of the United 111CateClass
SWaQrloms Service and the Paeign Trade Tans Berard. The Ze" Oprnbr
DWrkt Dkeda of Qrbin Rat Only tepraenIA CUSIOnr but k As previously stated, tiro grantee t ,.'-n
with a
ab
Tbj
separate entity, to operate the zone on a 4tylo-dO basis th a
Disirici otherep ew tlve or tic FCrelgn Trade 7 onoBard We WON" Director or Is
each zoo within
Is responsible for r the the anibmement of t.he re- The• zone oposur Is re"ble for the died w *tvblm%
es well ll as a mof tmerts reoetdkeeping, std merdrnadko ate A movement aid warily
Oran the Act and d Regulations for
gxa tech matters as zone forms. Inventory control tyNems.ems ergo within the foreign trade ton. M openly an be a corix rolOn,
rsuch
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District Puwmhlpor vtdwl,butmumlove dspriorapprovalorthe PermLaible ActivitiesWitbisaForelpTrade
Irea Clowwk and mum post a bond to ensure he Zone
proper performance of all requW sctivkia. 7ha cpcmtarvs
i rapoMbilkles and dusky are generally aei out in an operator's MOW ea few limitedexceplon, any 1cim1p ordomN-
i "11194 between the operator and the grads, tyeauae the ik merchandise ruy be torn SM kW a tone a be swt%, sold,
j grankebultimately re"iblefor allsaivitkawithin itszone, exhibited. Won up,repocked,aaembkd,distributed, sorw4
the bad isextremely imp yteritto h a well. The amotw ofthe graded, cka*A mind wkb ;oreige or domestic merdondise,
bad is nepbted bdwcen the apemtar, the District Director or othetwke nwipubled, or maau6ciured. hrob" 10
NO tite Jl1111146C• manipulate, twddsatre, or prone-- mord ardlea in a tons mum
(,eaet>ti Dallas be obtained from the District Director. Prior appovsi by the
Dkarkr Dirt" is required before merdondYe in a no may
TINoperstorisMgnvible fxsupervYNgdladmk+slona, be de ofsd wag tnda (s, wkboeruN Lmlted etuxptbrr
trarrfoa, removab, re=d wepk% manip dulao, tronufactur- prohibited in fowlgrt Irade sons. i '
In& dMdbwion, ealtibition, physical cad prooedurd scarily, R
and c oodkkro of manage In the tone. The NwAud of sure the U L
operstar IN lob to in dw whkh a ptvdeot monger of a range, CUSTOMS TREATMENT
mani;MNiot, or msnudtturkq facility would be equcted to
exercbe. The operator mum give any axioms Am Immedt• Admix" of Menoiiaodbe Islo a 'Lone
ate am= to dx 200 and provide 811 16001`011 Ind other 11114"b
as requested by the Axioms officer wift a rasonabte smlourtt 'the United Seta Axtam , Servtoe regulaiuo providr
of time. The operator b rapaobk f" the safekeeping of doI merdsroise of every de/crI may be Idmkkd into I a
merchemilw and reeartls corrcerming merchrWYe admitted a s stone tmba proNbked by tow. However, am prohtbkad mei;
zone. 7110 opener may dekpe ibis raporxibilky to the zone dond)re may be tlordkkrtaiy admitted Mod to tb
F imp"(ofowtwo(Upods tomare,alegwrd,Irdotlwwbe rcgublknof the applicable "al aplhr. inoidtto adml+
makaN or hendkt the goods x10 the Imemory ream o pertain- membardbe a a sore a Aotoml Pam 214 mum be Mad willl
kV b them. The operator, bowever, remelts Babb to axiom and s permh mud be obakled Isom We Di rki Duster tit 4
in the eved the come importer or owm We to rlperre In an Axtaml. TINoolyeseWbroatodoprior approvallel Avmei r ~'r
<
appapd* manner. The operator mat mxkain on lrtvauary arc oar (1) merdtarl0ia w" Is to mpnrly M a rap ! 31
oontroi and mcordb0eo%syatm N somrdmloe with sp(kabb tier msnlpublion; (2) metellaaalra wl" is to 6e'wAa %d der f. , t
regulmktx, rewN all rooorda required to be mskakod pas in. any earriet N the saes br losmadiste M**r ho tins Artdal t
WS to sale meidex in for a period of ova yarn ofw the Territory (in which am do matrhrtdbe k ims ed a eemaYlN tt'
