Import/Export & Foreign Zone #36

Foreign Trade Zone (FTZ) No. 36 was approved by the FTZ Board in 1978. The Port of Galveston became the grantee in 2000, expanding the zone and modernizing zone operations under the new Alternative Site Framework zone management system. The service area for FTZ No. 36 is Galveston County. Currently the zone has activated sites at the Port of Galveston and in Hitchcock, Texas. Additionally, there is a 38-acre site at Scholes International Airport authorized for zone activity.

Specific Advantages of FTZ No. 36

30 minutes from open ocean
An hour away from Houston/Port Houston
Rail access via BNSF

Primary Users

BMW of North America (Pier 10 VPC)
Wallenius Wilhelmsen (Pier 41)
Keen Transport (Dickinson, TX)
Texas International Terminals (T.I.T)

History on FTZ program

The 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. 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.