19 U.S.C. § 81c — Exemption from customs laws of merchan-

Page 33 TITLE 19—CUSTOMS DUTIES § 81c territory adjacent thereto. Zones in addition to those to which a port of entry is entitled shall be authorized only if the Board finds that exist- ing or authorized zones will not adequately serve the convenience of commerce. (c) Preference to public corporations In granting applications preference shall be given to public corporations. (d) Ownership of harbor facilities by State In case of any State in which harbor facilities of any port of entry are owned and controlled by the State and in which State harbor facilities of any other port of entry are owned and controlled by a municipality, the Board shall not grant an application by any public corporation for the es- tablishment of any zone in such State, unless such application has been authorized by an Act of the legislature of such State (enacted after June 18, 1934). (June 18, 1934, ch. 590, § 2, 48 Stat. 999.) § 81c. Exemption from customs laws of merchan- dise brought into foreign trade zone (a) Handling of merchandise in zone; shipment of foreign merchandise into customs territory; appraisal; reshipment to zone Foreign and domestic merchandise of every description, except such as is prohibited by law, may, without being subject to the customs laws of the United States, except as otherwise pro- vided in this chapter, be brought into a zone and may be stored, sold, exhibited, broken up, re- packed, assembled, distributed, sorted, graded, cleaned, mixed with foreign or domestic mer- chandise, or otherwise manipulated, or be manu- factured except as otherwise provided in this chapter, and be exported, destroyed, or sent into customs territory of the United States there- from, in the original package or otherwise; but when foreign merchandise is so sent from a zone into customs territory of the United States it shall be subject to the laws and regulations of the United States affecting imported merchan- dise: Provided, That whenever the privilege shall be requested and there has been no manipula- tion or manufacture effecting a change in tariff classification, the appropriate customs officer shall take under supervision any lot or part of a lot of foreign merchandise in a zone, cause it to be appraised and taxes determined and duties liquidated thereon. Merchandise so taken under supervision may be stored, manipulated, or manufactured under the supervision and regula- tions prescribed by the Secretary of the Treas- ury, and whether mixed or manufactured with domestic merchandise or not may, under regula- tions prescribed by the Secretary of the Treas- ury, be exported or destroyed, or may be sent into customs territory upon the payment of such liquidated duties and determined taxes thereon. If merchandise so taken under super- vision has been manipulated or manufactured, such duties and taxes shall be payable on the quantity of such foreign merchandise used in the manipulation or manufacture of the entered article. Allowance shall be made for recoverable and irrecoverable waste; and if recoverable waste is sent into customs territory, it shall be dutiable and taxable in its condition and quan- tity and at its weight at the time of entry. Where two or more products result from the ma- nipulation or manufacture of merchandise in a zone the liquidated duties and determined taxes shall be distributed to the several products in accordance with their relative value at the time of separation with due allowance for waste as provided for above: Provided further, That sub- ject to such regulations respecting identity and the safeguarding of the revenue as the Secretary of the Treasury may deem necessary, articles, the growth, product, or manufacture of the United States, on which all internal-revenue taxes have been paid, if subject thereto, and ar- ticles previously imported on which duty and/or tax has been paid, or which have been admitted free of duty and tax, may be taken into a zone from the customs territory of the United States, placed under the supervision of the appropriate customs officer, and whether or not they have been combined with or made part, while in such zone, of other articles, may be brought back thereto free of quotas, duty, or tax: Provided fur- ther, That if in the opinion of the Secretary of the Treasury their identity has been lost, such articles not entitled to free entry by reason of noncompliance with the requirements made hereunder by the Secretary of the Treasury shall be treated when they reenter customs ter- ritory of the United States as foreign merchan- dise under the provisions of the tariff and inter- nal-revenue laws in force at that time: Provided further, That under the rules and regulations of the controlling Federal agencies, articles which have been taken into a zone from customs terri- tory for the sole purpose of exportation, destruc- tion (except destruction of distilled spirits, wines, and fermented malt liquors), or storage shall be considered to be exported for the pur- pose of— (1) the draw-back, warehousing, and bonding, or any other provisions of the Tariff Act of 1930, as amended, and the