nxrehla~se b removed from the sons, and mum protest N the Arrant 7eMtayk (3) menirtldtae a hkh b traA~ifatreY
klfomlmitxl to its p10pr~`/ cuslodfoam ueataflorfeed db dam axioms Terr
Y kary tMougA a sane far hnmsdisa jfi~ q
doeure. f
The rata ma mainuN the ttatx a arrkr
~ nd atsWW1 any in rile :ax; (1) doaxrk macfwndia sdmkfd)
picadores sdeglwe to eanra the soc rhy of aleadxedbe b- s zone wid w a permit; Ind (S) nwdrndlse whlc610
ore btdugi 1
dInftsateInocc rdanoewhhappikabkAntatusectrhy l 11110 'be lone dvI oompliaeoe tvkh direct dag proot+
mandrbandgwif *iomTheopet"mum,ternandhrdk dvres bythegmmlor.
merchandin in the am N a safe and malwy manner to mlni•
miser dMp W the meacbanaise, avoid bat" 10 Wooro, and direct del the mast P a1►ew idly u persd of dicer esapkm b tit
meer local, mate and kdetal requiremots trpolicabk too specgic • 71+0 oenlor ofthe zarte tnq fm
RN permiesktnto wilitethis proadaewith theDisvk:IDirecica, ` i
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e application must describe the merchandise lobe handled or any manipuletion or montufaciure of privileged Foreign merchen-
Th dive within a zam;or (3) domeatic merchandise in a zone which
processed and the kind of operation which it will undergo In The has im its idenlily as wch Any darocolic merchandise will be ?
max, lnadertogwlifyforthis proadure,theDislrictDirecla onnylde red tohave ladItsI&ntilyIf"DhWdDirector deler-
wd* determine (1) the merchandise must not be remicted or of mina that it coma be kdeaided positively as dorsWie I JJ
a type which requires Masons eramhatim or domenersarion mendurdlae on hsis tiara exsmkration of the merchandise )
review balsa or opal its artial in a ware; (2) Ihte mendrandise or oanmidcration of any proof that may be strbmtt*& Even
Mod the operations we known well In advoom are predictable
and a". and are relatively fixed In variety by do rAiLm of the do* the dtrtbble value of ttatprivik jed dxei j % Merchandise
is determined
antducted M the site; and (3) the opemor Is an owner amro d Tla a L and wkre t- the merchandise
Wan Na ranter duos a a ratem , the fdlowisrj ~ leans Bm are tXc exekrded
or purdwo of the joods. km do coicu adoet of the dtodable vska of wroprivik jed
Sfatta i of Machatadbe Is s Mu fore IF (a domotak) Merchandise: (1) the Cott of pwoaft in
the woe (krckdhsg labor cwa. (2) the jenlnl exp f" and
s
All muchandbe bcaaed in a scone (except otgrdrndise profit attribsebk to mne operations; (3) eyerma Incurred In
which is considered Mil! In the tatatoma Territory n shown dm tarot that are incidental to pbcktj 119 merdmWYe poked I
above}arrwneaanoffarditkrenratMUdaljntiaas,eachor ready for under Io the Lisboa Territory; and (4) bew,
i AM recelves di faent Clrowrta tteaaoar. The dulprMkms km,xerrce and similar Cow km td of this merchandise Is
{ are: privik jed bvijn um d ndise, nonprivilejed faei jn met- packed ready fa tr thok to the CXMkV s Tara ay. As A Mk*o I
dtandbe, domestic imrchandbe, and tmgearicecd ere duty paid on ttatprlvikjed(aeijnmetcherdiseis e eolfil•
Merchandise. ly computed by mwxiplyin j ft CM or the me rdrrdirt by the I
duty me applicable to the rwdlanebe its the oeldhlM in V Wch
I
Privamw Boreip Menundbe It leave, the ware; e.j, the mat of a oomponaid pal 14att rho
Privikjed fore! jn muctendise baub)en to eppra bemed duty nit oppfimble tithe f RMW proU t. Tim Oft "IN-
and tariff cluaifisMlon socording to its condition and quantity mrnt mednod Applies to merdrndbe pro&wd, is anerchAOeite, Y
M the 11me which dm owner of the merchandise nakes applies- oombhtrtiat of privik jed and ttortpdvile ja
lion rot privileged fore{jrt Malus. The rate of" in effect M whether foroijnr or darnow.
