Foreign Trade Zone Manual

Merchandise which the Port Director has reason to believe has been, or will be, described inaccurately or incompletely in admission documentation presented by the Operator as set forth in 19 CFR 146.40. (ii) The merchandise to be admitted to the zone, and the operations to be conducted therein, are known well in advance, are predictable and stable over the long term, and are relatively fixed in variety by the nature of the business conducted at the site (19 CFR 146.39(c)(2)). Any new class or kind of merchandise must first be approved in writing by the Board. This criterion excludes from consideration any merchandise not within the scope of authority as set out in the application to the Board and approved by the Board Order. CBP must have an opportunity to examine and become familiar with any such merchandise before it may be included in an application for direct delivery. Supplemental applications for direct delivery procedures may be filed for any merchandise meeting the requirements and not included in the original application. (iii) The Operator is the owner or purchaser of the goods (19 CFR 146.39(c)(3)). A finding as to whether the Operator is the owner or purchaser of the goods is determined by CBP interpretation as to what constitutes the "owner or purchaser" under 19 U.S.C. §1484(a)(2)(B) and CD 099 3530-002. The Port Director may demand documentation to ascertain the Operator is the owner or purchaser of the goods. There may be more than one Operator of a general purpose zone.

(2) Decision on Application - The Port Director shall approve the application for direct delivery procedures if the criteria in 19 CFR 146.39(c) are met. The Port Director shall promptly notify the Operator in writing of CBP’s decision on the application. If the application is denied, the Port Director shall specify the reason for denial in his reply. The Port Director s decision will constitute the final CBP administrative determination concerning the application (19 CFR 146.39(d)).

(3) Revocation of Approval - The Port Director may revoke the approval given under this section if it becomes necessary for CBP to routinely examine the merchandise or documentation before or upon admission to the zone (19 CFR 146. 39(e)). The revocation may cover all or part of the merchandise for which approval for direct delivery had previously been given. Upon revocation, the merchandise may be admitted to the zone only under a prior permit issued under 19 CFR 146.32(c). (b) Direct Delivery Procedures - The primary responsibility for direct delivery procedures rests with the Operator, as a means of expediting the delivery of merchandise to the zone without having to await a prior approval for admission by CBP. If a shipment to be admitted to a zone includes both merchandise approved for direct delivery procedures and merchandise not approved for direct delivery procedures, none of the 78