Scenario Discussion FTZ Ruling H275567

Question: Can I ship items in bulk to USA, place them in an FTZ and as needed use Section 321 to ship them to customers?

Answer: No

Why: At arrival to USA the merchandise is considered “imported”.  At importation eligibility for Section 321 is established, going (inbond) to an FTZ doesn't postpone “importation”, it postpones customs clearance and duty payment.  Thus if the bulk shipment is worth over $800 it is not eligible for Section 321 when taken out of the FTZ to enter the commerce of the USA.

Possibilities: There are possibilities that can be used as established by CBP for similar scenarios if purchasers or owners are known at the time before the shipment arrives to USA.  Get in contact with us to discuss compliance possibilities in your unique scenario.

Ruling Overview

You cannot do this as Ruling H275567 explains “Furthermore, the FTZ regulations define foreign merchandise as: “imported merchandise which has not been properly released from Customs custody in Customs territory.” 19 C.F.R. § 146.1 (emphasis added).  Therefore, prior to its admission into the FTZ, the merchandise has been “imported,” but it simply has not been entered into the Customs territory of the United States.”

When the items arrive to the FTZ they are considered imported and at import if the administrative exemption found under Section 321 is eligible must be established.