the the of Ilrt application will apply akhoujh the duty is not p IKet andbe '
pay" Brasil the "Khoodbe is nmovod isms ft eons eat ,
plead in Owofm Tertiary. M rppilattan for this agars may Donoeak arena may be jrwed to ranirdrarrdhe:
be made at any tine provided that The mud*WW hat not boa (1) grown, proArotd, at mmaw timed In the U died Stiles on
annipumod of mmaWWW In such a ManOW so a 60 MW Its which aq kMemal4evenwe taxes, if oppiicabit, bwe been psid;`
Wiff doodflr«lon. If rat nacl ardite it expakA Of properly (2) previously impmA caw on which duly wd Ox hu brae
wkhft" for aupplies, o"lli merr or tVk* matubl of vessels paid; or (3) previctrly Mrtend fits of duty one tat 1 No afpUd-
a aircraft, Ifien no duties at taxes are pa'd lion or penny is required for do admbtat of ,r)oaisatk
merchandise to a sore t%o%%upon order by alto (lonuetYrloaar
IVoftPf IvMWd harea MetcrarlraYe of ClrMw* Fortner, no oppilOMlont a pm R Is n1l, y d A1r Iht
Nortpdvilejed forei jn merchandise it dMbbk at I.tc op• manipulation, marwdsctun, edrbitbd, dnetnudioro Or (WN& of
pficableraie M The 11meof Itttranrer fiom do zone irtto Qmtoms domestic merdtitndise ekeept: (1) where it is thimo d dombhied { 11 I
Territory.7his merchandiseconaWso(oneoa'three cwtoria: wkhmerchandisehninjanahetMM$telus;rxC. apes ado y
of theQommisalona of CLMans IbreMb MorclmAdfs~ lily
(1) raeijn merclmndise properly In a tone M does no have
privileged or zore•reM(ided Matua; (2) wome recovered fran r. '
I!
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s bereauntcdioCustoms TerrRory Geeo[quatea,dutyoruxupon DispoeidonandRemovalofMerchandise
compliance with Innsru formalities Galoma regulations coraaln very specific and detailed
Zone-Resbided MercMadise ralulremenu regarding the disposition or removal of merdw-
dire Iran a zone. Arcrul oompliwroe with theme . tguYtkrn, as
Thin swum spplks to merchandise which Is taken Into a well a very detailed planning, is acesaary b maximize the
tone f« the mok purpose of exporluk^ destruction (except maUabk benelka. Exemplesotdispomkionatdremovel include
deawctim of dfatilhd aphis, wino and fermented wait 1t- direct Capon, withdrawal a equipmert, ahpplkb Of rcpai
epv4 cc Storage. ThY type of tiereheadhe may now be mmterWfrevem kcrairoxafl,desIn lonofinerdmtdYeekhef
' removed to Qmonns Terrk«y f« doomIc c«runptionn w9m kride or owide of the zone, the transfer of merchandise from
Axioms Ande the retain to be let the public interest. Zone- one zone to mother, or on entry of the merchandise Into the
restricted macfhandimestunmaybetequesdbyapplication at amoms TeMiory. Purifier, merehmdbe may be Uatcd a
Ih my time but k cannot be mbw4aned atom It Is grained. Tone- removed from a zone even
restricted mad ndime may be considered Owgwmd" for the though k remain fily t physically Wifpresent
wkhkt the mane to take advantage of fivexabk uric raw of
t pwpome of drawbock, wLzhnx*4 bo dint and other "a rcarictiw& With artful plane ft and adeg m
pm Worts of the Taira Ad of 1930 U all appilic" Qrtomm dwuma"k^ very hevmbk results can be achieved through
1 "Itemans for actual exim arc met. the variety of disposition and removal Mc n4ues which ON
winnable.
