Guidelines for Adjacency Requirement
Guidelines for Adjacency Requirement
The FTZ Act and regulations require that zone sites be within or adjacency to a U.S. Customs and Border Protection (CBP) port of entry, as listed and defined in part 101 of the U.S. Customs and Border Protection regulations (19 CFR §101.3).
The adjacency requirement can be satisfied if one of the following factors is met:
- The zone or subzone site is within the limits of a CBP port of entry (19 CFR §101.3).
- The zone or subzone site is within 60 statute miles of the outer limits of a Customs port of entry (19 CFR §101.3).
- The zone or subzone site is within 90 minutes’ driving time from the outer limits of a CBP port of entry (19 CFR §101.3) as verified or concurred upon by the CBP Port Director.
For subzones only: if a subzone site does not meet the adjacency requirement based on one of the above three factors, it may alternatively qualify to be considered adjacent if the CBP Port Director agrees that the three special customs oversight factors are met. These factors are listed in the FTZ Board regulations (15 CFR § 400.11 (b)(2)(ii)):
(A) Proper CBP oversight can be accomplished with physical and electronic means;
(B) All electronically produced records are maintained in a format compatible with the requirements of CBP for the duration of the record period; and
(C) The operator agrees to present merchandise for examination at a CBP site selected by CBP when requested, and further agrees to present all necessary documents directly to the relevant CBP oversight office.