[Federal Register Volume 74, Number 93 (Friday, May 15, 2009)]
[Notices]
[Pages 22888-22891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-11421]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board


Proposal for Changes to the Format of Annual Reports Submitted to 
the Foreign-Trade Zones Board

SUMMARY: The Foreign-Trade Zones (FTZ) Board is inviting public comment 
on a staff proposal to revise the format of annual reports that are 
submitted by zone grantees to the Foreign-Trade Zones Board. The 
revisions are intended to clarify the information that is being 
requested and focus on the information that is most important for 
oversight of the FTZ program. For comparison, the current format for 
annual reports is available on the FTZ Board's Web site--accessible via 
http://www.trade.gov/ftz--within the ``Already in a Zone?'' section. 
Relative to the current format, a number of multiple-part questions 
have been broken out into separate questions for purposes of clarity 
and ease of use. In general, the amount of information being requested 
in the proposed format is reduced relative to the existing format.

Part 1: Zone Project Summary

    1. Was foreign-status merchandise stored within the zone under zone 
procedures during the fiscal year?
    If the answer is no, complete questions 2-3 below:
    2. Describe the promotion and marketing efforts that are being 
undertaken to provide local companies with information on using the 
zone?
    3. Has the zone ever been used for the admission and storage of 
zone status merchandise? If yes, indicate when.
    If the answer is yes, complete questions 4-12 of Part 1 below for 
all warehouse and distribution operations within the general-purpose 
zone and any subzones. In addition, for each general-purpose zone (GPZ) 
or subzone operation involved in manufacturing/processing, complete a 
separate Part 2 (Manufacturing/Processing GPZ and Subzone Operations).
    4. Provide a summary of the warehouse and distribution activity 
that occurred within the zone project. Specifically discuss any 
developments or trends in shipments or activity and any value added 
activity that occurred within active zone space.
    5. Discuss how the zone project contributes to the local economy 
and local economic development efforts, including the FTZ impact on 
local employment, port activity, industrial development, international 
trade and investment. If applicable, describe in what ways the zone has 
been used locally by the logistics industry and other companies to 
address supply chain issues.
    6. The general-purpose zone served ------ zone users during the 
fiscal year. The number employed by zone users within activated 
general-purpose zone areas was ------ persons. Employment figures 
should include both direct and contract persons. For part time workers, 
please report a full time equivalent (e.g., 60 contract employees 
working for 6 months would equal a full time equivalent of 30 workers).
    7. Activity Summary:
    Provide a list of general-purpose zone sites and indicate the 
number of acres that are activated at each site. Also indicate if the 
site is subject to a time or sunset limit.
    Provide a list of approved subzones and indicate the activation 
status of each subzone. If the subzone is active, provide the 
employment (direct + contract) for the subzone. If inactive, indicate 
if the subzone has lapsed.
    8. Movement of Merchandise:
    This section should include the movement of merchandise for all 
general-purpose and subzone operations that did not require FTZ Board 
manufacturing/processing authority. (There is a separate section below 
where manufacturing/processing operations that occurred within the 
general-purpose zone or any subzone will be reported individually.)

[[Page 22889]]

    Zone reports should reflect only activity within activated portions 
of zones/subzones. Foreign and domestic merchandise handled within 
activated FTZ areas should be reported.

       Merchandise in the Zone at Beginning and End of Fiscal Year
------------------------------------------------------------------------
                                                 Beginning    End value
                                                 value ($)       ($)
------------------------------------------------------------------------
Domestic Status...............................  ...........  ...........
Foreign Status................................
                                               -------------------------
    Total:....................................  ...........  ...........
------------------------------------------------------------------------


------------------------------------------------------------------------
           Merchandise received                       Value ($)
------------------------------------------------------------------------
Domestic Status...........................  ............................
Foreign Status............................
From Other U.S. FTZ's:....................
Domestic Status...........................
Foreign Status............................
                                           -----------------------------
    Total:................................  ............................
------------------------------------------------------------------------


