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Application & Activation as a Manufacturing Operation in the General-Purpose Zone or a Subzone
- The first step is getting approval from the US Foreign-Trades Zones Board by submission of an Application (can take 4-6 months to obtain approval). Guidelines and information on the different type of applications can be found on the FTZ Board website, http://enforcement.trade.gov/ftzpage/info/toolbox.html
- In order to get the application process going the Grantee must be involved, a prospective business should contact the FTZ Coordinator for assistance:
501 George Perry, suite i
El Paso, TX 79925
- The second step is Activation which is a relatively straightforward process that requires approval from the Grantee and US Customs. It consists of meeting the following requirements (this process can take 1-3 months but can be initiated once an application to the FTZ Board is filed):
- Execution of an Operator Agreement between the FTZ applicant and the City of El Paso acting in capacity as Federal Grantee for Foreign Trade Zone 68. The Operator Agreement clearly specifies the obligations of each party as they relate to FTZ operation.
- Preparation of an Inventory and Procedures Manual for all operations within the proposed FTZ designated site. The Inventory and Procedures Manual must be submitted to U.S. Customs and Border Protection (C.B.P.) for review and approval prior to commencement of FTZ operations. Because the Inventory and Procedures Manual is critical to the successful operation of your FTZ business, it is recommended that you retain a professional with FTZ experience to prepare the manual.
- A background investigation of all employees and company officers engaged in the operation of the FTZ-related portions of the site and/or business. This background investigation is handled through U.S. Customs & Border Protection and can take several months to complete. Note, the background investigations do not delay the activation process.
- Purchase of general liability & automobile insurance in the amount of $500,000 for bodily injury, and $100,000 for property damage. The City of El Paso operating as Grantee of FTZ 68 must be included on the policy as 'additionally insured.'
- Establishment of a CBP 301 bond in an amount determined by US Customs & Border Protection. This bond amount is based on the value of equipment and material that will transit through the FTZ.
- Manufacturing Business Incentive Document