What is meant by the terms “manufacturing” and “manipulation”?
The Foreign Trade Zones Board has established definitions for the types of activity that can be done within a Zone. These definitions are generally based on determining the level and type of change that is being done to a good or product. According to the FTZ Board and manual, manipulation and manufacturing are defined as follows: ManipulationProcessing wherein merchandise is packed, unpacked, repacked, cleaned, sorted, graded or otherwise changed in condition. ManufacturingAny process that results in a change in Customs classification of the merchandise. With manufacturing, because of the Customs classification change, prior clearance from the Board is necessary. There are some basic differences to note. In the case of manufacturing, the merchandise itself is changed, but in manipulation, the condition of the merchandise is changed. For some, this may be a point of disagreement. If in doubt, feel free to contact the local FTZ office who can help determine if your business activity is
