Application for Reorganization/Expansion of Existing FTZ
Foreign-Trade Zone Application
06250139 ExpofGPZ1 FY11 (2)
Foreign-Trade Zone Reorg/Expansion of General-Purpose Zone Application
OMB: 0625-0139
OMB
Control No. 0625-0139
Rorganizaition/Expansion of General-Purpose Zone Application Instruction Sheet (1) |
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No
zone, subzone, or zone expansion may be granted unless a
completed application has been received (19 U.S.C. 81a-81u; 15
CFR Part 400).
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ASF FORMAT
INSTRUCTIONS SPECIFIC TO THE ALTERNATIVE SITE FRAMEWORK
Introduction:
The standard format for an application to reorganize an existing FTZ under the Alternative Site Framework (ASF) includes several relatively straightforward steps. It has been designed to minimize the burden on a grantee (particularly for new documentation). Because justification for existing FTZ sites was provided in a prior application(s), you generally will not be asked to rejustify existing sites.
The ASF application format is comprised of three parts:
Part One is all you will need to complete if the proposed reorganization of your FTZ only involves existing sites -- with no proposed changes to boundaries -- for which you will now be requesting Magnet designation (see definitions below).
Part Two is needed only if you propose Magnet designation for sites that are new or that involve modifications to the boundaries of existing sites.
Part Three is used only if you propose Usage-Driven designation for one or more sites.
If you have questions on any aspect of the application process, do not hesitate to contact the FTZ Staff at (202) 482-2862.
Definition of Key ASF-related Terms:
“Service Area” is the geographic area (such as specific counties) where you intend to be able to propose future FTZ sites. If approved under the ASF, your zone could serve sites throughout the Service Area based on companies’ needs for FTZ designation.
“Magnet” sites are sites intended to attract multiple potential FTZ operators/users.
“Usage-Driven” sites are designated to meet a specific operator/user’s present need for FTZ designation (rather than to attract potential future operators/users). A Usage-Driven site is tied to the specific operator/user for which it was designated and could not be used by any other entity. However, a site vacated by one operator/user could easily be designated as a Usage-Driven site for another operator/user through an additional simple minor boundary modification (MBM) action.
“Activation Limit” is a cap on the amount of space that can be in CBP “activated” status simultaneously. The FTZ Board’s practice involves a 2,000-acre activation limit for any FTZ grantee.
A “Sunset Limit” for a site means FTZ designation self-removes if there is no FTZ activity at the site before the sunset date. For Magnet sites, the default sunset period is 5 years (with variation possible based on circumstances, including possible permanent designation for one Magnet site). Usage-Driven sites have a three-year sunset period. FTZ activity at a site during the sunset period resets the sunset date for an additional 5 years (Magnet) or additional 3 years (Usage-Driven).
“Transitional Phase” is an initial period allowed for any grantee with more than six existing sites (the general goal for maximum number of Magnet sites under the ASF). The Transitional Phase enables a grantee to bring any number of existing FTZ sites into the ASF as Magnet sites without having to justify exceeding the ASF’s general goals. “Sunset” limits (with a five-year default period) would result in the automatic removal of sites which had not been used during the Transitional Phase.
Major Steps in Drafting Your ASF Application:
Step # 1: Define the geographic “Service Area” your zone will serve.
The most straightforward approach to a Service Area for many grantees would be to name the counties in which they intend to be able to propose FTZ sites. Once approved under the ASF, your zone could then serve sites throughout the Service Area based on operator/user needs for FTZ designation. Any proposed Service Area must be consistent with the state enabling legislation and the grantee organization’s charter and comply with the "adjacency" requirement of the FTZ Board’s regulations – within 60 miles/90 minutes driving time from CBP Port of Entry boundaries. (Note that if there are other FTZs in your CBP Port of Entry, the FTZ Board’s evaluation of your proposal may involve questions of the “convenience of commerce” -- 19 U.S.C. 81b(b).)
Step # 2: Indicate specific FTZ sites to be served initially by your FTZ.
Magnet sites: At the time that you reorganize your FTZ under the ASF, you will detail any specific Magnet sites proposed for your zone. Although there is a general long-term goal for each zone of no more than six Magnet sites, a grantee can propose Magnet designation for more than six existing sites during an initial Transitional Phase. At the end of the Transitional Phase, a standard “sunset” test would remove sites which had not been used for FTZ activity.
