Foreign Trade Zone #136
Save Big with Foreign Trade Zone #136
Port Canaveral's Foreign Trade Zone (FTZ) 136 provides substantial benefits for businesses involved in international trade. FTZs enable duty deferral, reduction, or elimination, with duties only paid when goods enter U.S. customs for consumption. This flexibility helps businesses reduce operating costs and improve cash flow, especially for goods that are re-exported or processed into finished products. FTZ 136 allows your business to quickly adapt to market changes without the immediate duty costs associated with traditional importing, making it an appealing option for companies looking to optimize their international trade operations.
FTZ #136 Zone Schedule (Effective 10/1/2024)
FTZ #136 Zone Schedule
2.1. Schedule Content
This Schedule has been promulgated and adopted by the Grantee and contains the rules and regulations governing the use of Foreign Trade Zone No. 136 by Operators, Users, and all other persons and entities. The Schedule also includes the Rates and Charges applicable to use of the Zone. The use of a FTZ operated by Grantee constitutes the User’s (defined below) consent to the terms of this Schedule. This Schedule is intended to conform with and supplement the Foreign Trade Zones Act (“Act”) and the rules and regulations of the Foreign-Trade Zones Board (“FTZB”) and United States Customs and Border Protection (“USCBP”). The effective date of this Schedule is set forth on the cover page.
2.2. Severability
Each and every paragraph, sentence, term, and provision of this Schedule shall be considered severable and that, in the event any paragraph, sentence, term, or provision is determined to be invalid or unenforceable, the validity and enforceability, operation or effect of the remaining paragraphs, sentences, terms, or provisions shall not be affected and this Schedule shall be construed in all aspects as if the invalid or unenforceable matter had been omitted.
2.3. Amendment and Interpretation
Subject to the requirements of the Act and the FTZ regulations, this Schedule may be modified, amended or replaced by the CPA at any time, if the CPA determines it to be necessary or appropriate to do so. CPA shall, in its sole discretion, interpret the provisions of this Schedule and determine the applicability of any of its provisions. The CPA shall also have complete authority governing the imposition of Rates and Charges provided for herein.
The words listed below have the following meanings when used in this Schedule:
3.1 “Act” means the Foreign Trade Zones Act of June 18, 1934 (19 USC §81a et seq.), as amended.
3.2 “Activated Area” means a Zone Site, Usage Driven Site, or any portion thereof that has been Activated pursuant to the Act.
3.3 “Activated“ or “Activation” means the filing of an application with USCBP by the FTZ Operator, with Grantee's concurrence, which results in approval of utilization of an FTZ eligible site.
3.4 “Alternative Site Framework” (ASF) means an optional approach to designation and management of zone sites allowing greater flexibility and responsiveness to serve single-Operator/User locations.
3.5 “CBPF” means a USCBP Form as used in the Regulations, which will typically be paired with a specific number used by USCBP to identify and stipulate the use of such form.
3.6 "Domestic Merchandise” means merchandise which has been (i) produced in the United States and not exported therefrom, or (ii) previously imported into USCBP territory and properly released from USCBP custody.
3.7 “Foreign-Trade Zones Board” (FTZB) means the U.S. Foreign-Trade Zones Board of the U.S. Department of Commerce, as established by the Act. The FTZB is authorized, subject to the conditions and restrictions of the Act and of the rules and regulations made thereunder, to grant to appropriate applicants the privilege of establishing, operating, and maintaining foreign trade zones.
3.8 “FTZ” means Foreign-Trade Zone, as defined by the Act.
3.9 “FTZ Eligibility” means the issuance of a grant by the FTZB resulting in a designated area obtaining FTZ eligibility.
3.10 “FTZ Operator” means a corporation, partnership, or person that operates a Zone or Usage Driven Site under the terms of an Operating Agreement with the Grantee.
3.11 “FTZ Regulations” means Title 15, Code of Federal Regulations (CFR), Part 400, as amended, which governs the grant of authority, the establishment and maintenance of FTZ’s by Grantees.
