AGENDA

Zone entries/withdrawals - Entry Process

Advantages of Using a Foreign Trade Zone

Yacht Importations and Process

The process includes:

1. Foreign Trade Zone entries2. Foreign Trade Zone withdrawals3. In-bond movement of cargo4. Consumption entry of merchandise5. Distribution of merchandise

ZONE ENTRIES/WITHDRAWALS – THE PROCESS

1. ENTRIES

CBP Form – 214

• This form allows your merchandise to enter the Foreign Trade Zone and is created by the zone operator. It consists of a complete description and piece count of the items being entered into the Foreign Trade Zone. The 214 is then presented to CBP for review and subsequent approval.

• To create this form the following must be provided:A commercial invoice from the manufacturer/supplier, listing the buyer/consignee. It must also contain a detailed description of each item, serial numbers (if applicable), piece count, unit price and extended price as well as country of manufacture for each item.

CBP Form – 7512

• This form is prepared by ourselves (VANDEGRIFT) and allows your merchandise to transit, under bond, from the airport/seaport to the foreign trade zone without having to file a consumption entry and pay duty with CBP. This form will also be mentioned again in the withdrawals section.

ZONE ENTRIES/WITHDRAWALS – THE PROCESS

2. WITHDRAWALS

CBP Form – 216

This form allows you to remove one, several or all items from the zone and is prepared by the zone operator.

To create this form the following must be provided:

• A complete listing of all items to be removed• Whom they are being sold to or where they are being moved

to in-bond

ZONE ENTRIES/WITHDRAWALS – THE PROCESS

3. IN-BOND MOVEMENT

CBP Form – 7512

This form is prepared by ourselves (VANDEGRIFT) and allows you to move items in-bond from the foreign trade zone, without having to enter them into the US and pay duties and taxes, to either a foreign flag vessel (ships spares) or to an airline or cargo ship to be exported out of the US.

ZONE ENTRIES/WITHDRAWALS – THE PROCESS

4. CONSUMPTION ENTRY

CBP Form – 3461

This form is required for any items being withdrawn from the foreign trade zone and being sold to an individual or company in the US and will require the payment of duties and taxes.

ZONE ENTRIES/WITHDRAWALS – THE PROCESS

5. DISTRIBUTION

In-bond moves, consumption entries and distribution go hand in hand.

When you are ready to distribute some or all of your merchandise, whether it was sold to a domestic US purchaser or a foreign flag vessel, you must first start with a list of items sold and to whom.

The FTZ operator will then start the distribution process by issuing the CBP Form - 216, presenting it to CBP for processing. Then VANDEGRIFT will issue either a CBP Form- 7512 or prepare a CBP form - 3461.

VANDEGRIFT will also arrange for your domestic or international transportation, whether it be over the road, via air or via ocean.

ZONE ENTRIES/WITHDRAWALS – THE PROCESS

• Inventory control

• No time limit

• Security

• No duties & taxes while in the zone

• Picking, packing and distribution

• Limited exposure to overhead cost and operating expenses

ADVANTAGES OF USING A FOREIGN TRADE ZONE

Yacht Importations and the Process

YACHT IMPORTATIONS AND THE PROCESS

Yacht importations are broken up into several categories:

1. Temporary importations (TIB)

2. Dutiable importations

3. Duty free importations (Trade agreements)

4. Boat show bonds (BSB)

YACHT IMPORTATIONS AND THE PROCESS

1. Temporary Importations under bond (TIB)

There are several TIB options, the two most commonly used for yachts are;• entered for repairs• entered as a sample for the purpose of taking orders

a TIB is only good for one year and can be extended up to 2 additional years by submitting a letter requesting the extension and the reason why at the end of the first and second years. The extension is not automatic and must be approved by CBP. No cruising permit can be issued and the vessel cannot be used for anything other than display. A TIB is closed when the vessel is exported under CBP supervision and proof of arrival into a foreign country is submitted and accepted by CBP.

YACHT IMPORTATIONS AND THE PROCESS

2. Dutiable importations

All yachts, with the exception of those from countries with a trade agreement, are subject to a 1.5% duty on the invoice value, minus the cost of freight and insurance.

Additionally they are subject to a Merchandise Processing Fee (MPF) of .21% (max cap at $485) and those arriving by cargo ship are subject to a Harbor Maintenance Fee (HMF) of .125% ( no max cap).

YACHT IMPORTATIONS AND THE PROCESS

3. Duty free importations (Trade agreements)

Yachts manufactured in a country that has a free trade agreement with the US or are eligible for GSP are afforded duty free entry if they meet certain criteria.

One criteria is that they must be manufactured in that country and arrive into the US directly from that country. It can be aboard a cargo ship or on their own bottom.

Three main yacht manufacturing countries that currently have a free trade agreement or are eligible for GSP with the US are: Australia, South Africa and Turkey.

YACHT IMPORTATIONS AND THE PROCESS

4. Boat show bonds (BSB)

An otherwise dutiable vessel used primarily for recreation or pleasure and exceeding 79’ in length that has been previously sold by a manufacturer or dealer to a retail consumer and that is imported with the intention to offer for sale at a boat show in the United States may qualify at the time of importation for a deferral of entry and deposit of duty.

There are qualifying factors that must be met as well.

It is also important to note that once a yacht is exported and the BSB is cancelled, a new BSB cannot be issued for 3 months and then only in conjunction with being entered into a boat show.  You cannot simply opt for a BSB so you can offer your boat for sale in US waters to US citizens in lieu of entering and paying duty.

YACHT IMPORTATIONS AND THE PROCESS

VANDEGRIFT has 57 years of experience, 52 of those years right here in Port Everglades.

We are well versed in yacht, yacht parts and aircraft importations as well as general commodities.

Our staff is well trained and experienced.

We offer services in the following ports: Annapolis, Baltimore, Boston, Newport RI, Norfolk Va, Los Angeles, San Diego, Ft. Lauderdale, Miami, Palm Beach, New York, New Jersey and San Francisco.