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Activity Code 4 – Foreign Trade Zone Operator Bond
Activity Code 4 – Foreign Trade Zone Operator Bond
19 CFR § 113.73 – May be written as a continuous bond only.
This bond guarantees the operation of a Foreign Trade Zone (FTZ) and guarantees FTZ operator will comply with CBP regulations for maintaining the FTZ. The FTZ is a designated area within the U.S. located in or near a CBP port of entry, but legally considered to be outside of customs territory for the purpose of tariff laws and entry procedures. FTZs are part of a duty deferral program and are subject to CBP jurisdiction. Generally, payment of duties and excise taxes on foreign merchandise admitted to a zone will be deferred until the goods are transferred from the zone to the customs territory for consumption.
An FTZ operator is required to secure a bond to assure compliance with Customs regulations. The minimum bond amount required by CBP is $50,000. However, the maximum amount is determined by each individual port director and therefore the limits may vary.
Roanoke is a long-time supporter of the National Association of Foreign Trade Zones and offers preferential pricing for surety bonds and insurance to their members.
Activity Code 16 (Importer Security Filing) obligations can also be secured by this bond.
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