3.12 “Grantee” means a corporation to which the privilege of establishing, operating, and maintaining a foreign trade zone has been granted. The Grantee of FTZ No. 136 is the CPA. As used in this definition, “corporation“ means a public corporation or a private corporation, as defined in the Act.
3.13 “Magnet Site” means a site intended to serve or attract multiple operators or users under the ASF.
3.14 “Non-Privileged Foreign Status Merchandise” means imported merchandise that has not cleared USCBP and for which the User does not wish said merchandise to retain its identity, from a USCBP classification standpoint, so that if altered, it will become classifiable in its condition when it enters the customs territory of the United States. All foreign merchandise in a zone which does not have status as privileged foreign or zone restricted is considered to be in non-privileged status.
3.15 “Operating Agreement” means a written agreement between the Grantee and any Operator utilizing the Zone that establishes the rules, procedures and requirements for the Operator’s use of the Zone.
3.16 “Port Director” means the USCBP Port Director with responsibility for overseeing the Activation and operations of the customs port of entry and the Zone.
3.17 “Privileged Foreign Status Merchandise” means imported merchandise that has not cleared customs and for which the User wishes said merchandise to retain its identity, from a USCBP classification standpoint, regardless of its condition when it ultimately enters the customs territory of the United States. The privileged status must be affirmatively requested by User.
3.18 “Service Area” means the jurisdiction(s) within which a Grantee proposes to be able to designate sites via minor boundary modifications under the ASF.
3.19 “Usage Driven Site” means a site tied to a single Operator or User under the ASF.
3.20 “USCBP” means the United States Customs and Border Protection Service.
3.21 “USCBP Regulations” means 19 CFR 146 that governs the activities of Operators within the Zone; the admission, manipulation, manufacture or exhibition of merchandise within the Zone; the exportation of merchandise from the Zone; the transfer of merchanise from one zone to another; and the transfer of merchandise from the Zone into Customs Territory.
3.22 “User(s)” means a person or firm using a Zone Site for storage, handling, or processing of merchandise.
3.23 “Zone” means the aggregate of all Zone Sites within FTZ No. 136.
3.24 “Zone Restricted Merchandise” means merchandise taken into the Zone for the sole purpose of exportation, destruction or storage and which cannot re-enter the U.S. Customs territory unless FTZB determines the return would be in the public interest. Zone-restricted status must be affirmatively requested by user.
3.25 “Zone Site” means each separate activated area comprising FTZ No. 136.
4.1 Grantee Authority
Foreign Trade Zone No. 136 was established by FTZB Order No. 349 issued on March 16, 1987 with the CPA functioning as the Grantee. General Purpose FTZ No. 136 was expanded once through FTZB Order No. 507 issued on January 29, 1991. There have been three Administrative Actions that have altered the boundaries of the General Purpose Zone Project – Administrative Actions A-31-91, A(27f)-26-92 and A(27f)-13-97. In addition, FTZ No. 136 was reorganized under the Alternative Site Framework by FTZB Order No. 1837 dated June 18, 2012. . The grant shall not be sold, conveyed, transferred, set over or assigned [19 USC 81q].
4.2 U.S. Customs and Border Protection Authority
The rules, regulations and rates provided in this Schedule do not supersede USCBP Rules and Regulations. Any new measures, rulings or determinations made by USCBP will apply.
4.3 Statutory and Regulatory Authority
- Foreign Trade Zones Act [19 USC 81(a) – 81(u)]
- Regulations of the Foreign-Trade Zones Board [15 CFR Part 400]
- U.S. Customs and Border Protection Regulations [19 CFR Part 146]
- Florida Statutes [Chapter 288, s.288.35 through s.288.38]
6.1 Authority Granted
The Grantee grants the FTZ Operator the authority to utilize the Zone Site as a FTZ subject to the terms and conditions set forth in the Operating Agreement executed between the Grantee and the FTZ Operator.