M eOuladw, ManlrheMr% Euhibidom or
Des>>rncftbar IV ;
my be Woul, 9* Any maid rndise which Is tmwfnny brought into s zone LAW APPLICABLE IN A
1
db ribLd soned, eta enbroken * d, mixed with btiip at FOREIGN TRADE ZONE ~
domestic mere arndise, or otherwise manipulated or mmufmc• 1^
fitted. In order to manipulate, wnt!'adure, cab" or deamy AkhD* a foreign trade zone la oxaaled by gent hom the
merclrndYe wtrhkt a zone, one wwt obtain permtamton b do So 'edam' ,avarraaA, tha forgtp trade ttooe'a nnt an enclave
ham the District Director of OAkime. The Snxxetary of the immune kona fe" or sla Y.w. As a pm*l rule, federal law '
Treaaty may estababh atha guWellnes and proooduom iA arcs not "cinal7 addteaaed N Me Act la "he" b be* W& as
w protect the fe:atue of the United Sulam sane opaatksntm Par emzknpk, bdaal law prwYiatts a fpllabie
M application to manipulate, mrwhawe, exhiblt or a bodanark intrkV*A Y leans beta held, h) Wly b awe
Occurft dramy merchmdbe within a zone om be made an Qatom withil a ow, ;0 (1ad0
40 F fitnpp 47 (D.G NY l97~ i s•'~
Rem 216 by the operator of the zone and such applk:atloo may
contain a "bbe"m appilcationA bb" app'hatton Is a Sure mod local lows Similarly best
fly
1r. A,
however, stale and knornl laws have been held w 60 I1nAW
table
ceoUhdwe w exxtiars far a Ikaited period of tkae the mmipula~
times, mawWm, exhrbk k n «ekwrucdm of mudwndbe ins b forelp trade zone apendom when Ilre lava aft dnMR" ;
~ ,
i aeons a opposed to makitg „r Separate mppiipdon for each pars n>nterftea wife R,<eIp exxarrnerea Pat rample' Is
of in o npkhg activity. A daebl of in application (or Monitor Y*AL 76 INS god 3W, 267 App, Div. 7g3 °
application) by the Dbwrld Dkector Y appalabie to the Porctgn 1'ak me held that Now York Stale liquor Mls{ penmiws were
nd iced o( a vertd« meki~ aW in Trade Zones Board. if any teva m polactlmnt consideration 11he o f rcaaoned that liqiw Iiarwe Wiow b*p W& sera
twdue
are Invohad the Board must adhere to any oklarmY:mtbns Meda
by the Seaewy of the Treaury. harden on font8n ox>rnh Wherc~iherc is no kterlerrrnce
t~
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basis, and mmufacturingar Mini; the finished article !n the
R with commerce, aloe 6w applies. State court )oWktian la a zone, the foreign c mianmw vW be W*ct to dwy at the kfwa
wrongful death anion has been upheld for a death occurring Mbhed product rate,
within a foreign trade :one, as no rederai low hall Specifically
amoved jurisdiction ba rederal oourl. EbU0wInv r Q For example, the curt of New Odeon o"Ished a oub-
w+ak cry M 387 F.2d 343 (5th Cir,1967), Mona for the manufacture of aoel barges by Equitable Equiprned
a EWNa E9u# n ~ M 7