regulations there- under; and (2) the statutes and bonds exacted for the payment of draw-back, refund, or exemption from liability for internal-revenue taxes and for the purposes of the internal-revenue laws generally and the regulations thereunder. Such a transfer may also be considered an ex- portation for the purposes of other Federal laws insofar as Federal agencies charged with the en- forcement of those laws deem it advisable. Such articles may not be returned to customs terri- tory for domestic consumption except where the Foreign-Trade Zones Board deems such return to be in the public interest, in which event the articles shall be subject to the provisions of paragraph 1615(f) of section 1201 of this title: Provided further, That no operation involving any foreign or domestic merchandise brought into a zone which operation would be subject to any provision or provisions of section 1807, chap- ter 15, chapter 16, chapter 17, chapter 21, chapter 23, chapter 24, chapter 25, chapter 26, or chapter 32 of the Internal Revenue Code if performed in customs territory, or involving the manufacture of any article provided for in paragraphs 367 or 368 of section 1001 of this title, shall be per- mitted in a zone except those operations (other than rectification of distilled spirits and wines, Page 34 TITLE 19—CUSTOMS DUTIES § 81c or the manufacture or production of alcoholic products unfit for beverage purposes) which were permissible under this chapter prior to July 1, 1949: Provided further, That articles pro- duced or manufactured in a zone and exported therefrom shall on subsequent importation into the customs territory of the United States be subject to the import laws applicable to like ar- ticles manufactured in a foreign country, except that articles produced or manufactured in a zone exclusively with the use of domestic mer- chandise, the identity of which has been main- tained in accordance with the second proviso of this section may, on such importation, be en- tered as American goods returned: Provided, fur- ther, That no merchandise that consists of goods subject to USMCA drawback, as defined in sec- tion 4534(a) of this title, that is manufactured or otherwise changed in condition shall be exported to a USMCA country, as defined in section 4502 of this title, without an assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of its exportation (or if the privilege in the first proviso to this subsection was requested, an assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of its admission into the zone) and the payment of the assessed duty before the 61st day after the date of exportation of the article, except that upon the presentation, before such 61st day, of satis- factory evidence of the amount of any customs duties paid or owed to the USMCA country on the article, the customs duty may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of (1) the total amount of customs duties paid or owed on the merchandise on importation into the United States, or (2) the total amount of customs duties paid on the article to the USMCA country: Provided, further, That, if Can- ada ceases to be a USMCA country and the sus- pension of the operation of the United States- Canada Free-Trade Agreement thereafter termi- nates, with the exception of drawback eligible goods under section 204(a) of the United States- Canada Free-Trade Agreement Implementation Act of 1988, no article manufactured or other- wise changed in condition (except a change by cleaning, testing or repacking) shall be exported to Canada during the period such Agreement is in operation without the payment of a duty that shall be payable on the article in its condition and quantity, and at its weight, at the time of its exportation to Canada unless the privilege in the first proviso to this subsection was re- quested: Provided further, That no merchandise that consists of goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Im- plementation Act, that is manufactured or oth- erwise changed in condition shall be exported to Chile without an assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of its exportation (or if the privilege in the first proviso to this sub- section was requested, an assessment of a duty on the merchandise in its condition and quan- tity, and at its weight, at the time of its admis- sion into the zone) and the payment of the as- sessed duty before the 61st day after the date of exportation of the article, except that the cus- toms duty may be waived or reduced by (1) 100 percent during the 8-year period beginning on January 1, 2004; (2) 75 percent during the 1-year period beginning on January 1, 2012; (3) 50 per- cent during the 1-year period beginning on Janu- ary 1, 2013; and (4) 25 percent during the 1-year period beginning on January 1, 2014. (b) Applicability to bicycle component parts The exemption from the customs laws of the United States provided under subsection (a) shall not be available on or before December 31, 1992, to bicycle component parts unless such parts are reexported from the United States, whether in the original package, as components of a completely assembled bicycle, or