6.2 Authority Accepted
7.1 Grantee Liability
USCBP holds the FTZ Operator and its surety responsible for compliance with the USCBP Regulations through the conditions of the FTZ Operator Bond [19 CFR 113.73]. A grant of authority, per se, shall not be construed to make the Grantee liable for violations by zone participants [15 CFR 400.46(a)]. A Grantee could create liability for itself that otherwise would not exist if the Grantee undertakes detailed operational oversight of or direction to zone participants. Examples of detailed operational oversight or direction include review of an operator's inventory-control or record-keeping systems, specifying requirements for such a system to be used by an operator, and review of USCBP documentation related to an operator's zone receipts and shipments [15 CFR 400.46(b)].
7.2 FTZ Operator Liability
An FTZ Operator agrees to terms and conditions set forth within the Operator’s Operating Agreement that covers the development and operational management of FTZ activities at their designated Zone Site(s). Operations will be consistent and in accordance with standards of operation required by USCBP and the FTZB, including those related to occupancy and use.
7.3 Indemnification
The FTZ Operator agrees to protect, save, defend, indemnify, and hold harmless the Grantee, its elected officials, employees, and agents from and against any and all loss, claims, damage, and liability, including attorney fees and costs at the trial and appellate levels, whether insured or not, arising out of or incident to any acts, omission, neglect, or operations of the FTZ Operator at the Zone Site. This includes, but is not limited to, FTZ Operator liabilities under the FTZ Operator’s Bond, including liquidated damages, as well as all other penalties and/or fines for violations of USCBP Regulations governing FTZ activities. Nothing stated within this paragraph shall be deemed to exculpate or relieve the Grantee from liability from the negligent acts of Grantee.
7.4 Insurance
8.1 Magnet Sites
SITE 3: Melbourne Orlando International Airport (1,820 acres).
8.2 Usage Driven Sites
SITE 8: Raider Outboards Inc (0.46 acres).
8.3 List of Operators (current as of the Effective Date)
| Operator | Site Location | Status |
American Cruise-Aid Logistics, Inc. 405 Atlantis Road, Suite 101 Cape Canaveral, FL 32920 | Magnet Site No. 1 | Activated November 7, 2007 |
Seaport Canaveral Corp. 555 Hwy. 401 Cape Canaveral, FL 32920-4438 | Magnet Site No. 1 | Activated May 4, 2010 |
Airbus U.S. Space & Defense, Inc. 8301 NewSpace Drive Merritt Island, FL 32953 | Usage Driven Site No. 7 | Activated March 11, 2019 |
Raider Outboards Inc 1885 Armstrong Drive Titusville, FL 32780 | Usage Driven Site No. 8 | Activated May 25, 2021 |
City of Melbourne Airport Authority 800 W. Nasa Blvd. Melbourne, FL 32901 | Magnet Site No. 3 | Activated June 28, 2022 |
Property Owners and FTZ Operators shall pay the CPA for services rendered at the rate published in the following charts. Fees are based upon staff time and services involved and exclude additional out-of- pocket expenses including FTZB application fees, legal expenses, and engineering and/or surveying services.
| Magnet Site | |
| Sponsorship of Submissions to FTZB: | |
| Establishment of a new Magnet Site | $15,000 |
| Expansion/Reorganization of Existing Magnet Site | $7,500 |
| Request for Production Authority | $2,500 |
| Annual Fees1: | |
|---|---|
| Annual Fee for Activated Magnet Site (billed annually in January) | $5,000 (per site) |
| Usage Driven Site | |
| Sponsorship of Submissions to FTZB: | |
| Establishment of a new Usage Driven Site | $5,000 (per site) |
| Expansion of Existing Usage Driven Site | $2,500 (per site) |
| Request for Production Authority | $2,500 |
| Annual Fees1: | |
| Annual Fee for Activated Usage Driven Site (billed annually in January) | $5,000 (per site) |
9.1 Late Fee Assessment
All invoices unpaid on the 30th calendar day following the day on which the invoice was issued or the debt was due are delinquent. Delinquent accounts shall incur (as liquidated damages) a late charge of one and one-half percent (1-½%) for each month, eighteen percent (18%) per year, simple interest, on any portion of said bill which remains delinquent.