In 1981, Cattgras added Seetlori 35(e) to the Act to
1 aortcrurivel ape lapstteaeneerpLraandefteeu,whkdtreeeaub)eQ G
Imml wire In lae~t txrnmerot do to bmw is a fore of to a 7.5% ad abfare duty. 8arpa, however, are , +cumpt al l my i
L tat tone. 7be legialative history irdicatea bat an duty. Equ orled part or thin M wan tlb by briringin or wt mInk4o do
1 was added b remedy a problem faced by Texan rweign trade s on
s and w e
uhewe ' b
E rondo which were ,Mooned with ad valorem s &a harps a . aand d" ring
f pursuant to Texas contAku bosh bvm" tax the P ~ Ufa Into the daateatc oommeroe of the ( the lkdted
f p opedy Ie piaadon a,e tax anti. ~bo I5(e)prw owl sutea
and local p ertr0lrMa fiamn adwlarerataxan Each o(the ms~ US. automobile mwmha~ tit well
i foe
00111101 goods trod danNxic floods deadnd fa e" whist ~ as a rumba of taaigrl atmdtrtobba laartuhclunm assemble
bated In a (aelgn trade zone, outwW ilea in foreign waft mm b elYnit" Irnated WW
obunion. The tariff on a ocmpfelef out moWle to 23%.
V, whe. a t%a" of kmfp ooaaponents we dutiable m WE- as
Nfiantly W on Matt. All a result, the oulmloNk
ADVANTAGES OF OPERATING IN A monufanuraa arc able to ay an affraaivb 2311 duty rah on
FOREIGN TRADE ZONE larelgttoomporenaatatrtnmobilea
The revot of an inverted Will dwatbm may oleo be ti
defy Defbrnl mod EIhni ,floe avoided in a roreip aMe song. If a ihtie}bd product k dnamb
pot many companies, the rmybe a might " Mrolkrel~ ptmhngtb,tAtforolgntxrepagpMe ,
prMrry I xnefA of a foreign may be brottglm a hKtge tradtaottp h privGegad wpr, and
wade zoro It the deferral of duties for foreign goods Hared is a thereby 1ltain their him" even " anetsbill Willa aft i
faeigrt trade nine prior to odmhsion into domgtic soar KM.
producis. +L,,_.
WW de etimirorion of aaia for taeigrr goods ttrcatght Into o MP^ ism de mild" product b tprlOwd fmo ljte
m end atxportcd, I& It* tmm alone, many of tt~aotrade No Ido dommewe ~nponeK °0AM°ern°' the look ANY Bala ~ 4t
ftdb h* tales n toodit Qefw distrlbwbn hcEYiw in Pro" Swims. kmIP .
hough mail trade It pnohiblo d In it Quota Raft" M Not AMBabk
laetgrt trade More, retallem may also berelh from duty deferral
by watdwu ft in a Imlan trade tone. Impart quow we gerormily not "it" I* polo pmed
In lareigd i ofe Moors It en importer of pmduq aubod b 1
t"m Doty Rain qutots fends the he hall abutted overer quota merdtntdlse, he ! ,
A orgdrfan east awinp is r4W* for mnwhnuras store the tnerchwtdiae b • Rxeign aide Moro rathtt tltalt ra
Of assembkn OeIMg with oompiaed prodtrcr that arc porting the metdwwnm, and "we*iiy brlttg t!rc ~Lj
KAJw merclwdie Into dekk ooneboe of the United 10 an nverted Witt, Le.