otherwise. (c) Articles manufactured or produced from de- natured distilled spirits withdrawn free of tax from distilled spirits plant; products unfit for beverage purposes (1) Notwithstanding the provisions of the fifth proviso of subsection (a), any article (within the meaning of section 5002(a)(14) of title 26) may be manufactured or produced from denatured dis- tilled spirits which have been withdrawn free of tax from a distilled spirits plant (within the meaning of section 5002(a)(1) of title 26), and ar- ticles thereof, in a zone. (2) Notwithstanding the provisions of the fifth proviso of subsection (a), distilled spirits which have been removed from a distilled spirits plant (as defined in section 5002(a)(1) of title 26) upon payment or determination of tax may be used in the manufacture or production of medicines, medicinal preparation, food products, flavors, or flavoring extracts, which are unfit for beverage purposes, in a zone. Such products will be eligi- ble for drawback under the internal revenue laws under the same conditions applicable to similar manufacturing or production operations occurring in customs territory. (d) Foreign trade zones In regard to the calculation of relative values in the operations of petroleum refineries in a foreign trade zone, the time of separation is de- fined as the entire manufacturing period. The price of products required for computing rel- ative values shall be the average per unit value of each product for the manufacturing period. Definition and attribution of products to feed- stocks for petroleum manufacturing may be ei- ther in accordance with Industry Standards of Potential Production on a Practical Operating Basis as verified and adopted by the Secretary of the Treasury (known as producibility) or such other inventory control method as approved by the Secretary of the Treasury that protects the revenue. (e) Production equipment (1) In general Notwithstanding any other provision of law, if all applicable customs laws are complied with (except as otherwise provided in this sub- section), merchandise which is admitted into a foreign trade zone for use within such zone as production equipment or as parts for such equipment, shall not be subject to duty until such merchandise is completely assembled, in- Page 35 TITLE 19—CUSTOMS DUTIES § 81c stalled, tested, and used in the production for which it was admitted. (2) Admission procedures The person who admits the merchandise de- scribed in paragraph (1) into the zone shall, at the time of such admission, certify to the Cus- toms Service that the merchandise is admit- ted into the zone pursuant to this subsection for use within the zone as production equip- ment or as parts for such equipment and that the merchandise will be entered and estimated duties deposited when use of the merchandise in production begins. (3) Entry procedures At the time use of the merchandise in pro- duction begins, the merchandise shall be en- tered, as provided for in section 484 of the Tar- iff Act of 1930 [19 U.S.C. 1484], and estimated duties shall be deposited with the Customs Service. The merchandise shall be subject to tariff classification according to its character, condition, and quantity, and at the rate of duty applicable, at the time use of the mer- chandise in production begins. (4) Foreign trade zone For purposes of this subsection, the term ‘‘foreign trade zone’’ includes a subzone. (June 18, 1934, ch. 590, § 3, 48 Stat. 999; June 17, 1950, ch. 296, § 1, 64 Stat. 246; Pub. L. 91–271, title III, § 309, June 2, 1970, 84 Stat. 292; Pub. L. 98–573, title II, § 231(a)(2), Oct. 30, 1984, 98 Stat. 2990; Pub. L. 99–514, title XVIII, § 1894, Oct. 22, 1986, 100 Stat. 2931; Pub. L. 100–418, title I, § 1783(f), Aug. 23, 1988, 102 Stat. 1300; Pub. L. 100–449, title II, § 204(c)(5), Sept. 28, 1988, 102 Stat. 1863; Pub. L. 100–647, title IX, § 9002, Nov. 10, 1988, 102 Stat. 3808; Pub. L. 101–382, title III, §§ 481, 484F, Aug. 20, 1990, 104 Stat. 706, 710; Pub. L. 103–182, title II, § 203(b)(5), Dec. 8, 1993, 107 Stat. 2091; Pub. L. 104–295, § 31(a), Oct. 11, 1996, 110 Stat. 3536; Pub. L. 106–36, title I, § 1001(b)(2), June 25, 1999, 113 Stat. 131; Pub. L. 108–77, title II, § 203(b)(5), Sept. 3, 2003, 117 Stat. 929; Pub. L. 116–113, title V, § 501(e)(5), Jan. 29, 2020, 134 Stat. 69; Pub. L. 116–260, div. O, title VI, § 601(c)(2)(B), Dec. 27, 2020, 134 Stat. 2150.) AMENDMENT OF SECTION For termination of amendment by section 107(c) of Pub. L. 108–77, see Effective and Ter- mination Dates of 2003 Amendment note below. For termination of amendment by section 501(c) of Pub. L. 100–449, see Effective and Ter- mination Dates of 1988 Amendment note below. Editorial Notes REFERENCES IN TEXT The Tariff Act of 1930, referred to in subsec. (a)(1), is act June 17, 1930, ch. 497, 46 Stat. 590, which is classified generally to chapter 4 (§ 1202 et seq.) of this title. For complete classification of this Act to the Code, see Ta- bles. Sections 1001 and 1201 of this title, referred to in sub- sec. (a), which comprised the dutiable and free lists for articles imported into the United States, were repealed by Pub. L. 