September 25, 2001
Memorandum For Foreign-Trade Zone Grantees
From: Dennis Puccinelli
Executive Secretary
Subject: 1. NEW ADDRESS
2. FTZ ANNUAL REPORT - FY 2001
3. OIL REFINERY REPORT GUIDELINES
4. EXPORT FIGURES; REPORTING MATTERS; CENSUS; WEB PAGE
1. NEW ADDRESS
The office of the Foreign-Trade Zones staff has moved from the Herbert Clark Hoover Building - Room 4008 to the Franklin Court Building - Suite 4100W. The annual report and other submissions to the Board should be sent to one of the two addresses described below. Please note that the two addresses -- one for U.S. mail and one for express/package delivery -- have different zip codes. U.S. mail will be sent to the main Commerce building and sent by courier to us. Visitors should come to the first address, which is about 7 blocks north of our previous address.
1. Submissions Via Express/Package Delivery Services:
Foreign-Trade-Zones Board
U.S. Department of Commerce
Franklin Court Building - Suite 4100W
1099 14th St. NW, Washington, D.C. 20005
2. Submissions Via the U.S. Postal Service:
Foreign-Trade-Zones Board
U.S. Department of Commerce
FCB - Suite 4100W
1401 Constitution Ave. NW
Washington, D.C. 20230
2. ANNUAL REPORT
Again, I want to express our appreciation for the effort most grantees have been making to submit their reports on time, and to respond to our follow up questions. We ask for your continued attention to this requirement so that we can meet our goals for timely review, publication and distribution of our report to Congress and to zone grantees. Further, compliance in this area is needed if we are to respond to your applications and requests in a timely manner.
Therefore, I am writing to remind you about the annual report that is due to the FTZ Board from each zone grantee. The deadline for the FY 2001 report is the usual end-of-January date (1/31/2002). A copy of the current format is enclosed. It is the same as the one we sent you last fall. A revised format, which is pending OMB approval, will be used next year. The current format is available on the FTZ Board Web site along with application guidelines and other information on FTZ matters. (The revised format, which is to be used for the 2002 year report, will be posted on the web site when it is approved later this year.) The FTZ web address is:
http://ia.ita.doc.gov/ftzpage/
If you wish to obtain a copy of the annual report format from our Web site, we suggest you download the WordPerfect version and apply the Times New Roman font - 12 point. (If you decide to use the text version, we suggest that you convert it to the Times New Roman font so that it will conform to the original format.) We ask that each grantee pass the report format on to each of its subzones and operators. We also ask that you provide subzones and operators sufficient time (i.e., 60 days) to provide complete and accurate information.
Our requirements for the annual reports we receive from each zone grantee have been reduced in recent years. In addition to shortening the format, we moved the due date from the year-end holiday period to January 31 to give grantees more time, and we will consider requests for time extensions (usually 30-60 days) based on special circumstances. Such requests can be made by fax (202 482-0002) or e-mail (Dennis_Puccinelli@ita.doc.gov or Claudia_Hausler@ita.doc.gov).
3. OIL REFINERY REPORT GUIDELINES
Attached to the annual report format are guidelines for oil refinery subzones, which would replace the standard Part V of the annual report format. The guidelines are designed to assist oil refinery subzone operators in preparing the report and to improve the overall quality of the information received. They were developed in close consultation with the representatives of oil refining subzones.
4. EXPORT FIGURES; REPORTING MATTERS; CENSUS; WEB PAGE
The following is a discussion regarding some technical issues for reporting the movement of merchandise figures in the annual report. As we mentioned last year, export figures should be based on the zone operator’s knowledge of destination. This means that, for FTZ reporting purposes, grantees or operators, to the best of their knowledge, should report as exported any merchandise that is eventually exported, even though the merchandise may leave the zone on a consumption entry prior to export. We are aware that some subzone operators are electing to make entry for consumption for duty-free products when they leave the zone, even though some products are later exported. If the products are later exported by the company or an affiliate, or used as the basis for a drawback claim, the products must be reported as exports, under the "Forwarded, To Foreign Countries" heading. Such data may be estimated or derived from existing annual data. In general, the figures for the FTZ annual report can be derived from existing data, including data available from an operator’s Customs inventory system, which tracks foreign status merchandise, and existing company information.
The narrative section of the report has been getting greater attention because it is the section where zones and subzones describe how FTZ status is contributing to the positive economic effects that were the basis of approval. I urge you to focus on this section. You may answer the questions in a single narrative format (that can be attached to the report) that can be updated year to year. This may be easier than answering each question individually.
As we have mentioned previously, statistical data on merchandise admitted to zones must be reported on the CF-214A, and all merchandise exported must be reported on the Shippers Export Declaration (SED). I want to draw particular attention to the Census Bureau’s electronic reporting formats, which, I believe, will not only improve the accuracy of our trade data but also improve reporting efficiency for zone users. For example, Customs and Census have developed an internet-based SED reporting system as part of the Automated Export System (See www.aesdirect.gov). If you have any questions on the Automated Foreign Trade Zone Reporting Program, please contact the Data Collection Coordination Branch at 301-457-2259. If you have questions on the Automated Export System, please contact Dorothy Brown on 301-457-6855. If you have any questions on Census data products, please contact Adele Hilton on 301-457-2311.
Subzones are subject to the lapse provision individually. We are asking that grantees track their subzones with respect to the lapse provision and report to us any subzones that become affected by the lapse provision. (Contact: Claudia Hausler (202) 482-2862). We also ask that you list such subzones that have lapsed in your annual report.
We have further improved our web page by adding a section for grantees. This menu item, called "Grantee Information Page," is intended to assist FTZ Grantees in implementing and operating their respective foreign-trade zones in a manner that effectively accomplishes community economic goals, serves the needs of the business community and fulfills the responsibilities of the grantee as established in the FTZ Act and Regulations. It was developed in consultation with representatives of zone grantees.
FTZ Staff. For those of you that have not had the opportunity to visit the FTZ Board staff recently, I would like to provide you with an updated list of our staff members. Our e-mail addresses are first and last names, separated with an underscore ("_"), plus "@ita.doc.gov".
