a) Application

"Exhibition" means the display of merchandise in the zone to prospective buyers or other interested parties. Board approval must be received prior to changing previously approved processing or manufacturing operations to make new products, significantly expand production, change sourcing of materials to be used or source materials that will be subject to inverted tariffs (15 CFR 400.28(a)(2)(3)). The request will be submitted according to procedures shown in 15 CFR 400.32(b) and evaluated on the criteria shown in 15 CFR 400.31.

(a) Application - Prior to any action, the Operator shall file with the Port Director an application (or blanket application) on CBPF 216 for permission to manipulate, manufacture, destroy or exhibit merchandise in a zone (19 CFR 146.52(a), 146.9). For instructions in preparing CBPF 216, see Appendix FTZM. The description of the intended manipulation or manufacture should be detailed enough to enable the Port Director to determine whether a permit should be given. The Port Director may return the application to the Applicant for a more precise description, if needed to administer any law, regulation, or policy for which CBP is responsible.

A blanket application may be made for a period of up to one (1) year for a continuous or repetitive operation. If the operation is changed during the period so that the application as approved no longer describes the operation, a new application shall be filed (19 CFR 146.52(b)(2)).

(1) Exhibition and Examination - The User may, with the concurrence of the Operator and upon application approved by the Port Director on a CBPF 216, exhibit and examine merchandise in the zone, or allow prospective purchasers to examine merchandise in the zone.

(2) Samples – The User may, with the concurrence of the Operator and upon application approved by the Port Director on a CBPF 216, sample merchandise in the zone or allow perspective purchasers to sample merchandise and remove samples from the zone. Samples taken under the authority of this permit may be removed from the zone without payment of duty if (1) the merchandise is temporarily removed from the zone under the authorized temporary removal procedures; (2) sampling can be done without the need to repack the merchandise; and (3) the merchandise is not restricted merchandise.

Additionally samples may be removed from the zone under HS 9811.00.60. An entry must be filed for samples taken from the zone under this provision; all requirements of 9811.00.60 must be adhered to and each sample taken from the zone under this provision must be presented to an import specialist for approval of the mutilation.

Otherwise, the User must file a duty-paid consumption entry to obtain a permit to remove the sample.

(3) Temporary Removal - See Section 9.2 FTZM.

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