When the FTZ Board regulations (15 CFR Part 400) were revised in 2012, activities previously referred to as "manufacturing" or "processing" essentially were merged under one definition termed "production". For FTZ operators and users, it is critical that the definition of production is fully understood so that the regulations and requirements pertaining to production can be complied with on an ongoing basis.

In-bond is an integral part of zone operations, facilitating the movement of goods without the payment of duty to the zone from the port, between zones, extending zone benefits to zone exports, and helping to create duty savings both, up and down the supply chain. Chances are if you are involved in zone operations, you have had a close encounter with the in-bond program.