Foreign-Trade Zone #36
THE FOREIGN-TRADE ZONE (FTZ) PROGRAM was created by the U.S. government to facilitate international trade and increase the global competitiveness of U.S.-based companies. The program, which has existed since the 1930s, continues to thrive and change to better meet the needs of American companies in the global economy. In keeping with this policy, zones encourage foreign and domestic investment by removing a tariff bias that unintentionally discourages investment in the U.S. and encourages supplying the U.S. market from off-shore.
FTZs are considered to be outside of U.S. Customs Territory for the purpose of customs duty payment. Therefore, goods entering FTZs are not subject to customs tariffs until the goods leave the zone and are formally entered into U.S. Customs Territory. Merchandise that is shipped to foreign countries from FTZs is exempt from duty payments. This provision is especially useful to firms that import components in order to manufacture finished products for export. There is no time limit on goods stored inside a FTZ and certain foreign and domestic merchandise held in FTZs may be exempted from state and local inventory taxes
A variety of activities can be conducted in a zone, including assembling, packaging, destroying, storing, cleaning, exhibiting, re-packing, distributing, sorting, grading, testing, labeling, repairing, combining with foreign or domestic content, or processing. Manufacturing and processing require specific FTZ Board approval, however.
FTZ No. 36 was approved by the FTZ Board in 1978. The Port of Galveston became the Grantee in 2000 expanding the zone and most recently was approved to modernize the operation of the zone under the new Alternative Site Framework zone management system. The service area for FTZ No. 36 is Galveston County and currently the zone has activated sites at the Port of Galveston,and in Hitchcock, Texas. Additionally there is a 38 acres site at Scholes International Airport authorized for zone activity.
For a copy of FTZ Zone Schedule No 5 click here
Site 1-A & Site 5
Wallenius Wilhelmsen Logistics
Port of Galveston
Scholes International Airport