---
kind: "section"
citation: "19 U.S.C. § 81b"
title: "19"
title_heading: "Customs Duties"
number: "81b"
heading: "Establishment of zones"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/19/81b"
units:
  - "Chapter 1A — Foreign Trade Zones"
---

# §81b. Establishment of zones

- (a) **Board authorization to grant zones—** The [Board](/usc/19/81a.md?p=b) 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](/usc/19/81a.md?p=d) the privilege of establishing, operating, and maintaining foreign-trade [zones](/usc/19/81a.md?p=i) in or adjacent to ports of [entry](/usc/19/1677.md?p=23) under the jurisdiction of the [United States](/usc/19/1683.md?p=9).
- (b) **Number of zones per port of entry—** Each port of [entry](/usc/19/1677.md?p=23) shall be entitled to at least one [zone](/usc/19/81a.md?p=i), but when a port of [entry](/usc/19/1677.md?p=23) is located within the confines of more than one [State](/usc/19/81a.md?p=c) such port of [entry](/usc/19/1677.md?p=23) shall be entitled to a [zone](/usc/19/81a.md?p=i) in each of such [States](/usc/19/81a.md?p=c), and when two cities separated by water are embraced in one port of [entry](/usc/19/1677.md?p=23), a [zone](/usc/19/81a.md?p=i) may be authorized in each of said cities or in territory adjacent thereto. [Zones](/usc/19/81a.md?p=i) in addition to those to which a port of [entry](/usc/19/1677.md?p=23) is entitled shall be authorized only if the [Board](/usc/19/81a.md?p=b) finds that existing or authorized [zones](/usc/19/81a.md?p=i) will not adequately serve the convenience of commerce.
- (c) **Preference to public corporations—** In granting applications preference shall be given to [public corporations](/usc/19/81a.md?p=e).
- (d) **Ownership of harbor facilities by State—** In case of any [State](/usc/19/81a.md?p=c) in which harbor facilities of any port of [entry](/usc/19/1677.md?p=23) are owned and controlled by the [State](/usc/19/81a.md?p=c) and in which [State](/usc/19/81a.md?p=c) harbor facilities of any other port of [entry](/usc/19/1677.md?p=23) are owned and controlled by a municipality, the [Board](/usc/19/81a.md?p=b) shall not grant an application by any [public corporation](/usc/19/81a.md?p=e) for the establishment of any [zone](/usc/19/81a.md?p=i) in such [State](/usc/19/81a.md?p=c), unless such application has been authorized by an Act of the legislature of such [State](/usc/19/81a.md?p=c) (enacted after June 18, 1934).

## Source credit

(June 18, 1934, ch. 590, § 2, 48 Stat. 999.)