HomeMy WebLinkAbout22-097RESOLUTION NO. 22-097
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE
COUNTY, FLORIDA, AUTHORIZING THE ADOPTION OF A NEW ZONE SCHEDULE
UNDER THE ALTERNATIVE SITE FRAMEWORK FOR FOREIGN -TRADE ZONE #218
WHEREAS, the Board of County Commissioners of St. Lucie County, Florida, has made the
following determinations:
1. On June 18, 1934, Congress approved an Act "to provide for the establishment,
operation, and maintenance of foreign -trade zones in ports of entry of the United States to
expedite and encourage foreign commerce and for other purposes" (hereafter the Foreign -Trade
Zones Act").
2. On October 24, 1996, in accordance with the Foreign -Trade Zones Act and
regulations relating thereto, the Central Florida Foreign Trade Zone, Inc., subsequently renamed
Treasure Coast Foreign Trade Zone, Inc., received approval from the Foreign -Trade Zones Board
("Board") for a Grant to establish, operate and maintain Foreign -Trade Zone No. 218 in Florida,
as published in 61 Fed. Reg. 58036 on November 12, 1996.
3. On February 22, 2022, the Foreign -Trade Zones Board approved the County's
application for reorganization of FTZ No. 218 under the Alternative Site Framework.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF ST. LUCIE
COUNTY AS FOLLOWS:
1. The Board, as the governing body of St. Lucie County, Grantee of Foreign -Trade
Zone No. 218, hereby authorizes adoption of a new Zone Schedule as presented.
2. The Board further authorizes staff to transmit the new Schedule to the Foreign -
Trade Zones Board.
3. This Resolution shall take effect on the date of adoption.
After motion and second, the vote on this resolution was as follows:
Commissioner Sean Mitchell, Chair
AYE
Commissioner Linda Bartz, Vice Chair
AYE
Commissioner Chris Dzadovsky
AYE
Commissioner Frannie Hutchinson
Absent
Commissioner Cathy Townsend
AYE
PASSED AND DULY ADOPTED this 7T" day of June 2022.
BOARD OF COUNTY COMMISSIONERS
ST. LUCIE COUNTY, FLORIDA
BY:
DEPUTY CLERK J�� ��% CHAIR
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�F APPROVED AS TO LEGAL FORM AND
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AsS-T• COUNTY ATTORNEY
Exhibit A
ZONE SCHEDULE
RULES, REGULATIONS, RATES, AND CHARGES APPLYING AT:
ST. LUCIE COUNTY
FOREIGN -TRADE ZONE NO. 218
FORT PIERCE, FLORIDA
Operating under granted authority by the Foreign -Trade Zones
Board, Washington, D.C., to St. Lucie County
ISSUED: June 7, 2022
June 7, 2022
St. Lucie County
Miller & Company P.C.
EFFECTIVE: June 7, 2022
ISSUED BY: St. Lucie County
TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................... i
ZONEGRANTEE............................................................................................................ ii
DESCRIPTION OF FOREIGN -TRADE ZONE NO. 218 ............................. "'
INTERNAL RULES/REGULATIONS AND POLICIES FOR THE ZONE ..................... viii
SECTION I - DEFINITION OF TERMS...........................................................................1
SECTION II - OVERVIEW OF FOREIGN -TRADE ZONES ............................................. 5
SECTION III - APPLICATION OF RULES, REGULATIONS AND RATES....................6
Section 111.0 — Application and Interpretation of Foreign -Trade Zone No. 218, Zone Schedule ...... 6
Section 111.1 — Regulations - Foreign -Trade Zones Board............................................................... 6
Section 111.2 — Regulations - United States Customs and Border Protection ................................... 6
Section 111.3 — Public Utility Standard............................................................................................... 6
Section 111.4 - Uniform Treatment Standard..................................................................................... 7
SECTION IV - OPERATION OF ZONE........................................................................... 8
SectionIV.0—Activation.................................................................................................................... 8
Section IV.1—Lapse/Sunset Provision..............................................................................................8
Section IV.2—Manipulation, Production, Exhibition of Merchandise................................................8
Section IV.3—Merchandise Permitted in a Zone..............................................................................9
Section IVA—Retail Trade Within Zone............................................................................................9
Section IV.5—Scope of Authority...................................................................................................... 9
Section IV.6—Sponsor of New Zone or Subzone...........................................................................10
Section IV.7—Termination-Accrued Obligations/Survival...............................................................10
SECTION V - GENERAL RULES AND REGULATIONS.............................................11
SectionV.0—Agreements...............................................................................................................11
Section V.1—Government Agencies...............................................................................................11
Section V.2—Governmental Licenses.............................................................................................11
Section V.3—Public Interest, Health and Safety.............................................................................11
Section VA —Regulations - General................................................................................................11
Section V.5—Regulations - Zone....................................................................................................12
SECTION VI - SPECIAL RULES PERTAINING TO MERCHANDISE ..........................13
Section VI.0—Grantee Knowledge..................................................................................................13
Section VI.1—Handling of Merchandise..........................................................................................13
SectionVI2—Marking.....................................................................................................................13
Section VI.3—Record Deficiencies..................................................................................................13
Section VIA —Record Retention......................................................................................................14
Section VI.5—Reports to Governmental Agencies.........................................................................14
SectionVI.6—Right of Entry ............................................................................................................14
GRANTEECHARGES..................................................................................................15
St. Lucie County i June 7, 2022
ZONE GRANTEE
ZONE SCHEDULE
GRANTEE: ST. LUCIE COUNTY
GENERAL OFFICES
Grantee Office:
St. Lucie County
3000 Curtis King Boulevard
Fort Pierce, Florida 34946
Contact Person: Mr. Stan Payne
Telephone Number: 772-462-1718
St. Lucie County ii June 7, 2022
DESCRIPTION OF FOREIGN -TRADE ZONE NO. 218
Pursuant to a Grant issued by the Foreign -Trade Zones Board, Washington D.C.,
as Board Order No. 851 on October 24, 1996 and Board Order No. 2124 on February 22,
2022, the St. Lucie County., under provisions of the Foreign -Trade Zones Act (19 U.S.C.
