Change of Zone Status within an FTZ

This feature enables you to change the zone status of inventory within a Foreign Trade Zone (FTZ). Customs regulations may restrict certain zone status transitions for goods. For example, non-processed goods may enter an FTZ with a zone status of "non-privileged foreign." Later, you may wish to change their status to "privileged foreign." GTM supports these transitions by using declarations and validating that the desired zone status is permitted based on the prior zone status.

The following enhancements are included:

• Define Allowed Prior Zone Status: Specify which prior zone statuses are permitted for each new status.
• Declaration Line Enhancements: Includes a new Prior Zone Status field and a Reference Number Qualifier for Prior Declaration Line Number.

Define Allowed Prior Zone Status

A new grid, Allowed Prior Zone Status, is now available on the Declaration Type. This grid allows you to define which prior zone statuses are valid when transitioning to a different zone status. If a declaration type includes zone status mapping, GTM validates these transitions during reconciliation. Specifically, an exit declaration line with a specified zone status can only be reconciled with inventory items that have a zone status permitted by the defined Allowed Prior Zone Status.

Declaration Type - Allowed Prior Zone Status

Declaration to Transition to New Zone Status

Once the Allowed Prior Zone Status is mapped, you can use a declaration to transition inventory from one zone status to another. When creating the declaration, each line transitioning to a new zone status must have a Trade Incentive Program Zone Status defined, along with other required information such as quantity.

Declaration Line with Trade Incentive Program Zone Status

After you create the declaration, you can run the Perform Entry/Exit Recording action to reconcile the zone status transition with inventories in the FTZ. This process deducts the specified quantity from the original zone status and creates a new inventory record with the same quantity for the new zone status.

GTM identifies matching inventories based on item, trade incentive program, and inventory organization. It then uses the Allowed Prior Zone Status defined in the declaration type to determine which inventories are eligible for transition to the new zone status.

For example, if you have imported 2,000 EA of PI-PCB BOARDs into the FTZ as Non-Privileged Foreign, and you change the zone status for 200 EA to Privileged Foreign, the Trade Incentive Program Inventories finder will display both the original admission (ID ending in 0796) and the zone status change (ID ending in 807), reflecting the updated quantities.

Trade Incentive Program Inventories

For declarations involving a transition between zone statuses:

• A declaration line is created for each inventory item with an Allowed Prior Zone Status.
• On the new declaration line(s):
  • The Trade Incentive Program Zone Status is updated.
  • The new Prior Zone Status field is populated with the zone status from the matching inventory.
  • The new Reference Number Qualifier for Prior Declaration Line Number is populated with the original declaration line number.
  • A new inventory record is created for each declaration line.

Declaration Line - Change Zone Status

Business Benefit: This feature streamlines compliance and operational efficiency for organizations managing inventory in Foreign Trade Zones (FTZs). By enabling the controlled change of zone status for goods in an FTZ, it ensures that all status transitions adhere to customs regulations and regime restrictions.

Steps to Enable and Configure

You don't need to do anything to enable this feature.

Key Resources

For more information on trade incentive programs, refer to the GTM How To/Configuration Topic called "Trade Incentive Programs".