Imágenes de páginas
PDF
EPUB

The Omnibus Budget Reconciliation Act of 1987 required the Commissioner of Customs to notify the House Ways and Means and Senate Finance Committees at least 180 days prior to taking any action which would: (a) result in any significant reduction in force of employees by means of attrition; (b) result in any reduction in hours of operation or services rendered at any customs office; (c) eliminate or relocate any customs office; (d) eliminate any port, or significantly reduce the number of employees assigned to any customs office or any port of entry.

Customs modernization.-The Customs Modernization Act (title VI of the North American Free Trade Agreement Implementation Act) represented the most extensive set of changes to the customs laws since the Customs Procedural Reform Act of 1978. The major provisions of the Act removed archaic statutory provisions requiring paper documentation, and provided authority for full electronic processing of all customs-related transactions under the National Customs Automation Program (NCAP) (section 631). In return for waiving paperwork requirements, importers were required to maintain and produce information after the fact. Section 631 further sets forth the NCAP goals of ensuring uniform importer treatment, facilitating business activity, while improving compliance with the customs laws. It authorized new automation initiatives for remoteentry filing and periodic entry and duty payment, and required adequate planning, testing, and evaluation of all new automated systems before implementation.

The Act provided for accreditation of independent laboratories and public access to all Customs rulings and decisions. It also provided additional projections for importers by reforming Customs' seizure authority under section 596(c) of the Tariff Act of 1930 (19 U.S.C. 1595a(c)); established a new statute of limitations on duty violations, provided procedural safeguards for regulatory audits; allowed judicial review of detentions; clarified the conditions under which duty drawback claims may be made; and authorized payment for damaged merchandise for non-commercial shipments.

Reorganization.-Pursuant to section 301 of the Customs Procedural Reform and Implementation Act of 1978 (19 U.S.C. 2075), on September 30, 1994, the Commissioner of Customs notified the House Ways and Means and Senate Finance Committees of his intention to implement a major reorganization of Customs commercial operations, including concentrating services at existing port facilities, reducing Headquarters staff, eliminating regional and district offices, and establishing Customs Management and Strategic Trade Centers.

Antiterrorism.-The Comprehensive Antiterrorism Act of 1995 (Public Law 104-132), designed to prevent and punish acts of terrorism, makes it unlawful to import plastic explosives which do not contain detection devices. The Act amends the Tariff Act of 1930 to facilitate Customs interdiction of these plastic explosives under its seizure and forfeiture authority.

Foreign Trade Zones

The Foreign Trade Zones Act of 1934,63 as amended, authorizes. the establishment of foreign trade zones. A foreign trade zone (FTZ) is a special enclosed area within or adjacent to ports of entry, usually located at industrial parks or in terminal warehouse facilities. Although operated under the supervision and enforcement of the Customs Service, they are considered outside the customs territory of the United States. With certain exceptions, any foreign or domestic merchandise may be brought into a foreign trade zone for storage, sale, exhibition, break-of-bulk, repacking, distribution, mixing with foreign or domestic merchandise, assembly, manufacturing, or other processing. Foreign merchandise imported into an FTZ is not subject to duty, formal entry procedures or quotas unless and until it is subsequently imported into U.S. customs territory.

The framework that governs the establishment and operation of FTZS has three principal components. First, the Foreign Trade Zones Act of 1934 (the Act) authorizes the establishment of FTZs and, as amended in 1950, allows manufacturing in FTZs.64 Second, regulations, promulgated by both the Customs Service 65 and the Department of Commerce,66 expand on the Act. A 1952 amendment to the regulations provided for the establishment of "subzones" in addition to general purpose zones. Third, the decision in Armco Steel Corp. v. Stans in 1970 validated the use of zone manufacturing to avoid customs duties and interpreted several key provisions of the Act.67

The original purpose of the Foreign Trade Zones Act of 1934 was to expedite and encourage foreign commerce. Initially, FTZs were little more than transshipment or consignment centers for the storage, repackaging, or light processing of foreign goods pending reexportation. The 1934 Act prohibited the manufacture and exhibition of goods in FTZs. In 1950, however, Congress removed this prohibition and added manufacturing to the list of activities permitted, and authorized exhibition in zones.

The amendment to the FTZ regulations in 1952 that provided for the establishment of subzones is important to manufacturing and assembly operations in zones. The essential distinction between the two types of zones is that individual subzones are generally used by only one firm, whereas there is no limitation on the number of firms that can operate in a general-purpose zone. Subzones were established to assist companies which were unable to relocate to or take advantage of an existing general-purpose zone.68 Under the regulations, only a grantee of a previously approved general zone may apply to establish a subzone.

Authority for establishing these facilities is granted to qualified corporations, or political subdivisions, who must submit applications to the Department of Commerce's Foreign Trade Zones Board, comprised of the Secretary of Commerce (Chair), and the Secretary

63 Act of June 18, 1934, ch. 590, 48 Stat. 998, 19 U.S.C. 81a-81u. 64 Boggs amendment of 1959, ch. 296, 64 Stat. 246, 19 U.S.C. 81c.