81 a-81 u), Foreign -Trade Zone No. 218, has issued the following Zone Schedule on rules,
regulations, rates and charges.
Foreign -Trade Zone No. 218 is a public utility under Foreign -Trade Zones Board
Regulations. The zone has adequate electric power, water, waste disposal,
communications, and access to all modes of transportation.
Foreign -Trade Zone No. 218, has Site 1 located at the St. Lucie County
International Airport that consists of 1,063 acres located at 300 Curtis King Boulevard in
Fort Pierce, Florida; Site 2 located at the King's Highway Industrial Park that consists of
102 acres located at King's Highway and Commercial Circle in Fort Pierce, Florida; Site
3 located at the St. Lucie West Commerce Park that consists of 315 acres located at 590
N.W. Peacock Boulevard, Port St. Lucie, Florida; and Site 4 located at the Crossroads
Commerce Park that consists of 15 acres located at State Rd. 70 and 1-95 in Fort Pierce,
Florida. Individual companies may apply for a usage -driven or subzone site under the
Alternative Site Framework if they are located within St. Lucie, Indian River, and
Okeechobee Counties.
St. Lucie County III June 7, 2022
INTERNAL RULES/REGULATIONS AND POLICIES FOR THE ZONE
St. Lucie County viii March 2022
SECTION 1 - DEFINITION OF TERMS
Act —The Foreign -Trade Zones Act of June 18, 1934 (48 Stat. 998 - 1003; 19
U.S.C. 81 a-81 u), as amended by Public Law 397, 73rd Congress, approved June 18,
1950. (15 C.F.R. § 400.2(a)).
Alternative Site Framework-(ASF) means a three-part application that
transforms a general-purpose zone by creating a service area where a "usage -driven"
site can be established in thirty (30) days or a traditional "magnet" industrial park site can
be established in six (6) to ten (10) months if certain criteria are met.
Antidumping/Countervailing Duty—FTZ Board Regulations require that any
merchandise admitted to a zone that is subject to an AD/CVD Order must be placed in
privileged foreign status. (15 C.F.R. § 400.14(e)(1)).
Board —The Board means the Foreign -Trade Zones Board created by the Act to
carry out the provisions thereof. The Foreign -Trade Zones Board shall consist of the
Secretary of the Department of Commerce, who shall be the chairman, and the Secretary
of the Treasury. (15 C.F.R. § 400.2(d))
Customs Territory —The territory of the United States in which the general tariff
law of the United States applies but which is not included in any Foreign -Trade Zone.
Domestic Merchandise —Domestic sourced or foreign sourced previously duty
paid merchandise. See Status of Merchandise herein.
Foreign Merchandise —Imported merchandise that has not been properly
released from the U.S. Customs custody in the Customs territory of the United States.
See Status of Merchandise herein.
Grantee —The Grantee of Foreign -Trade Zone No. 218 is the St. Lucie County., an
organization to which the privilege of establishing, operating, and maintaining a foreign -
trade zone has been granted by the Foreign Trade Zone Board.
Harmonized Tariff Schedule of the U.S. (HTSUS) Number —The ten -digit number
used to identify all imported and exported merchandise. The complete text is available
from the U.S. International Trade Commission on its website.
Interim Production Approval -Existing zone site may secure interim production
approval with Customs concurrence and approval by the Foreign -Trade Zones Board.