9.2 Non-Payment of Fees
The CPA reserves the right to terminate any Operating Agreement or Property Owner Agreement or otherwise deny any Operator or Property Owner the use of FTZ No. 136 as a result of the failure of Operator or Property Owner to pay fees due Grantee.
9.3 FTZ Operator Fees
The following rules governing procedures within FTZ No. 136 are issued in conformity with and supplementary to the Act and Regulations and such of the United States Statutes and Regulations relating to the Port of Entry that are applicable to FTZ Operations.
The Internal Rules section of this Schedule is divided as follows: General Operations; Improvements; Record Keeping; Advertising; Administrative Expense; Indemnification; and Insurance.
10.1 General Operations
10.1.1. Qualifications
Persons and business entities may qualify as an Operator of FTZ No. 136 provided that they are located within Grantee’s Service Area, have satisfied all requirements imposed by USCBP, executed the necessary Operating Agreement with the Grantee, filed a Schedule of Rates and Fees with the Grantee (this is needed if the Operator has a clause in its FTZ Operating Agreement to provide FTZ services to the public at large), and met all additional laws and regulations imposed by agencies having jurisdiction over their activities.
10.1.2. FTZ Operations Manual
The FTZ Operator shall establish standards of operation and management and will document them in a FTZ Operations Manual. The manual will conform to requirements of the FTZB and USCBP and will apply to the admittance of all persons, firms and corporations to such premises.
10.1.3. Right of Entry
Representatives of the Grantee, FTZB, USCBP and other authorized U.S. Government Officers, shall have the right to enter the Zone Site at any time for the authorized and lawful purpose of examining the Zone Site, conferring with the FTZ Operator, its agents, invitees and employees on the premises, inspecting and checking operations, supplies, equipment and merchandise, and determining whether the business is being conducted in accordance with the procedures established in the Operations Manual, the Operating Agreement and pursuant to USCBP and FTZ Regulations. All such entries shall be in accordance with the established security procedures and with reasonable advance notice to the FTZ Operator.
10.1.4. Performance
The FTZ Operator agrees to promptly undertake its best efforts to initiate FTZ operations. The Grantee agrees to provide necessary support for the FTZ Operator’s efforts.
10.1.5. Expansion
The FTZ Operator will respond, in a timely manner, to future growth in market demand for leased space and facilities within the Zone Site including requesting expansion of facilities as deemed necessary and economically practicable by the FTZ Operator in consultation with Grantee.
10.1.6. Application to FTZB
The Grantee shall have the sole ability to file applications with the FTZB requesting modifications to Grants of Authority. Requests to modify Grant may include expansions, boundary modifications, Usage Driven Site applications and/or changes in scope of authority.
10.1.7. Prohibited Uses
FTZ No. 136 shall not be used to circumvent trade laws and directives of the United States nor shall it be used for any activities that do not comply with other applicable laws and regulations.
No retail trade shall be conducted within any Activated Areas except as approved by the FTZB and USCBP with concurrence from the Grantee.
10.2 Improvements
10.2.1. Immediate Improvements
The FTZ Operator agrees to construct the improvements and facilities at the Zone Site required by the FTZB and to conform with USCBP security requirements for Activation of the Zone Site. The FTZ Operator further agrees to commence business as soon as practicable following the completion of such improvements.
10.2.2. Improvements Generally
The FTZ Operator agrees not to construct any additional Zone Site facility or make any substantial alterations to the improvements referred to above in Immediate Improvements, unless plans and specifications are first concurred with by the Grantee, FTZB, and USCBP as required by law.
10.2.3. Repairs and Maintenance
The FTZ Operator will repair and maintain the premises in a clean and orderly condition consistent with the nature of the operations at the Zone Site.