oods lnwhd 3tafd
hrgha day nwe than do the MMW product, By "par ro olli ~ >he during the next titan period. ImPmm wfa nape anon be
componan pans into the foreign trade Mona an a roVi kged gain purchases of over4poto merchlndhe our rrmltrly alone
lG
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sequendy txougM into domestic Commerce. MercNodisc that
wne mocMWise in a foreign trade zone udil there Is an is not properly tsbeled a packaged for the US. market may be '
avaibbil°y wader the quota wbring the merchndise intodomea• rebbekd or repacked in a kreIF IN& zone. ~
tic anmmeree.
i In acme inalwas, products subjctz to a grata may be Product Lott W Zoo Proust
i Wouglaba fG Icr zone and subwmUally ftwormed Imp led goods 11W Ihro* IMF or PWJ&N undo. Oat IN into a pr subjea to a "aa. This procedure b go a ba
a ehrinbge may also bem:fk from foreign Inds MM
i, not always available. There we nblt"llal ratrk d^ fa rshA as k Is the meastwod quantify of the goods NO 1661 lave
eaample,onlbeavailstAkyotlhbproooAnfortext ikproducts dxfonigalndezamelhaiwlubeskiWtoduly. fbfexmpk,
vol wkb regard to products mado trams kmponed sugar. kmparmed Dude oft coatskw a W#d& d amount d bra, wakr,
It eeign trade :Dees wUl gnxmerepy have no eflixt on and sediment do IN 111M out by doe renting proems. The
RA tIubjna to vohuwary remmkw agreements (VRAs) as brou& hgoo theera , and d~w'lasu paid aocoool o lye a
ypkally dmikd to specitiany apply to goods ad- W.
mined b a foreipt In* zone. o the vokwm o(the fidalncd pr oats t A similar benefit an be
oWlad akawlkn there is sumo omer type of w$W, evVmMl rt, err
OMdd Dunaatlc Masidtt k
! M in PKVDW*
Ibreyn 006"n" the NO Iwaturwblry traesformed som mopabubobemfkbykK4imporkdpoducb
within aforcipW&zaxkreftrk%ttkyafoeipmerclrn. in nfarclgntnde aoae Dcfsahroaampouarrrfaxibenpiaobd
din.
INIhe fl*MW ppoarct is dorm marked ON a US, product. or destroyed without knawrtq duty on the value of tit cm.
7bb PM h poriaw for companies dedrlag Iona kd Pin
US. produce. U an also bo important when noe-U.& proAM a }
are aubjM b use rmktk*a Pa example, the barges mm dBc- EXP j'
awed by Equitable Equipment (discussed above) were marked ooods tlw are destined fa export am for taaaata pur•
err made in the US, and tfenfon, ellglble to lade and unlade pees treated ON eupakd when they eoler a foreign Inds No
cup at points where bding ls teatrk ed to US. veaeb. wkh zone moriaed nwataa. A domwdc mM AMM ct
i. to addkicn, communist on7twwry components of do orb pro" wkb ~y~y !ot drtw•
wnnwly In ahnned product tae look idamkrasooomwnuntr back upos " to Podl is . tot: P C
oawtrry~loodsr~CttocokmuslworaladdWy. fore,amnpk, export. Damericmaaut+ceutenmayorb1~ipdefel:tlWoOli+ j
slMy be'daiY b„d.
M Qmbms Decwm 7"t, Odume toted tbn it dwmknl Pmew b a fareyp cads mom wlMes 0"
j brought kwo a Ixeip cede tats boon ft sepia lleptAft of but treated a enpaarted for putpoaa of draw6K#
Caro and oubsumewiy rmothrow kw wow maim of the No lovalwy Talc r`
J Iwo ebom heal atrered the Qraowa tsMlay el !ro om bvored
swim column am duty roe. The Act specift ily prolibis am and kraal govermmileta
I km nseesing personal properly tea an (1) any goods kw"
r ~i ludtattitNbtibry' two a foreign rode tram, ofd (3) my do omic pods hW in it
Coeds nor snbjea in loporudon in the United Sfata may, faetgrt Ira& zone whkh will ukiimatsly lea eapprled4 eYbx In
In MUM 11nowsxa, be brought Wo a fwstp Irtda zone where Ihek Wool form at is components of kemi pi'stfed !n ~ 4;
der detkiency may be «alfkd. far crumple, some products faeijn trade zdoe.
