The Foreign Trade Zones (FTZ's) program was authorized by the U.S. Congress in 1934 (FTZ Act - 19 USC 81a-81u) and is used to help encourage activity and value add at U.S. facilities in competition with foreign alternatives by allowing delayed or reduced duty payments on foreign merchandise, as well as other savings.
The Foreign-Trade Zones Board is comprised of the U.S. Secretary of Commerce and the U.S. Secretary of the Treasury. The Board is chaired by the U.S. Secretary of Commerce. The Commissioner of U.S. Customs and Border Protection also plays a key role, as it did prior to its move from the U.S. Treasury Department to the U.S. Department of Homeland Security, providing a position during the FTZ Board voting process with respect to customs security, control, and resource matters. The Board has delegated action authority on most matters to a Committee of Alternates, which is composed of the Assistant Secretary of Commerce for Enforcement and Compliance as well as the Deputy Assistant Secretary of the Treasury for Tax, Trade, and Tariff Policy.
For more information on the FTZ program, please visit the U.S. Department of Commerce FTZ Board page here.