------------------------------------------------------------------------
           Merchandise forwarded                      Value ($)
------------------------------------------------------------------------
To the U.S. Market........................  ............................
To Foreign Countries (Exports)............
To Other U.S. FTZ's.......................
                                           -----------------------------
    Total:................................  ............................
------------------------------------------------------------------------

    Merchandise destroyed: $
    Explanation of Discrepancies:
    a. Does Beginning Inventory + Total Merchandise Received -Total 
Merchandise Forwarded - Merchandise Destroyed = Ending Inventory? If 
not, explain.
    b. Is the level of Merchandise Received this year significantly 
different from the previous year? If yes, explain.
    c. Is the Ending Inventory from the previous year equal to the 
Beginning Inventory for this year?
    9. Main Categories of Foreign Status Merchandise Received (Top 
Five)

------------------------------------------------------------------------
                                                      Main countries of
             Category                  Value ($)           origin
------------------------------------------------------------------------
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                   -------------------------------------
    Total:........................  ..............
------------------------------------------------------------------------

    10. Foreign Status Merchandise Received:
    Nonprivileged Foreign $
    Privileged Foreign $------.
    11. Customs duties collected on merchandise entered from the zone 
during the fiscal year amounted to $------.
    12. (Optional) Attachment field: You may attach any photographs of 
the zone or any information you feel may be useful.

Part 2: Manufacturing/Processing GPZ and Subzone Operators

    A separate Part 2, questions 2--17 should be included for each 
manufacturing/processing operation that occurred within the general-
purpose zone or any subzone. This reporting of manufacturing/processing 
applies to any activity requiring FTZ Board approval under the Board's 
regulations (15 CFR part 400). (Note that any oil refinery operations 
should use the oil refinery-specific Part 2 that follows this section.)
    Zone reports should reflect only activity within activated portions 
of zones/subzones. Foreign and domestic merchandise handled within 
activated FTZ areas should be reported.
    1. The grantee shall provide a list of each FTZ Board approved 
manufacturing/processing operation within the general-purpose zone or 
subzones, and indicate whether or not activity was conducted under zone 
procedures at each operation during the fiscal year. Note that separate 
information for questions 2-17 below is required for each active 
manufacturing/processing operation.
    2. Site/Subzone Number.
    3. Company Name.
    4. Activated Acres.
    5. Briefly describe the activity at the subzone/GPZ operation that 
is occurring under zone procedures. Have there been any changes to the 
activity or facilities within the past year?
    6. Provide the current year's level of production ------ and the 
level of production approved by the FTZ Board ------.
    7. Employment within the FTZ operation.
    8. Is the current activity consistent with the plan that was 
presented to and approved by the FTZ Board (this includes the level of 
savings, the components that are imported and the finished products). 
Explain how the activity is consistent.
    9. Provide an estimate for the value-added activity that takes 
place under zone procedures (labor, profit, overhead, etc.). One way to 
estimate value-added is: Value of Sales from Plant minus Value of 
merchandise Received at Plant. Value-added should not be included in 
the Movement of Merchandise figures below.
    10. Explain the extent to which FTZ status has helped your facility 
compete with plants abroad (this includes competition with other 
company facilities located abroad to expand or maintain product lines 
in the U.S.).
    11. If the manufacturing activity is subject to restriction, list 
the restriction(s) and describe the method of compliance.
    12. Movement of Merchandise:

       Merchandise in the Zone at Beginning and End of Fiscal Year
------------------------------------------------------------------------
                                    Beginning value
                                          ($)            End value ($)
------------------------------------------------------------------------
Domestic Status.................  ..................  ..................
Foreign Status
    Total:......................  ..................  ..................
------------------------------------------------------------------------


[[Page 22890]]


------------------------------------------------------------------------
           Merchandise received                       Value ($)
------------------------------------------------------------------------
Domestic Status...........................  ............................
Foreign Status............................
From Other U.S. FTZ's:....................
Domestic Status...........................
Foreign Status
                                           -----------------------------
    Total:................................  ............................
------------------------------------------------------------------------


------------------------------------------------------------------------
          Merchandise  Forwarded                      Value ($)
------------------------------------------------------------------------
To The U.S. Market........................  ............................
To Foreign Countries (Exports)............
To Other U.S. FTZ's.......................
                                           -----------------------------
    Total:................................  ............................
------------------------------------------------------------------------