87–456, title I, § 101(a), May 24, 1962, 76 Stat. 72, which act also revised the Tariff Schedules of the United States. The Tariff Schedules of the United States were replaced by the Harmonized Tariff Sched- ule of the United States which is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title. References in subsec. (a) to section and chapters of the Internal Revenue Code are references to section and chapters of the Internal Revenue Code, 1939, which was repealed by section 7851 of Title 26, I.R.C. 1954. The In- ternal Revenue Code of 1954 was redesignated the Inter- nal Revenue Code of 1986 by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095. Corresponding sections of I.R.C. 1986 to section and chapters of I.R.C. 1939 referred to in the text are set out below. For provision deeming a ref- erence in other laws to a provision of I.R.C. 1939, also as a reference to corresponding provision of I.R.C. 1986, see section 7852(b) of Title 26, I.R.C. 1986. Section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, referred to in subsec. (a), is section 203(a) of Pub. L. 108–77, which is set out in a note under section 3805 of this title. I.R.C. 1939 I.R.C. 1986 § 1807 ....................................... Omitted Chapter 15 ............................... § 5701 et seq. Chapter 16 ............................... § 4591 et seq., § 4811 et seq. Chapter 17 ............................... § 4831 et seq. Chapter 21 ............................... Omitted Chapter 23 ............................... § 4701 et seq. Chapter 24 ............................... § 4801 et seq. Chapter 25 ............................... §§ 4181, 4182, and 5811 et seq. Chapter 26 ............................... § 5001 et seq. Chapter 32 ............................... § 4501 et seq. Section 204 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in subsec. (a), is section 204 of Pub. L. 100–449, which is set out in a note under section 2112 of this title. AMENDMENTS 2020—Subsec. (a). Pub. L. 116–260 substituted ‘‘(subject to section 4534(e) of this title)’’ for ‘‘(subject to section 508(b)(2)(B) of the Tariff Act of 1930)’’ in seventh pro- viso. Pub. L. 116–113, which directed amendment of the flush text of subsec. ‘‘(a)(2)’’ by substituting ‘‘goods subject to USMCA drawback, as defined in section 4534(a) of this title’’ for ‘‘goods subject to NAFTA draw- back, as defined in section 3333(a) of this title’’, ‘‘a USMCA country, as defined in section 4502 of this title’’ for ‘‘a NAFTA country, as defined in section 3301(4) of this title’’, and ‘‘USMCA’’ for ‘‘NAFTA’’ wherever ap- pearing, was executed by making the substitutions in concluding provisions of subsec. (a), to reflect the prob- able intent of Congress. 2003—Subsec. (a). Pub. L. 108–77, §§ 107(c), 203(b)(5), temporarily inserted before period at end ‘‘Provided fur- ther, That no merchandise that consists of goods sub- ject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Im- plementation Act, that is manufactured or otherwise changed in condition shall be exported to Chile without an assessment of a duty on the merchandise in its con- dition and quantity, and at its weight, at the time of its exportation (or if the privilege in the first proviso to this subsection was requested, an assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of its admission into the zone) and the payment of the assessed duty before the 61st day after the date of exportation of the article, ex- cept that the customs duty may be waived or reduced by (1) 100 percent during the 8-year period beginning on January 1, 2004; (2) 75 percent during the 1-year period beginning on January 1, 2012; (3) 50 percent during the 1-year period beginning on January 1, 2013; and (4) 25 percent during the 1-year period beginning on January 1, 2014’’. See Effective and Termination Dates of 2003 Amendment note below. 1999—Subsec. (a). Pub. L. 106–36 struck out second pe- riod at end of last sentence. 1996—Subsec. (e). Pub. L. 104–295 added subsec. (e). 1993—Subsec. (a). Pub. L. 103–182, in provisions fol- lowing par. (2), inserted second proviso relating to goods subject to NAFTA drawback, and in last proviso Page 36 TITLE 19—CUSTOMS DUTIES § 81c inserted ‘‘, if Canada ceases to be a NAFTA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter termi- nates,’’ after ‘‘That’’ and substituted ‘‘during the pe- riod such Agreement is in operation’’ for ‘‘on or after January 1, 1994, or such later date as may be pro- claimed by the President under section 204(b)(2)(B) of such Act of 1988,’’. 1990—Subsec. (b). Pub. L. 101–382, § 481, substituted ‘‘on or before December 31, 1992’’ for ‘‘before January 1, 1991’’. Subsec. (c). Pub. L. 101–382, § 484F, designated existing provisions as par. (1), struck out ‘‘domestic’’ before ‘‘denatured distilled’’, inserted provisions relating to withdrawal free of tax from a distilled spirits plant, and added par. (2). 