10.3 Recordkeeping
The Grantee is responsible for preparing and filing with the FTZB an Annual Report summarizing all Zone activity from January 1 through December 31 of each year. The report shall be filed by March 31 of each year pursuant to current requirements of the FTZB. In order for the Grantee to meet its responsibility in this regard, each Operator shall electronically submit its data to the Grantee through the Online FTZ Information System (OFIS) that has been created by the FTZB. Failure of an Operator to timely submit such data may result in penalties assessed by both the Grantee and the FTZB. The FTZ Operator shall be responsible for preparing a narrative and supplying photographs, as required, for the Annual Report to the FTZB. All financial and operations information concerning zone operations shall be kept confidential except that which is required to be made public by the FTZB. Any and all FTZ operations manuals, computer programs, computer reports and system designs developed by the FTZ Operator shall be kept confidential and will not be disclosed to any other entity, except for such information as shall be determined to be public information under federal, state or local laws.
All financial and accounting records concerning Zone Site 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.
Details of business operations of individual firms operating and using the Zone Site shall be kept confidential except for such information as shall be determined to be public information under federal, state or local laws.
10.4 Advertising
10.5 Administrative Expenses
10.5.1. Administrative Fees
The FTZ Operator agrees to pay or cause to be paid all costs, expenses and taxes (if any) incurred by the Zone Site operation including, but not limited to, construction, installation, improvements, security, maintenance, personnel and as otherwise provided herein. The FTZ Operator also agrees to pay the Grantee an annual fee. This fee shall be examined each January as to changes required by either party.
10.5.2. U.S. Customs & Border Protection Administration Expenses
The FTZ Operator shall pay or cause to be paid the full cost of all USCBP administrative fees attributable to the Zone Site operation via direct billing.
10.5.3. U.S. Customs & Border Protection Bond Expense
Port Canaveral’s Foreign Trade Zone #136, provides distinct advantages for businesses currently engaged in international trade or considering the possibilities.
Advantages of utilizing Foreign Trade Zone #136
- Duties are only due upon entry for U.S. consumption
- Defer the payment of duties while merchandise is stored in your site
- Reduce duties on merchandise assembled or manufactured into finished products
- Re-export goods duty-free
- Unlimited storage period
- Goods may be manufactured, cleaned, destroyed, sorted and/or assembled
Take advantage of the benefits with storing goods at a Foreign Trade Zone Warehouse
American Cruise-Aid Logistics offers a 24,500 square foot warehouse, located at Port Canaveral. Click here for more information.
Duty-Free Storage
Duty payment is deferred on items imported into an FTZ until they leave the FTZ for domestic sale. So, you can avoid tying up money in Customs duties on your inventory. Most quota restrictions do not apply to FTZs, so you also can store over-quota items here until needed.
No Duty on Domestic Content or Value Added
The value added to a product in an FTZ (including cost of labor, overhead and profit) are exempt from Customs duties, unlike value added in overseas production operations. The more activities you conduct within a zone, the more you save.
Relief From Inverted Tariffs
In some cases, a component item or raw material carries a higher duty rate than the finished product. To eliminate the penalty on American manufacturers of such products, FTZ rules allow participants to pay the duty rate applicable to either the component materials or their finished product, whichever is lower.
No Duty on Rejected or Defective Parts
If your imported merchandise is faulty, you can destroy it or return it for replacement without incurring duties. Outside an FTZ, you would pay double duties - on the defective item and on the replacement.
No Duty on Waste and Scrap
No duty is charged on most waste and scrap from production operations within an FTZ.
Reduced Processing Time and Fees
Under Weekly Entry procedures, zone users have the option of filing one Customs Entry per week rather than a separate Customs Entry for each entry into the U.S. If you make entry on multiple shipments each week, you will save substantially on processing time and fees.
Reduced Transit Time
"Direct Delivery" allows you to receive repetitive shipments of the same items into an FTZ without a formal Customs release. This eliminates time-consuming documents and physical inspections of every delivery and can shorten transit time.
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