This does not require the entire four (4) months that a normal Production Notification
Application requires. However, the Customs letter must indicate that the Operator is
activated or could be activated soon.
St. Lucie County 1 March 2022
Magnet Site means sites intended to attract multiple potential FTZ
operators/users.
Manipulation —Means breaking up, repacking, assembling, distributing, sorting,
grading, cleaning, mixing with foreign or domestic merchandise, or other processing
which does not constitute production.
Manufacturing —This is the old term used by the Foreign -Trade Zones Board for
activity involving the substantial transformation of a foreign article resulting in a new and
different article having a different name, character, use, and HTS classification. It is now
referred to as production. Authority for such activity in a zone must be secured from the
Foreign -Trade Zones Board and authorized on a CBP Form 216 by the U.S. Customs.
Merchandise —Merchandise includes goods, wares and chattels of every
description except prohibited merchandise. (Building materials, production equipment,
and supplies for use in operation of a zone may not be considered "merchandise.")
OFIS- This is the Online FTZ Information System that includes information on each
zone. It can be accessed through the FTZ Board web site. All annual reports are now
filed electronically through OFIS.
Operating Agreement —The agreement between the Zone Operator and the Zone
User, or the Zone Grantee and the Zone Operator describing rights, responsibilities, and
financial considerations.
Port Director, U.S. Customs —The Port Director of the U.S. Customs located in
Fort Pierce, Florida, or his representative.
Production- This means traditional manufacturing activity and "kitting" activity
where the new HTSUS classification applies to the finished product. The Foreign -Trade
Zones Board uses this term to cover both manufacturing and processing activity.
Prohibited Merchandise —Merchandise, the importation of which is prohibited by
law on grounds of public policy or morals, or any merchandise that is excluded from a
zone by order of the Foreign -Trade Zones Board. Books urging treason or insurrection
against the U.S., obscene pictures, and lottery tickets are examples of prohibited
merchandise. Also, certain operations involving the following merchandise are prohibited:
Tobacco, cigars, cigarettes and cigarette papers and tubes (26 U.S.C. 5701-5706);
Firearms (26 U.S.C. 4181-4182/5811); Distilled spirits, alcohol, wine and beer (26 U.S.C.
5001-5008/5010); Sugar (26 U.S.C. 4501-4503); Watch movements (19 U.S.C. 1367-
1368); Bicycle parts were prohibited for a limited time period (19 U.S.C. 81 b(c)) until
December 31, 1992; and retail sales in a zone (19 U.S.C. 81 (o)(d) & CR 146.14).
Regulations —All operations within the foreign -trade zone are subject to the
Foreign -Trade Zones Board Regulations, 15 C.F.R. Part 400; and U.S. Customs
St. Lucie County 2 June 7, 2022
Regulations, 19 C.F.R. Part 146. Imports and exports may also be governed by the
Regulations or Guidelines of other Federal Agencies. All products to be admitted to a
foreign -trade zone must be reviewed for potential compliance issues.
Restricted Merchandise/Operations—Merchandise which may not be authorized
for delivery from Customs custody without a special permit, or a waiver thereof, by an
agency of the U.S. Government. Also, the Foreign -Trade Zones Board and U.S. Customs
have restricted certain operations involving the following products: steel, apparel/textiles,
television tubes, auto parts, milk, and sugar, orange juice, printers ink, alcohol/gasohol,
oil refining, tires, chain saws and golf carts. The restrictions may vary on a case -by -case
basis.
Service Area means the Counties (St. Lucie, Indian River, and Okeechobee
Counties) where usage -driven or magnet sites can be established under ASF rules.
Status of Merchandise —
A. Domestic Merchandise —Merchandise produced in the U.S., not exported
therefrom, and on which all internal revenue taxes, if applicable, have been paid; and,
imported merchandise properly released from Customs' custody on which all applicable
duties and taxes have been paid. (19 C.F.R. § 146.43).
B. Nonprivileged Foreign Merchandise —Foreign merchandise or
non -tax -paid domestic merchandise upon which the duty and applicable taxes will be
determined at the time the merchandise enters the Customs territory of the United States
from the zone for consumption. (19 C.F.R. § 146.42).
C. Privileged Foreign Merchandise —Foreign merchandise or non -tax -paid
domestic merchandise upon which the duty and applicable taxes have been determined
at the time this status is approved. The determined duty rate and taxes are not subject
to future fluctuation. However, if merchandise is subject to antidumping or countervailing
duties, and therefore placed in Privileged Foreign status, the merchandise will be entered
under the HTSUS rate of duty in effect at the time of admission to the zone; however, the
estimated AD/CVD rates are those in effect at the time of withdrawal from the zone.
