15 CFR § 400.16 - Exemption from state and local taxation of tangible personal property.

---
identifier: "/us/cfr/t15/s400.16"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "15 CFR § 400.16 - Exemption from state and local  taxation of tangible personal property."
title_number: 15
title_name: "Commerce and Foreign Trade"
section_number: "400.16"
section_name: "Exemption from state and local  taxation of tangible personal property."
chapter_name: "FOREIGN-TRADE ZONES BOARD, DEPARTMENT OF COMMERCE"
part_number: "400"
part_name: "REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Foreign-Trade Zones Act of June 18, 1934, as amended (Pub. L. 73-397, 48 Stat. 998-1003 (19 U.S.C. 81a-81u))."
regulatory_source: "77 FR 12139, Feb. 28, 2012, unless otherwise noted."
cfr_part: "400"
---


# 400.16 Exemption from state and local  taxation of tangible personal property.

Foreign merchandise (tangible personal property) imported from outside the United States and held in the activated area of a zone for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing, or processing, and tangible personal property produced in the United States and held in the activated area of a zone for exportation, either in its original form or as altered by any of the processes set out in this section, shall be exempt from state and local *ad valorem* taxation.

[89 FR 8528, Feb. 8, 2024]