Reining in the Foreign Trade Zones Board: Making Foreign Trade Zone Decisions Reflect the Legislative Intent of the Foreign Trade Zones Act of 1934

Kanellis, William G. | January 1, 1995

The Foreign Trade Zone is an area inside United States territory which, for customs purposes, is considered outside of United States Customs territory. Various monetary and administrative benefits accrue to those who are allowed to operate within a foreign trade zone. Foreign Trade Zones were created in 1934 by the Foreign Trade Zones Act’ to improve the domestic economy and stimulate foreign commerce. The Foreign Trade Zones Act also created the Foreign Trade Zones Board. The Board is charged with the responsibility of setting up regulations surrounding Foreign Trade Zone creation and use. The relevance and prevalence of Foreign Trade Zones has grown dramatically in the last twenty years. This comment addresses criticisms that the Foreign Trade Zones Board has inadequately adhered to the legislative intent of the Foreign Trade Zones Act of 1934.