Merchandise subject to antidumping or countervailing duties, that must be placed in
privileged foreign status pursuant to Section 400.14 (e)(2), Foreign -Trade Zones Board
Regulations, may be exported duty free except to North American Free Trade Agreement
countries. Once established, Privileged Foreign status cannot be changed. If
merchandise has already been admitted to a zone with Nonprivileged Foreign status,
Privileged Foreign status may be obtained by filing a CBP Form 214 and related
documents. Application for this status, however, must be filed prior to manipulation or
production in the zone. (19 C.F.R. § 146.41).
D. Zone -Restricted Merchandise —Merchandise admitted to a zone for the
sole purpose of exportation or destruction. Merchandise with Zone -Restricted Status may
St. Lucie County 3 June 7, 2022
not enter U.S. Customs territory for consumption except when approved by the
Foreign -Trade Zones Board. No production or processing may occur with merchandise
that is in Zone Restricted Status. Drawback may be filed immediately upon merchandise
admission. (19 C.F.R. § 146.44).
Subzone—A special purpose zone established as part of a zone project for a
limited purpose that cannot be accommodated within an existing zone. Foreign
merchandise may be admitted to the area without the payment of U.S. Customs duties
and taxes or the imposition of U.S. quotas; domestic merchandise is allowed in the area.
No U.S. Customs duties, taxes, or quotas apply if the merchandise is exported; U.S.
Customs duties, taxes and quotas are applicable if the merchandise is imported into U.S.
Customs territory either on the basis of the imported materials or the finished product
depending on the zone status designation.
Sunset Provision —Magnet sites have a rolling five (5) year sunset provision
during which at least a portion of the magnet site must be activated, while a usage -driven
site must demonstrate actual zone activity within three (3) years or lose zone status.
Usage -Driven Site means sites designated to meet a specific operator/user's
present need for FTZ designation; usage -driven sites cannot be used by another entity.
Zone Operator —The foreign -trade zone may be managed by the Grantee, a firm
that oversees one or multiple zone users, or each firm may be its own foreign -trade Zone
Operator. For the purposes of this Schedule, the term Zone Operator shall apply to both
general-purpose zones and subzones. The zone or subzone may be an organization,
corporation, partnership, or person that operates under the terms of an agreement with
the Zone Grantee. There may also be multiple Zone Operators operating under the terms
of agreement with the Zone Grantee.
Zone User —A person or firm using a zone for storage, handling or processing of
merchandise. The Zone Operator may authorize a Zone User to maintain its individual
inventory control and recordkeeping systems and procedures manual; however, the Zone
Operator will remain responsible to Customs and liable under its bond for supervision,
defects in, or failures of the systems unless the Zone User posts its own FTZ Operator's
Bond and becomes a Zone Operator.
Zone Year —Each Zone Operator may choose its own zone year. December 31 is
the year-end for Foreign -Trade Zones Board Annual Report purposes.
St. Lucie County 4 June 7, 2022
SECTION II - OVERVIEW OF FOREIGN -TRADE ZONES
Foreign -trade zones (zones) are restricted -access sites in or near ports of entry,
which are licensed by the Foreign -Trade Zones Board and operated under the
supervision of the U.S. Customs (see, 19 C.F.R. Part 146). Authority for establishing
these facilities is granted to qualified corporations. Applications submitted to the Foreign -
Trade Zones Board for grants of authority must show the need for zone services and a
workable plan that includes suitable facilities and financing.
Zones are operated under public utility principles. Zone Grantees usually contract
with private firms to operate facilities and provide services to zone users. Zones have as
their public policy objective the creation and maintenance of employment through the
encouragement of operations in the United States that, for Customs reasons, might
otherwise have been carried on abroad. The objective is furthered particularly when
zones assist exporters and re-exporters, and usually when goods arrive from abroad in
an unfinished condition for processing here rather than overseas.
Foreign and domestic merchandise may be moved into zones for operations not
otherwise prohibited by law involving storage, exhibition, assembly, production or other
processing. The usual formal Customs entry procedure and payment of duties is not
required on the foreign merchandise unless and until it enters Customs territory for
domestic consumption, in which case the importer ordinarily has a choice of paying duties
either on the original foreign material or the finished product. Quota restrictions do not
normally apply to foreign goods stored in zones, but the Foreign -Trade Zones Board can
limit or deny zone use in specific cases on public interest grounds. Domestic goods
moved into a zone for export may be considered exported upon entering the zone for
purposes of excise tax rebates and drawback. "Subzones" are a special-purpose type of
ancillary zone authorized by the Foreign -Trade Zones Board, through grantees of public
zones, for operations by individual firms that cannot be accommodated within an existing
zone when it can be demonstrated that the activity will result in a significant public benefit
and is in the public interest. Foreign merchandise and domestic merchandise for export
in a zone are exempt from state and local ad valorem taxes. (15 C.F.R. § 400.1(c)).
More detailed information is contained in the Foreign -Trade Zones Act - 19 U.S.C.
