Title 19, Customs DutiesRelease 119-110

§81b Establishment of Zones

Title 19 › CHAPTER 1A — FOREIGN TRADE ZONES › § 81b

Last updated Sep 22, 2026|Official source

Summary

The Board can let corporations set up and run foreign‑trade zones at or next to U.S. ports of entry if they apply and follow the chapter’s rules. Each port must be allowed at least one zone. If a port spans more than one State, each State can have a zone. If a single port covers two cities separated by water, each city can have a zone or nearby land can be used. Extra zones are allowed only if the Board finds existing zones do not meet business needs. When choosing applicants, the Board should give preference to public corporations (for example, government-owned entities). If a State owns the harbor at one port while a city owns another in that State, the Board cannot approve a public corporation’s application for a zone there unless the State legislature passed a law allowing it after June 18, 1934.

Full Legal Text

Title 19, §81b

Customs Duties, Source: USLM XML via OLRC

(a)Board authorization to grant zones

The Board is authorized, subject to the conditions and restrictions of this chapter and of the rules and regulations made thereunder, upon application as hereinafter provided, to grant to corporations the privilege of establishing, operating, and maintaining foreign-trade zones in or adjacent to ports of entry under the jurisdiction of the United States.

(b)Number of zones per port of entry

Each port of entry shall be entitled to at least one zone, but when a port of entry is located within the confines of more than one State such port of entry shall be entitled to a zone in each of such States, and when two cities separated by water are embraced in one port of entry, a zone may be authorized in each of said cities or in 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 existing 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 establishment 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).

Reference

Citations & Metadata

Citation

19 U.S.C. § 81b

Title 19, Customs Duties

Last Updated

Sep 22, 2026

Release point: 119-110