65 19 CFR 146.0-48 (1980).

66 15 CFR 400.100-1406 (1980).

67 431 F.2d 779 (2d Cir. 1970), affg 303 F. Supp. 262 (S.D.N.Y. 1969). 68 15 CFR 400.304 (1983).

of the Treasury 69 Public Law 104-201, authorizing appropriations for fiscal year 1997 for the military activities of the Department of Defense, amended the Foreign Trade Zones Act to remove the Secretary of Army from membership on the Board. The Board's regulations set forth the basic requirements for applying and qualifying for an FTZ. The statute provides that every officially designated port of entry is entitled to at least one FTZ. Public hearings are often held by the Board staff in the locale involved. While most applications are non-controversial, occasionally domestic industries or labor that are sensitive to imports will oppose a subzone application. The sharp growth of manufacturing in subzones, particularly by the automobile industry, has led to increased criticism of the practice by U.S. parts producers, who are concerned that the practice may reduce their effective tariff protection.

Section 3, which contains the basic substantive provisions of the Act, allows merchandise to be imported into FTZS without being subject to U.S. customs laws. The section regulates the tariff treatment of FTZ merchandise according to its status as foreign or domestic, and as privileged or non-privileged.

One may apply for privileged status for foreign merchandise in an FTZ, provided the merchandise has not yet been manipulated or manufactured so as to effect a change in its tariff classification. Foreign merchandise that is not privileged, recovered waste, and merchandise that was originally domestic but can no longer be identified as such, are deemed to be non-privileged foreign merchandise. Domestic merchandise that would otherwise have been eligible for privileged status but for which no application was made is considered non-privileged merchandise.

The status of merchandise becomes significant when it enters U.S. customs territory. Customs appraises and classifies privileged foreign merchandise to determine the taxes and duties owed according to the condition of the merchandise when it enters an FTZ. The importer pays the previously determined taxes and duties when bringing the merchandise into U.S. customs territory regardless of any manufacturing or manipulation of the goods with other foreign or domestic privileged merchandise.

In contrast, merchandise that is composed entirely of, or derived entirely from, non-privileged merchandise, either foreign or domestic, or of a combination of privileged and non-privileged merchandise, is appraised and classified according to its condition when constructively transferred out of an FTZ and into U.S. customs territory. Thus, the duty and taxes payable on non-privileged or combined merchandise are those applicable to its classification and value when it enters U.S. customs territory and not when it enters the zone. This distinction is an important potential advantage of zone-based operations.

The United States-Canada Free-Trade Agreement Implementation Act 70 amended section 3(a) of the Foreign Zones Act to provide that, with the exception of "drawback eligible goods," goods withdrawn from a foreign trade zone will be treated as if they are withdrawn for consumption in the United States, thus subject to appli

69 19 U.S.C. 81a(b) (1976). The jurisdiction and authority of the Board are set forth in 15 CFR 400.200-203 (1980).

70 Public Law 100-449, approved September 28, 1988.

cable customs duties. The North American Free Trade Agreement Implementation Act 71 further amended section 3(a) to provide that "goods subject to NAFTA drawback" and withdrawn from a foreign trade zone will be treated as if they are withdrawn for consumption in the United States, and are thus subject to the applicable customs duties. The customs duties may be reduced or waived in an amount that is the lesser of the customs duties paid to the other NAFTA country upon import of the manufactured goods. The amendment also provides for the same treatment should Canada cease to be a NAFTA country and the suspension of the United States-Canada Free-Trade Agreement is terminated.

In addition, an amendment to section 3 with respect to the calculation of relative values in the operations of petroleum refineries in a foreign trade zone was enacted in section 9002 of the Technical and Miscellaneous Revenue Act of 1988.72

Final revised regulations-the first changes to those regulations since 1980-were issued by the FTZ Board on October 8, 1991 (15 CFR Part 400) clarifying criteria for the establishment and review of FTZ (including subzone) operations. Among other provisions, the revised regulations authorize the review of zone and subzone operations to determine whether those operations provide a net economic benefit to the United States.

Deferral of duty on certain production equipment. The Miscellaneous Trade and Technical Corrections Act of 1996 (Public Law 104-295) amended section 3 of the Foreign Trade Zones Act to permit the deferral of payment of duty on certain production equipment admitted into FTZs. The provision allows for duty on imported production equipment and components installed in a U.S. FTZ to be deferred until the equipment is ready to be placed into use for production. By allowing a manufacturer to assemble, install, and test the equipment before duties would be levied, this change is meant to encourage production in FTZs.

71 Public Law 100-182, approved December 8, 1993. 72 Public Law 100-647, approved November 10, 1988.

« AnteriorContinuar »