81a-u; Foreign -Trade Zones Board Regulations - 15 C.F.R. Part 400; and U.S. Customs
Regulations - 19 C.F.R. Part 146.
St. Lucie County 5 June 7, 2022
SECTION III - APPLICATION OF RULES, REGULATIONS AND RATES
Section 111.0 — Application and Interpretation of Foreign -Trade Zone No. 218, Zone
Schedule
The rules, regulations and rates of this Zone Schedule shall apply at Foreign -Trade
Zone No. 218, its subzones and annexes unless otherwise provided for. The Zone
Grantee/Operator, shall be the sole judge to interpret and determine the applicability of
any of the rates, regulations or services provided for in this Zone Schedule. However,
any matter involving interpretation or action by the U.S. Customs or other agency of the
U.S. Government will be determined by the Port Director of Customs, with the
concurrence of the Foreign -Trade Zones Board. Where applicable, the Foreign -Trade
Zones Board and U.S. Customs Regulations shall prevail should any conflict arise with
this schedule.
Section 111.1 — Regulations - Foreign -Trade Zones Board
Foreign -Trade Zone No. 218 is regulated by the Foreign -Trade Zones Board,
Washington, D.C., special regulations as defined in the U.S. Code of Federal Regulations,
Title 15, Chapter IV, Part 400-Regulations of the Foreign -Trade Zones Board.
Section 111.2 — Regulations - United States Customs and Border Protection
Foreign -Trade Zone No. 218 is subject to special U.S. Customs regulations as
defined in U.S. Code of Federal Regulations, Title 19, Chapter I, Part 146-Foreign-Trade
Zones.
Section 111.3 — Public Utility Standard
Pursuant to Foreign -Trade Zones Board Regulation, the zone must be operated
as a public utility. All rates and charges for all services or privileges within the zone shall
be fair and reasonable, and the Zone Grantee and Zone Operator(s) shall afford to all
who may apply for the use of the zone and its facilities and appurtenances uniform
treatment under like conditions, subject to such treaties or commercial conventions as
are now in force or may hereafter be made from time to time by the United States with
foreign governments regardless of whether a zone participant has processed any zone
related product or engaged a particular service provider. (15 C.F.R. § 400.43). The
General -Purpose Zone Project contains buildings available for sale or lease, and open
land suitable for construction, to ensure that the reasonable zone needs of the business
community are being met. The buildings are equipped to provide storage, manipulation,
production, and other office space for individual companies to act as their own Operator
within their own facility. Additionally, there are buildings available, or land available for
construction, that would accommodate a third party provider public warehouse building
or buildings, making zone services available to those companies who did not wish to lease
or purchase their own building, or physically handle their own merchandise while within
St. Lucie County 6 March 2022
SECTION III - APPLICATION OF RULES, REGULATIONS AND RATES
the foreign -trade zone site. In this manner, the Grantee provides the community the
opportunity for a wide range of firms to be accommodated under public utility principles.
Section 111.4 - Uniform Treatment Standard
Any company that prepares an application to be filed with the Foreign -Trade Zones Board
shall be sponsored by this Grantee organization unless that company is in a business
that will harm other domestic companies, includes information in its application that is
detrimental to the local community, or is not deemed to be in the general public interest.
St. Lucie County 7 June 7, 2022
SECTION IV - OPERATION OF ZONE
Section IV.0—Activation
Pursuant to regulations of the U.S. Customs, all or any portion of the zone
approved by the Foreign -Trade Zones Board may be approved by the Zone Grantee and
the Port Director of Customs for foreign -trade zone operations and for the admission,
handling, and shipment for import or export of merchandise in zone status. All procedures
of U.S. Customs and Border Protection shall be followed. (19 C.F.R. § 146.6).
Section IV.1—Lapse/Sunset Provision
The grant of authority for every general-purpose zone or subzone may lapse if it is
not activated and in operation within five years of the initial Foreign -Trade Zones Board
Order issued after November 7, 1991. Detailed provisions apply. If a portion of any zone
site is not activated within five (5) years of the establishment of the zone site, Grantee
has the right to transfer zone status to another parcel of land adjacent to the Customs
Port of Entry. Contact the Zone Grantee for a complete explanation. (15 C.F.R. §
400.13(a)(4)). All zone operators in general-purpose zone sites are subject to sunset
provisions. A usage -driven site operator secure activation approval and must
demonstrate zone activity within three (3) years or lose zone status. If an operator is
located in a magnet site, the operator or another operator in the magnet site must activate
a portion of the magnet site within five (5) years. Failure to meet the sunset provisions
will result in automatic deletion of zone status. St. Lucie County, as Grantee, will not be
held liable for any difficulties this may create for an operator.