t,etas dooa not the nquhme tsof the road, drug,tndommedo b"
sets may be m mmdkkwted In a forelp trade zone and sub
r
17 I11
1
F
+
r
a.A ..a `t .
r• H
Foreign' nmk Zones and MaquihKim is
ibrtidm Irede zones am o(kn used by oompsnica In con.
F
kwion with M"W%&Tn - Medan in-bond manufamurkng +
I faeitkles. Imported compontras tlrl win be toed in rte ma•
( qt bdnn may be pared duty fret in a foreign trade tone, and t
Me finYed predua may be soared duty tree in de farolpt fade
acne rf k o re-enlers
pon dommic-
defoax Ace a vault, duly on W&Aiorger & Prke
the foreign oanponent may be e deferred until spa both ft
Mexico" nwoufadurktg process end the comoled podiq Ms
been dbtribukd In de U.S. Pbm* fade txnea my also be International Practice Group w
used b allow pmfmm lei Oereralhed Spiess of hekrwoea F
Casp") famed for impoew components, since as? teat.
OWN 11 mD*h an adn Pro" only or", an inpaledp a&M i
brougM bo a kalli n fade tone pft so ka tranefm to a
nrgtiladoes wUl be eligihie for OSp treatment an Ias re-aMry
k4to US. from the megrdlodors. Some companies nlso kap fl `
kvw taria in !pets" I" loneo u bo*W Inventory, b poems
praedion &VIM Mesban Lbor disputes or trrnpMation U you dwt c any addkbnl b onmailon abta¢, Iatalpti 1 ?
pomobk+ne• { bade tines, or wkh ti doom your spukifk aku81ba b omiyae t,
W bwrplow mod BY Aahte A,*
y pam
V 1. He>per" at, E r lg
CONCLUSION C ;p
Poreitrrr Thole Zones we a very effective way trot tom- t
ponies boated In the UnWd Sake to keep m"Khauft and apt d trba
tlooNMtkw
pnotxasfng f cilldes located wkldn dk Unikd sores radar dun
nbtoad, and 8101 canpete wkh farxlp oompnrea at a" even I 9M /sit fflted
playing ftkt Wish cwlW Owing and whoanoe frail f>rllas,'fr,,is "a
gAlJfkd arpaknetut ptofatloo la, alpdfkw aavlnp an be 1h1eFAaae (214) 6Sl~JOO I ;Y ' 'w
ahleued end, In pane imoancet, new market for exinbg Tcbhx (214) 651.42!0
po" an be deve4M, Tbkt y01M
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I e'CI? Nof DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 70201 / TELEAIfONE (811) SOS -8130
I Of"Ics of rho Cory Ahhapof Z :
M E M O R A N D U M
7 r i ~
1 Y I1 z i I r tl
TO, Mayor and Members Of the City council
PROM: Rick Svehla, Deputy City Manager
r
+
DA78.' April 19, 1991
> 8V9JEC't: 8oreign Trade Zone Add9Adun
G ` S
i he cbneab,tie, t
forgot to ask Botty to include infarsation about
r r
=5 betvesn Perot and the County and DIOD: It is our underetandieq
that the County Will c0nsid6r this on their agenda :•ne
r r, r
} r Tueeday~ b18D had not been contacted by the perOt': Qroupl 1fo
will adv you ot..tha County's action Tubsday oVbning,
isk
r , a
!I 6 i'. Gt+,i °rqd'~'
/fIr
r" h ~ Q 1 I I
' ~ , I f ~r Ir -i
v, Rick Svehla zl s~,
yr;; iR Deputy City Manager
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