Background

U.S. Customs and Border Protection is making several modifications to its ongoing test of submitting electronic foreign-trade zone admission applications (e214).

Zone ID number. CBP assigns unique identifiers for all FTZ site locations. The length of the alphanumeric zone identification number is being expanded from seven to nine digits to accommodate additional subzones and sets of general purpose zone acreage as well as additional FTZ site locations associated with a subzone or set of GP zone acreage.

Modification requests. Currently, for modifications to FTZ admission data, an admission must first be deleted and then a complete replacement of the admission must be filed. This process causes a break in custody by generating a new admission date, which could subject inventory to higher duty rates that become effective subsequent to the original admission date. Accordingly, CBP is allowing for “replace” requests to modify an admission while retaining the original admission date.

Correction requests. Changes to an admission that has been fully accepted into the zone (via a  process known as concurrence) are not currently permitted in this test. However, replacing an entire admission is a cumbersome process that affects other transactions associated with the bills of lading on the initial admission, which could lead to delays in cargo movement. As a result, CBP is adding the ability to request a post-admission correction that will allow for modification after the admission has been concurred and fully accepted into the zone operator’s inventory and recordkeeping system. This process does not affect the bond liability that would otherwise exist absent the correction.

Permit to transfer cancellation. A PTT allows the transfer of cargo from one bonded location in a CBP port of entry to another bonded location within the same POE. In the case of the e214 processes, the bonded movement is only to an FTZ site. However, PTT transactions cannot currently be cancelled, which makes it difficult to facilitate instances where diversions of cargo to other designated locations is required for purposes such as inspections or to effectuate a withhold release order. CBP has therefore added new functionality allowing for PTT cancel transactions by filers or CBP.

The zone number expansion will be implemented as of Jan. 25, 2021. The rest of the modifications will become operational as of Sept. 26.

For more information on how FTZs can benefit your business, please contact Lenny Feldman at (305) 894-1011.

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