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GUIDELINES FOR MAJOR EXPANSION/MODIFICATION APPLICATIONS1

LETTER OF TRANSMITTAL - currently dated and signed by an authorized officer of the FTZ grantee corporation.

EXECUTIVE SUMMARY shall briefly describe:

  • Type of zone authority being requested
  • Proposed zone site and facilities
  • Reason for the change

EXHIBIT 1 - LEGAL AUTHORITY TO APPLY

  • Certified copy of state enabling legislation regarding FTZs, or reference to recent zone application that contains such information, giving legal citation of the legislation and indicating there has been no change since the referenced application
  • Copy of pertinent sections of applicant's charter or organization papers with evidence of current standing of non-public corporations
  • Certified copy of resolution authorizing the grantee official to sign the application

EXHIBIT 2 - SITE DESCRIPTION

  • Description of current zone project with list of existing zone sites
  • List of proposed site(s)
  • Detailed description of each proposed site, including name of site, size, address, location, jurisdiction (town, city, county), zoning, type (port, industrial park, warehouse complex), legal description, existing structures
  • Description of facilities and services to be provided by proposed sites
  • Qualifications of proposed sites
  • Current activities at proposed sites
  • If vacant, provide time frame for development
  • Transportation services and facilities available at proposed sites
  • Discussion as to whether the proposed site(s) meet the U.S. Customs port of entry adjacency requirement 2

EXHIBIT 3 - OPERATION AND FINANCING

  • Site ownership and applicant's right to use (evidence that each site owner will make site available for zone use under contractual oversight of grantee)
  • Describe operational plan
  • Indication that physical security plan meets U.S. Customs & Border Protection requirements
  • Agreement to comply with U.S. Customs & Border Protection automated systems
  • Plans for financing capital and operating costs
  • Estimated time schedule for construction and activation

EXHIBIT 4 - ECONOMIC JUSTIFICATION

  • Status of and current information on each existing zone site:
    • zone site designation, name, location and type
    • description of current zone activity at site
    • percent of approved zone space that is currently being used for zone activity
    • number of users at the site
    • if not active under zone procedures, indicate how long site has been FTZ inactive and provide an indication of the need to keep FTZ status at the site
  • Justification for proposed site(s)
    This is a key part of an expansion application. The FTZ Board regulations (15 CFR Sec. 400.24(d)(4)(iv), (v), and (vi)) require a justification for each FTZ site within a zone project, and, for expansion applications, the justification must also consider existing zone sites. The justification includes the following general and site-specific information:
    • General:
      • the overall reason for the proposed changes
      • description of grantee’s site selection process and criteria and the extent to which these relate to the public interest of the community
      • information on the area’s international trade environment, including statistical information on area trade activity and the demand for trade services
      • role of the proposed expanded zone in area economic development plans
    • Specific – for each proposed site provide:
      • explanation as to how each site met the site selection criteria
      • a description of proposed zone activity at the site
      • specific evidence of need for zone procedures at the site
      • evidence of specific proposed zone users (include surveys, letters of interest if available)
      • explanation as to why proposed uses could not be accommodated at existing zone sites
      • description of types of services, facilities, and parcels available and how they are different from those at existing zone sites
      • explanation that proposed sites will be available for use that is general-purpose in nature and that space will be available to businesses at the site under public utility principles (note that sites that are primarily for the use of a single company for its own products are subzones)
      • description as to how zone services will be provided and marketed
  • Environmental impact (each site)
    • status of local zoning and land use permits/issues
    • explanation as to whether FTZ status is a requirement or pre-condition for construction or activity at the site(s) or will significantly change the physical aspects of the site or facilities.
    • statement that applicant is aware that FTZ status would not exempt any site or party (e.g., operators or users) from any federal, state or local environmental requirements
  • Manufacturing
    • Statement as to whether any specific manufacturing authority is being requested in the application
    • If manufacturing authority is being requested:
      • separate discussion of proposed manufacturing operations
      • detailed information on proposed activity is required as indicated in subzone/manufacturing guidelines

EXHIBIT 5 - MAPS

  • Local/state map indicating location of zone site(s)
  • Detailed street map
  • Detailed drawing of zone site showing zone boundaries in red with dimensions and metes and bounds

1These guidelines are for applications that include new FTZ space or sites, including reorganization applications which both add and remove space/sites.
-See 15 CFR Part 400, Sections 400.24, 400.25, 400.26 and 400.31 of the Board's regulations for the basic application requirements
-See also, Section 400.29 regarding application filing fees
-Copies: 8 copies plus original

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2Adjacency Requirement. The FTZ Act and regulations require that zone sites be within or adjacent to a U.S. Customs port of entry, as listed and defined in part 101 of the Customs Service regulations (19 CFR 101.3).
The adjacency requirement can be satisfied if one of the following factors is met:

  1. The zone or subzone site is within the limits of a Customs port of entry (19 CFR 101.3).
  2. The zone or subzone site is within 60 statute miles of the outer limits of a Customs port of entry.
  3. The zone or subzone site is within 90 minutes' driving time from the outer limits of a Customs port of entry as verified by the Customs Service Port Director.

Return to Exhibit 2