1988—Subsec. (a). Pub. L. 100–449 temporarily inserted provision directing that, ‘‘with the exception of draw- back eligible goods under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, no article manufactured or otherwise changed in condition (except a change by cleaning, testing or repacking) shall be exported to Canada on or after January 1, 1994, or such later date as may be pro- claimed by the President under section 204(b)(2)(B) of such Act of 1988, without the payment of a duty that shall be payable on the article in its condition and quantity, and at its weight, at the time of its expor- tation to Canada unless the privilege in the first pro- viso to this subsection was requested.’’ See Effective and Termination Dates of 1988 Amendment note below. Subsec. (b). Pub. L. 100–418 substituted ‘‘January 1, 1991’’ for ‘‘June 30, 1986’’. Subsec. (d). Pub. L. 100–647 added subsec. (d). 1986—Subsec. (c). Pub. L. 99–514 added subsec. (c). 1984—Subsec. (a). Pub. L. 98–573 designated existing provisions as subsec. (a), redesignated former pars. (a) and (b) as pars. (1) and (2), respectively, of subsec. (a), and added subsec. (b). 1970—Pub. L. 91–271 substituted references to the ap- propriate customs officers for references to the col- lector of customs wherever appearing. 1950—Act June 17, 1950, amended section generally to remove the prohibition against, and to authorize spe- cifically, manufacture and exhibition within a zone. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. O, title VI, § 601(h), Dec. 27, 2020, 134 Stat. 2152, provided that: ‘‘This section [amending this section, sections 1311 to 1313, 1508, 1520, 1562, 1677f, 3472, 3473, 4531, and 4534 of this title, and sections 290m to 290m–5 and 290m–7 of Title 22, Foreign Relations and Intercourse, and enacting provisions set out as a note under section 3472 of this title] and the amendments made by this section shall take effect on July 1, 2020.’’ Pub. L. 116–113, title V, § 501(g), Jan. 29, 2020, 134 Stat. 69, provided that: ‘‘(1) IN GENERAL.—Each transfer, redesignation, and amendment made by subsections (b) through (e) [amending this section and sections 1311 to 1313, 1562, 3333, and 4534 of this title] shall— ‘‘(A) take effect on the date on which the USMCA enters into force [July 1, 2020]; and ‘‘(B) apply with respect to a good entered, or with- drawn from warehouse for consumption, on or after that date. ‘‘(2) TRANSITION FROM NAFTA TREATMENT.—In the case of a good entered, or withdrawn from warehouse for consumption, before the date on which the USMCA en- ters into force— ‘‘(A) the amendments made by subsections (b) through (e) shall not apply with respect to the good; and ‘‘(B) the provisions of law amended by such sub- sections, as such provisions were in effect on the day before that date, shall continue to apply on and after that date with respect to the good.’’ [For definition of ‘‘USMCA’’ as used in section 501(g) of Pub. L. 116–113, set out above, see section 4502 of this title.] EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT Amendment by Pub. L. 108–77 effective on the date the United States-Chile Free Trade Agreement enters into force (Jan. 1, 2004), and to cease to be effective on the date the Agreement ceases to be in force, see sec- tion 107(a), (c) of Pub. L. 108–77, set out in a note under section 3805 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–295, § 31(b), Oct. 11, 1996, 110 Stat. 3537, pro- vided that: ‘‘The amendment made by this section [amending this section] shall apply with respect to merchandise admitted into a foreign trade zone after the date that is 15 days after the date of the enactment of this Act [Oct. 11, 1996].’’ EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–182 applicable (1) with re- spect to exports from the United States to Canada on Jan. 1, 1996, if Canada is a NAFTA country on that date and after such date for so long as Canada continues to be a NAFTA country and (2) with respect to exports from the United States to Mexico on Jan. 1, 2001, if Mexico is a NAFTA country on that date and after such date for so long as Mexico continues to be a NAFTA country, see section 213(c) of Pub. L. 103–182, formerly set out as an Effective Date note under former section 3331 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–382, title III, § 485(a), Aug. 20, 1990, 104 Stat. 712, provided that: ‘‘Except as otherwise provided in this title, the amendments made by this title [amending this section and sections 1309, 1313, 1466, and 1553 of this title and enacting provisions set out as notes under sections 1309, 1466, and 1553 of this title], shall apply with respect to articles entered, or with- drawn from warehouse for consumption, on or after Oc- tober 1, 1990.’’ EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT Amendment by Pub. L. 100–449 effective on date the United States-Canada Free-Trade Agreement enters into force (Jan. 1, 1989), and to cease to have effect on date Agreement ceases to be in force, see section 501(a), (c) of Pub. L. 100–449, set out in a note under section 2112 of this title. Amendment by section 1783(f) of Pub. L. 100–418 appli- cable with respect to articles entered or withdrawn from warehouse for consumption, after Sept. 30, 1988, pursuant to section 1831(a) of Pub. L. 100–418. EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–573, title II, § 231(a)(3), Oct. 30, 1984, 98 Stat. 2990, provided that: ‘‘The amendments made by para- graph (2) [amending this section] shall take effect on the fifteenth day after the date of the enactment of this Act [Oct. 30, 1984].’’ EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–271 effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after Oct. 1, 1970, and such other ar- ticles entered or withdrawn from warehouse for con- sumption prior to such date, or with respect to which a protest has not been disallowed in whole or in part before Oct. 1, 1970, see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- abilities of the United States Customs Service of the Page 37 TITLE 19—CUSTOMS DUTIES § 81i Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Se- curity, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended gen- erally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6. FLOOR STOCKS TAX TREATMENT OF ARTICLES IN FOREIGN TRADE ZONES Notwithstanding this chapter, articles located in a foreign trade zone on the effective date of increases in tax under specific amendments by Pub. L. 101–508 sub- ject to floor stocks taxes under certain circumstances, see section 11218 of Pub. L. 101–508, set out as a note under section 5001 of Title 26, Internal Revenue Code. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. Executive Documents TRANSFER OF FUNCTIONS All offices of collector of customs, comptroller of cus- toms, surveyor of customs, and appraiser of merchan- dise in Bureau of Customs of Department of the Treas- ury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than December 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out as a note under section 1 of this title. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5, Government Organization and Employees. § 81d. Customs officers and guards The Secretary of the Treasury shall assign to the zone the necessary customs officers and guards to protect the revenue and to provide for the admission of foreign merchandise into cus- toms territory. (June 18, 1934, ch. 590, § 4, 48 Stat. 1000.) Executive Documents TRANSFER OF FUNCTIONS Functions of all officers of Department of the Treas- ury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and em- ployees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appen- dix to Title 5, Government Organization and Employ- ees. § 81e. Vessels entering or leaving zone; coastwise trade Vessels entering or leaving a zone shall be sub- ject to the operation of all the laws of the United States, except as otherwise provided in this chapter, and vessels leaving a zone and ar- riving in customs territory of the United States shall be subject to such regulations to protect the revenue as may be prescribed by the Sec- retary of the Treasury. Nothing in this chapter shall be construed in any manner so as to permit vessels under foreign flags to carry goods or merchandise shipped from one foreign trade zone to another zone or port in the protected coast- wise trade of the United States. (June 18, 1934, ch. 590, § 5, 48 Stat. 1000.) § 81f. Application for establishment and expan- sion of zone (a) Application for establishment; requirements Each application shall state in detail— (1) The location and qualifications of the area in which it is proposed to establish a zone, showing (A) the land and water or land or water area or land area alone if the applica- tion is for its establishment in or adjacent to an interior port; (B) the means of segregation from customs territory; (C) the fitness of the area for a zone; and (D) the possibilities of ex- pansion of the zone area; (2) The facilities and appurtenances which it is proposed to provide and the preliminary plans and estimate of the cost thereof, and the existing facilities and appurtenances which it is proposed to utilize; (3) The time within which the applicant pro- poses to commence and complete the construc- tion of the zone and facilities and appur- tenances; (4) The methods proposed to finance the un- dertaking; (5) Such other information as the Board may require. (b) Amendment of application; expansion of zone The Board may upon its own initiative or upon request permit the amendment of the applica- tion. Any expansion of the area of an established zone shall be made and approved in the same manner as an original application. (June 18, 1934, ch. 590, § 6, 48 Stat. 1000.) § 81g. Granting of application If the Board finds that the proposed plans and location are suitable for the accomplishment of the purpose of a foreign trade zone under this chapter, and that the facilities and appur- tenances which it is proposed to provide are suf- ficient it shall make the grant. (June 18, 1934, ch. 590, § 7, 48 Stat. 1000.) § 81h. Rules and regulations The Board shall prescribe such rules and regu- lations not inconsistent with the provisions of this chapter or the rules and regulations of the Secretary of the Treasury made hereunder and as may be necessary to carry out this chapter. (June 18, 1934, ch. 590, § 8, 48 Stat. 1000.) § 81i. Cooperation of Board with other agencies The Board shall cooperate with the State, sub- division, and municipality in which the zone is