Section IV.2—Manipulation, Production, Exhibition of Merchandise
In general, merchandise lawfully brought into a zone may, in accordance with
these and other regulations made under the provisions of the Act, be stored, sold,
exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed
with foreign and domestic merchandise, or otherwise manipulated or be produced.
(a) Permission for any manipulation, production, destruction, or exhibition in a zone
shall be obtained from the Port Director of Customs, as the representative of the Foreign -
Trade Zones Board, subject to such application and procedure prescribed by the
Secretary of the Treasury for the protection of the revenue by means of a CBP Form 216.
(b) For production (production/processing), a second request must be made in
advance to the Foreign -Trade Zones Board for production operations. The Foreign -Trade
Zones Board defines production as any change in HTS classification. The Foreign -Trade
Zones Board must approve all production operations. This includes certain "kitting"
operations where there may be a change in HTSUS classification. Any new production
operation beyond the scope approved in the Grant of Authority must be authorized by the
Foreign -Trade Zones Board. See generally 15 C.F.R. 400.14(a). In a general-purpose
zone, expedited action under Interim Production Notification authority can be secured. In
St. Lucie County 8 March 2022
SECTION IV - OPERATION OF ZONE
existing general-purpose zone sites and subzones, Interim Production Notification
authority may be secured in less than one hundred and twenty (120) days if U.S. Customs
and Border Protection will provide a concurrence letter to the Foreign -Trade Zones Board.
(c) In the event of the denial of any application by the Port Director for any reason,
the applicant, the Zone Grantee, or the Zone Operator of the zone may appeal the
adverse ruling. If any revenue protection considerations are involved in such an
application, the Foreign -Trade Zones Board shall be guided by the determinations of the
Secretary of the Treasury.
Section IV.3—Merchandise Permitted in a Zone
Foreign and domestic merchandise of every description, except such as is
prohibited by law, may without being subject to Customs laws of the United States, except
as otherwise provided in the Foreign Trade Zones Act and the regulations made
thereunder, be admitted into a zone.
(a) Merchandise that is specifically and absolutely prohibited by law shall not be
admitted into a zone. Any merchandise so prohibited by law that is found within a zone
shall be disposed of in the manner provided for in the laws and regulations applicable to
such merchandise. A distinction is made between (1) merchandise which is specifically
and absolutely prohibited by law on the grounds of policy or morals, such as immoral or
subversive literature, obscene articles, or lottery matter, and (2) merchandise which is
subject to conditional prohibition only, for example, articles which are subject to permits
or licenses for the protection of economic or national security or which may be
reconditioned to bring them into compliance with the laws administered by various
Federal agencies. Port Directors of Customs are required to exclude the first class of
articles and may not permit them to be admitted to a zone if they are aware of their
prohibited status, except that the Port Director may permit the temporary deposit of any
such merchandise in the zone pending final determination of its status. The transfer of
articles of the second class to a zone is subject to any requirements of the Federal agency
concerned. See 19 C.F.R. § 146.31(a) and (b).
Section IVA—Retail Trade Within Zone
No retail trade shall be conducted within a zone except under permits issued by
the Foreign -Trade Zones Board. Duty paid and domestic merchandise may be sold in a
foreign -trade zone under certain circumstances.
Section IV.5—Scope of Authority
Foreign -Trade Zone No. 218 is authorized by Foreign -Trade Zone Board Order
No. 851 and 2124 to undertake the activities set out therein. The Foreign -Trade Zones
Board must authorize all production activity that results in a change in the imported
St. Lucie County 9 June 7, 2022
SECTION IV - OPERATION OF ZONE
material's Harmonized Tariff Schedule of the United States classification. This includes
"kitting" operations where finished products are packaged together for sale. Any change
in imported materials and finished products for such activity must also be authorized to
only undertake those activities approved by the Foreign -Trade Zones Board. Zone
Operator/User shall promptly notify the Zone Grantee of any activity requiring Foreign -
Trade Zones Board notice and authorization.
Section IV.6—Sponsor of New Zone or Subzone
The Zone Grantee may in its sole discretion decide to sponsor a new zone or
subzone project and forward an Application to the Foreign -Trade Zones Board. In order
to make its determination, the interested party must submit, in letter form to the Grantee,
sufficient data in summary form as required in an Application to the Foreign -Trade Zones
Board. (15 C.F.R. 400.14(a), 400.22, 400.25, and 400.37). If the Zone Grantee decides
to sponsor the proposed project, the Application must be prepared at the cost of the
applicant.