    Merchandise destroyed: $
    Explanation of Discrepancies:
    a. Does Beginning Inventory + Total Merchandise Received-Total 
Merchandise Forwarded-Merchandise Destroyed = Ending Inventory? If not, 
explain.
    b. Is the level of Merchandise Received this year significantly 
different from the previous year? If yes, explain.
    c. Is the Ending Inventory from the previous year equal to the 
Beginning Inventory for this year?
    13. Main Categories of Foreign Status Merchandise Received (Top 
Five)

------------------------------------------------------------------------
                                                      Main countries of
             Category                  Value ($)           origin
------------------------------------------------------------------------
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                   -------------------------------------
    Total:........................  ..............
------------------------------------------------------------------------

    14. Main Categories of Merchandise Forwarded (Top Five)

------------------------------------------------------------------------
                        Category                             Value ($)
------------------------------------------------------------------------
                                                          ..............
                                                          ..............
                                                          ..............
                                                          ..............
                                                          ..............
                                                         ---------------
    Total:..............................................  ..............
------------------------------------------------------------------------

    15. Foreign Status Merchandise Received:
    Nonprivileged Foreign $
    Privileged Foreign $
    16. Customs duties collected on merchandise entered into U.S. 
Customs territory from the operation during the fiscal year amounted to 
$------.
    17. (Optional) Attachment field: You may attach any photographs of 
the operation or any information you feel may be useful.

Part 2 for Oil Refinery Operators

    Zone reports should reflect only activity within activated portions 
of zones/subzones.
    Foreign and domestic merchandise handled within activated FTZ areas 
should be reported.
    1. The grantee shall provide a list of each FTZ Board approved oil 
refinery operation within the general-purpose zone or subzones, and 
indicate whether or not activity was conducted under zone procedures at 
the subzone or GPZ site during the fiscal year. Note that separate 
information for questions 2-36 below is required for each active oil 
refinery operator.
    2. Site/Subzone Number.
    3. Company Name.
    4. Activated Acres.
    5. Activation Date.
    6. Number of tanks/storage capacity in barrels.
    7. Employment--direct and indirect (including contract employees).
    8. List primary non-crude receipts on an average daily basis.
    9. What percent of the primary non-crude receipts are sourced from 
abroad?
    10. List primary non-NPF attributed products (fuels, lubricants, 
etc.).
    11. The primary non-NPF attributed products account for ------% of 
total output.
    12. Provide a description of types of customers for non-NPF 
products shipped from the refinery. In describing customers, do not 
provide customer names or specific customer information. We are seeking 
general information about general types or categories of customers by 
industry and/or by use.
    13. Identify exports by product and volume.
    14. List primary products produced from NPF attributed feedstocks.
    15. NPF attributed products account for ------% of total output.
    16. Provide a description of types of customers for petrochemical 
products.
    17. Indicate approximate percentage of shipments that are to 
affiliated plants.
    18. Percent of total production directly exported.
    19. Percent of total production indirectly exported (if known).
    20. Current rated crude distillation capacity (BPD).
    21. Volume of total crude oil receipts on an average daily basis 
(BPD).
    22. Volume of foreign crude oil receipts on an average daily basis 
(BPD).
    23. Estimated percentage of foreign crude receipts under 25 degrees 
API.
    24. Provide the number and date of the most recent Board Order.
    25. What capacity (BPD or BPD equivalent) was approved by the Board 
in the above order? Grants of authority are approved for a given level 
of activity. In the case of oil refineries, the levels of activity are 
stated in terms of current rated crude distillation capacity. A plant 
may increase its capacity, but the level of approved zone activity for 
the plant remains at the level approved under the refinery's current 
Board Order. Significant increases in activity above Board-approved 
levels require an expanded authorization.
    26. Is the refinery operating within the approved scope of 
authority? Explain.
    27. Indicate how zone savings assist the company in its 
international competitiveness efforts (e.g., reduce operating costs, 
improve margins, help make exports more competitive, maintain or 
increase refinery capacity through processing unit upgrades or 
additions at U.S. refinery versus foreign refinery in a global 
industry).
    In describing how FTZ status has affected the refinery, please give 
examples and anecdotal information that you feel relevant. We recognize 
that FTZ status may be only a contributing factor.
    28. Current estimate of annual zone duty savings.
    29. Describe public-type benefits (both direct and indirect) to the 
local and national economy. Please give specific examples. As it 
applies to your plant, you may describe with any or all of the 
following:
    a. Affected domestic production employment and refinery capacity.

