Foreign Trade Zone Pilot Agreements

Goods transferred from the CBP area to an area for the storage or execution of a legal obligation to export or destruction are deemed to be exported and cannot be returned to the CBP area for consumption, unless the Foreign Trade Zones Board decides that their return is in the public interest. The status of goods transferred under these conditions in an area is „limited to the zone.“ Restricted goods must not be handled, except to destroy, or produced in an area. As in the case of a preferred foreign status, the zone user must apply for blocked zone status on the corresponding CBP form. An Export Processing Area (EPC) is a specific type of CPE set up by its governments in developing countries to promote industrial and trade exports. According to the World Bank, „an export processing area is an industrial zone, usually a fenced area of 10 to 300 hectares, specializing in export production. It provides businesses with free trading conditions and a liberal regulatory environment. Its objectives are to attract foreign investors, employees and buyers who can facilitate access to the global market for some of the economy`s industrial products and thus create jobs and currencies. [8] Most VZs are in developing countries; Brazil, Colombia, India, Indonesia, El Salvador, China, Philippines, Malaysia, Bangladesh, Nigeria, Pakistan, Mexico, Dominican Republic, Costa Rica, Honduras, Guatemala, Kenya, Sri Lanka, Mauritius and Madagascar all have CPE programs. [9] In 1997, 93 countries created export processing zones employing 22.5 million people, and five years later, in 2003, CPEs employed 43 million people in 116 countries. [9] Foreign and domestic goods may be transported to operating areas that are not prohibited by law, including storage, exhibition, assembly, manufacturing and processing. All area activities are subject to public interest verification. The sites in the Outer Trade Area are governed by the laws and regulations of the United States and the states and communities in which they are located. The Kuwait Free Trade Area (FTZ) was officially launched in 1999 to develop businesses and attract the export industry.

The area is located in the western part of the commercial port of Shuwaikh. It is the only free trade area in the country. The product may remain in an area indefinitely, whether it is subject to customs duties or not. A foreign trade zone (FTZ) can be a very useful tool for a company active in foreign trade. This is a designated territory where foreign and domestic goods are generally considered by the U.S. government to be outside U.S. customs territory. Goods can be imported into a FTZ without formal imports, import quotas or most other import restrictions. Tariffs and excise duties are not collected until the product is marketed in the United States. Businesses moving to an area can benefit from a number of regulatory and tax incentives, such as the right to start a business, the right to import parts and equipment without customs duties, the right to retain and use foreign exchange income, and sometimes tax or land benefits. There may also be other incentives for customs control methods and reporting requirements.