Section IV.7—Termination-Accrued Obligations/Survival
All Zone Operator/Users will specifically acknowledge and agree that, upon
termination or expiration of tenancy in the foreign -trade zone for any reason whatsoever,
Zone Operator/User shall not be released or relieved from fulfilling any and all of its
obligations or duties which arose or accrued during the term of its zone usage, and Zone
Operator/Users will specifically represent and warrant to Zone Grantee that upon
termination or expiration of its zone usage for any reason whatsoever, Zone
Operator/User shall completely perform and fulfill any and all of its obligations or duties
which arose or accrued during the term of its zone use including the immediate
preparation and filing of all necessary reports with the Grantee and the U.S. Customs.
Specifically, the Zone Operator/User's indemnity obligations, bond obligations, and
record and record retention obligations shall survive the termination or expiration of any
Agreement and/or zone activity for any such reason. Zone Grantee may require the
tender of all such records for safekeeping.
St. Lucie County 10 June 7, 2022
SECTION V - GENERAL RULES AND REGULATIONS
Section V.0—Agreements
All firms using the services of a Foreign -Trade Zone Operator must enter into an
operating agreement. All Foreign -Trade Zone or Subzone Operators must enter into an
agreement with the Zone Grantee. If there is a conflict between the operating agreement
and this Schedule, the agreement will prevail.
Section V.1—Government Agencies
Zone Operator/User must comply with all lawful regulations regarding U.S. or
Florida government agencies. Besides the U.S. Customs, many U.S. agencies have
specific laws that apply to the import and export of merchandise. The Zone Operator/User
and its Customs Broker, if applicable, are responsible for assuring compliance.
Section V.2—Governmental Licenses
Zone Operators/Users are responsible to obtain, maintain, and keep current any
and all licenses, permits, certificates or other authorizations required by any Federal,
State, or local government that are or may be necessary in the conduct of business in or
from the zone.
Section V.3—Public Interest, Health and Safety
No operation or process of treatment will be permitted in the zone that, in the
judgment of the Foreign -Trade Zones Board, Zone Grantee or Zone Operator, is
detrimental to the public interest, health and/or safety. Zone management reserves the
right to refuse merchandise that would, in the opinion of the zone management, pose
unusual or unacceptable problems or hazards to the zone. See also Restricted
Merchandise/Operations in Section I.
Section V.4—Regulations - General
All persons and merchandise of every description entering or leaving Foreign -
Trade Zone No. 218 for any purpose whatsoever shall be bound by the lawful regulations
of the Foreign -Trade Zones Board and by the Board Order issued thereunder, and the
U.S. Customs and actions of the Port Director of Customs.
Although zones are outside the Customs territory, most Federal laws apply in
zones. The extent to which they apply or do not apply depends on their precise wording,
their relationship to the Foreign -Trade Zones Act, and the interpretation thereof by the
particular Federal Agency affected. State and local laws apply in zones except to the
extent they are preempted or modified by Federal laws. The Foreign -Trade Zones Board
and the Port Director of Customs cooperate with Federal, State, and local government
authorities in the administration of their laws, regulations, and ordinances. The Zone
St. Lucie County 11 March 2022
SECTION V - GENERAL RULES AND REGULATIONS
Grantee, Zone Operator, and Zone Users shall allow such authorities access to the zone
to carry out their duties. They are, however, subject to admission and departure
requirements as noted herein.
Section V.5—Regulations - Zone
The following rules governing procedure within Foreign -Trade Zone No. 218 are
issued in conformity with and supplementary to the Foreign -Trade Zones Board and U.S.
Customs regulations and such other United States laws and regulations relating to the
Port of Entry as are applicable to Foreign -Trade Zone Operations.
St. Lucie County 12 June 7, 2022
SECTION VI - SPECIAL RULES PERTAINING TO MERCHANDISE
Section VI.0—Grantee Knowledge
The Zone Grantee is not obligated to, and does not intend to, monitor the day-to-
day activity of the Foreign -Trade Zone. The Zone Grantee shall have no knowledge,
actual or constructive, of the quantity, character, status designation, identification, or time
of admission, transfer, or release of goods into or from the Foreign -Trade Zone.
Section VIA —Handling of Merchandise
Zone Operator/User will be responsible for the receipt and verification of all
merchandise admitted to the Zone on the proper Customs Forms and for handling of all
merchandise having activity being performed under the proper Customs Forms. Zone
Operator/User will perform all these functions according to all Customs Regulations that
apply to these activities. Zone Operator/User will not allow removal of any merchandise
located within the Zone without prior approval from Customs under the applicable laws,
rules and regulations of the U.S. Customs.
Section VI.2—Marking
All merchandise handled in the zone, before entry to Customs territory, must be
marked in accordance with U.S. Customs regulations as to the country -of -origin and in
accordance with all other government regulations. No merchandise will be permitted by
Customs to be transferred from the zone for any purpose that is not properly labeled or
carries any false or misleading label or mark. A CBP Form 216 must be filed and
approved by the U.S. Customs prior to any repacking and labeling that may occur in the
zone.
