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Understanding the Foreign Trade Zones Board: Authority and Functions
Definition & Meaning
The Foreign Trade Zones Board is a federal board established under the Foreign-Trade Zones Act of 1934. Its primary role is to review and approve applications for the creation and operation of foreign-trade zones, which are designated areas where goods can be imported, handled, and processed without the usual customs duties. The Board ensures that these zones serve the public interest and regulates their administration, including the rates charged by zone grantees. Before any merchandise can enter a foreign-trade zone, it must be activated and approved by Customs and Border Protection (CBP).
Table of content
Legal Use & context
The Foreign Trade Zones Board plays a crucial role in international trade law and customs regulations. This term is relevant in areas such as trade compliance, customs law, and economic development. Businesses seeking to establish a foreign-trade zone must navigate various legal procedures, which can often be managed using legal templates from US Legal Forms. These templates can help streamline the application process and ensure compliance with federal regulations.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A manufacturing company applies to the Foreign Trade Zones Board to establish a foreign-trade zone to reduce tariffs on imported components. The Board reviews the application and grants approval, allowing the company to import goods duty-free while they are processed in the zone.
Example 2: A logistics firm operates a foreign-trade zone that facilitates the storage and distribution of imported goods. The Board inspects the operations to ensure compliance with regulations and reviews the firm's annual reports.
Relevant laws & statutes
The key statute governing the Foreign Trade Zones Board is the Foreign-Trade Zones Act of 1934. Additionally, relevant federal regulations can be found in Title 15 of the Code of Federal Regulations, particularly 15 CFR Part 400, which outlines the Board's authority and procedures.
Comparison with related terms
Term
Definition
Difference
Foreign Trade Zone
A designated area where goods can be imported and processed without customs duties.
The Board oversees the establishment and regulation of these zones.
Subzone
A specific area within a foreign-trade zone with distinct operational rules.
Subzones require separate approval from the Board for specific activities.
Common misunderstandings
What to do if this term applies to you
If you are considering establishing a foreign-trade zone, start by reviewing the requirements set forth by the Foreign Trade Zones Board. You may want to consult with a legal professional to ensure compliance with all federal regulations. Additionally, explore US Legal Forms for templates that can assist you in the application process, making it easier to navigate the necessary legal steps.
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