On Friday, the International Trade Administration of the US Department of Commerce announced the first regulatory overhaul to the Foreign Trade Zone (FTZ) program in 20 years, cutting the standard processing time for many FTZ applications in half.First established by the FTZ Act of 1934, the FTZ program boosts the US economy by enhancing US manufacturers' competitiveness, helping to maintain manufacturing and processing activity in the United States, and creating jobs in the communities where they are located. The FTZ Board--chaired by the Department of Commerce--issued new regulations which are designed to improve the FTZ program's flexibility and responsiveness, enhance ease-of-use for applicants, and promote even greater transparency for both stakeholders and the public.
The new regulations replace the prior manufacturing-approval procedures with a much simpler and faster standard notification process. The prior process involved a complex application format and an ordinary 12-month timeframe for the Board to process applications. The new rule will reduce the ordinary processing time for notifications to 120 days.
"The change is in direct compliance with President Obama's directive to reduce unnecessarily burdensome regulatory practices," said Paul Piquado, Assistant Secretary for the Import Administration at the International Trade Administration. "The new rule streamlines the FTZ application process for companies by cutting process times in half. This is a perfect example of the Obama Administration supporting US businesses that are looking to expand and create jobs through international trade."