Section VI.3—Record Deficiencies
In the event that any audit, inspection, or examination by the U.S. Customs, the
Foreign -Trade Zones Board, or Zone Operator discloses that books, records or
operational procedures of Zone Operator/User are not in conformance with the
requirements of Federal, State and/or local law and the Operator's Agreement, the U.S.
Customs, the Foreign -Trade Zones Board, Zone Grantee or Zone Operator may order
the immediate correction of the documents or procedures. In the event that it is
anticipated that such correction will take in excess of five (5) working days, a plan of
performance will be submitted by the responsible party(s) to the Zone Grantee or Zone
Operator for the correction of such discrepancy which shall be approved if necessary, by
the Foreign -Trade Zones Board and the U.S. Customs, and shall proceed with all due
diligence to correct the deficiency as described in the approved plan.
St. Lucie County 13 March 2022
SECTION VI - SPECIAL RULES PERTAINING TO MERCHANDISE
Section VIA —Record Retention
All financial and accounting records of Zone Operator/User concerning zone
operations shall be retained for five (5) years after the act or occurrence recorded or after
the merchandise covered by such records has been forwarded from the Zone, whichever
is longer, and all such records shall be available for inspection and audit by any
appropriate government agency and by Zone Grantee during normal business hours.
Section VI.S—Reports to Governmental Agencies
The Zone Operator is required to submit periodic reports to the Grantee and the
U.S. Customs, or may be required to perform other acts as the Zone Operator of the zone
in compliance with governmental regulations. Zone Users are required to and shall
cooperate with the Zone Operator in the creation and maintenance of procedures,
systems, regulations, or programs, and provide information and statistics that the Zone
Operator considers necessary to ensure compliance with governmental requirements.
The Zone Grantee must file an Annual Report to the Foreign -Trade Zones Board by the
last business day in March on all activity that occurred in the zone during the previous
government fiscal year (January 1 through December 31). Each Zone or Subzone
Operator and Zone User must cooperate in providing the necessary data (15 C.F.R. §
400.51(c)). This data must be provided to the Grantee by no later than February 15 each
year through OFIS. An Annual Reconciliation and Annual Internal Review is required of
each Foreign -Trade Zone or Subzone Operator. (19 C.F.R. § 146.25, 146.26). A letter
notification must be forwarded to the Customs Port Director within ninety (90) days of the
end of the Operator zone year.
Section VI.6—Right of Entry
Representatives of the the Foreign -Trade Zones Board, the U.S. Customs, and
other authorized U.S. Government officers, shall have the right of access to enter the
Zone for the authorized and lawful purpose of examining same, conferring with Zone
Operator/User, its agents, invitees, and employees on such premises, inspecting and
checking operations, supplies, equipment and merchandise, and determining whether the
business is being conducted in accordance with the procedures established for the
operation and management of the zone.
St. Lucie County 14 June 7, 2022
GRANTEE CHARGES
APPLICATION, ACTIVATION, AND ANNUAL FEES --
(a) Foreign -Trade Zones Board Application Fees --Zone Applications submitted to the
Foreign -Trade Zones Board must be accompanied with a check in the following
amount, as required by 15 C.F.R. § 400.29:
(1) Additional General -Purpose Zones (15 C.F.R. § 400.24 and 400.21 (a)(2)) .....
............................................................................................................... $4,000
(2) Special Purpose Subzones (15 C.F.R. § 400.25)
(i) Non-production/processing or less than three products .................... $4,000
(ii) Production/processing three or more products ................................. $6,500
(3) Expansions (15 C.F.R. § 400.26(b))...................................................... $1,600
These fees are payable by the Zone Operator of the appropriate site as described in
1, 2, and 3 above. The Zone Grantee will not be liable for any such fees. Note that
there are no fees payable to the Foreign -Trade Zones Board for Boundary
Modifications or Requests for Production/Processing Authority within a general-
purpose zone.
(b) U.S. Customs Activation and Annual Fee --These fees were suspended pursuant to
the Omnibus Budget Reconciliation Act of 1987 (Public Law 100-203).
(c) Annual Fee - An administrative annual fee is charged by the Zone Grantee for each
general-purpose zone and special purpose subzone usage -driven site Operator in
the annual amount of $5,000. Dates payable, etc. are specified in the Operations
Agreement between the Zone Grantee and Zone Operator of the General -Purpose
Zone and/or Special Purpose Subzone usage -driven site.
(d) Application Fee - The Zone Grantee charges each applicant for a new site an
Application fee to cover the costs of preparation of an FTZ Agreement, review of the
proposed Application, processing the Grantee Letter of Transmittal, and other
administrative items. The Application fee is $5,000 and is due upon submission of a
draft Application and the signed FTZ Agreement.
MKC/DOCU/204769 (4316)
St. Lucie County 15 June 7, 2022