[[Page 22891]]

    b. Helped to offset environmental compliance costs.
    c. Helped to preserve U.S. refining capacity.
    d. Contributed to increased investment in U.S. refining.
    In describing industry impact, information may be presented to the 
FTZ Board on a company-wide or industry-wide basis (rather than from 
individual refineries). In this manner the accumulated impact of all of 
a company's facilities or the use of zone procedures in the industry as 
a whole may be discussed rather than on an individual basis.
    30. If the operation is subject to restriction, please describe 
method of compliance.
    31. Movement of Merchandise

       Merchandise in the Zone at Beginning and End of Fiscal Year
------------------------------------------------------------------------
                                    Beginning value
                                          ($)            End value ($)
------------------------------------------------------------------------
Domestic Status.................  ..................  ..................
Foreign Status..................
                                 ---------------------------------------
    Total:......................  ..................  ..................
------------------------------------------------------------------------


------------------------------------------------------------------------
           Merchandise received                       Value ($)
------------------------------------------------------------------------
Domestic Status...........................  ............................
Foreign Status............................
From Other U.S. FTZ's:....................
Domestic Status...........................
Foreign Status............................
    Total:................................  ............................
------------------------------------------------------------------------


------------------------------------------------------------------------
          Merchandise  forwarded                      Value ($)
------------------------------------------------------------------------
To The U.S. Market........................  ............................
To Foreign Countries (Exports)............
To Other U.S. FTZ's.......................
                                           -----------------------------
    Total:................................  ............................
------------------------------------------------------------------------

    Merchandise destroyed: $
    Explanation of Discrepancies:
    a. Does Beginning Inventory + Total Merchandise Received - Total 
Merchandise Forwarded - Merchandise Destroyed = Ending Inventory? If 
not, explain.
    b. Is the level of Merchandise Received this year significantly 
different from the previous year? If yes, explain.
    c. Is the Ending Inventory from the previous year equal to the 
Beginning Inventory for this year?
    32. Main Categories of Foreign Status Merchandise Received (Top 
Five)

------------------------------------------------------------------------
                                                      Main countries of
             Category                  Value ($)           origin
------------------------------------------------------------------------
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                    ..............  ....................
                                   -------------------------------------
    Total:........................  ..............
------------------------------------------------------------------------

    33. Main Categories of Merchandise Forwarded (Top Five)

------------------------------------------------------------------------
                        Category                               Value
------------------------------------------------------------------------
                                                          ..............
                                                          ..............
                                                          ..............
                                                          ..............
                                                          ..............
                                                         ---------------
    Total:..............................................  ..............
------------------------------------------------------------------------

    34. Foreign Status Merchandise Received:
    Nonprivileged Foreign $
    Privileged Foreign $
    35. Customs duties collected on merchandise entered into U.S. 
Customs territory from the operation during the fiscal year amounted to 
$------.
    36. (Optional) Attachment field: You may attach any photographs of 
the operation or any information you feel may be useful.
    Public comment on this proposal is invited from interested parties. 
We ask that parties fax a copy of their comments, addressed to the 
Board's Executive Secretary, to (202) 482-0002 or e-mail comments to 
[email protected]. We also ask that parties submit the original of their 
comments to the Board's Executive Secretary at the following address: 
U.S. Department of Commerce, Room 2111, 1401 Constitution Ave. NW., 
Washington, DC 20230. The closing period for the receipt of public 
comments is July 14, 2009. Any questions about this proposal should be 
directed to Elizabeth Whiteman at [email protected] or 
(202) 482-0473.

    Dated: May 8, 2009.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E9-11421 Filed 5-14-09; 8:45 am]
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