Usage-Driven sites (optional at time of reorganization): If you have one or more specific companies ready to pursue the use of FTZ procedures, you can also request Usage-Driven designation(s) at the time of your reorganization. Otherwise, you will be able to use a simple minor boundary modification (MBM) mechanism to designate Usage-Driven sites at any point after approval of your ASF reorganization application.
ASF PART 1
APPLICATION LETTER (incorporating Executive Summary)
The core of the application is a letter from the grantee that summarizes the application and transmits the full application (this format with attachments) to the FTZ Board. The letter should summarize the authority being requested and how the proposed reorganization would serve trade-related needs. If you are proposing to add new sites, they should be discussed specifically in the letter including explaining how they would meet a demonstrated need for FTZ services. The letter must be currently dated and signed by an authorized officer of the grantee corporation (see Question 10 under "Legal Authority for the Application" below) and should bear the corporate seal.
[Your Application Letter will be attached as the cover letter to your application document.]
PROPOSED SERVICE AREA
To define the Service Area for your FTZ, name the counties/localities in which you propose to be able to request designation of FTZ sites in the future. Explain how the Service Area complies with the "adjacency" requirement of the FTZ Board’s regulations (within 60 miles or 90 minutes’ driving time from the limits of your CBP Port of Entry), state enabling legislation and the grantee organization’s charter. Separately, in an attachment called "Support from Local Jurisdictions," attach documentation of support from each county in your proposed Service Area (using the standard language provided in the relevant “Sample Service Area Concurrence Letter” on the FTZ Board web site). If your focus is less broad than a county-wide level, support may instead be documented from the appropriate sub-county jurisdiction(s). Alternatively, you may provide evidence that you have contacted the counties/jurisdictions in the proposed service area (using the standard language provided in the “Sample Service Area Notification letter” by attaching a signed copy of the letter along with evidence of transmittal.
Finally, if your CBP Port of Entry is served by more than one FTZ grantee, contact the FTZ Staff for additional guidance on addressing the issue in your application’s documentation.
[Answer to text portion of Question 2 goes here. The " Local Jurisdiction Letters" attachment will follow your answers to Part One of the application.]
GENERAL JUSTIFICATION FOR REORGANIZATION
Explain the need for the proposed reorganization of your FTZ under the ASF, including current and projected levels of international trade in the community. Describe the local economy's strengths and weaknesses, in general, including established and emerging industries and particular challenges. Indicate how reorganizing your FTZ under the ASF ties to local/state/regional economic development plans. Explain the anticipated economic impact, direct and indirect, of reorganizing your FTZ under the ASF (including the ability to sponsor Usage-Driven sites throughout your proposed Service Area).
[Answer to Question 3 goes here.]
INFORMATION ON EXISTING ZONE SITES
For all of your existing FTZ sites, please fill in the table immediately below (adding additional rows, as needed). Here is a description of the information to fill in about each site:
Site Number -- This is the number assigned by the FTZ Board and should be reflected in the FTZ Board’s documents to you. You can confirm this information by contacting the FTZ Staff.
Site Name and Address -- This is the name (for example, the Acme Industrial Park) and the street address (or similar indicator) that is the primary indication of the site’s physical location.
Acreage within Current Site Boundaries -- Indicate the number of acres within the current boundaries of the site. This figure should match the FTZ Board’s records regarding the site’s acreage.
Site Number |
Site Name and Address |
Acreage w/in Current Site Boundaries |
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INFORMATION ON NEW OR MODIFIED ZONE SITES (IF APPLICABLE)
You only need to fill in the table below if there are 1) new sites that you are proposing for your FTZ or 2) existing sites that you propose to modify in any way. All new or modified sites should be included in this table (whether they are proposed for Magnet or Usage-Driven designation). Add additional rows to the table, as needed. Here is a description of the information to fill in about each site:
Site Number -- For a modification to an existing site, this will be the number already assigned to the site by the FTZ Board (as reflected in the FTZ Board’s documents to you). For any new site, the proposed number will follow the instructions in the “How to Prepare Your Application” document.
Change to Site -- Fill in this field as follows:
- If the site being proposed will be entirely new, indicate “New.”
- If the site already exists in your zone and you are proposing to remove it, indicate “Remove.”
- If the site already exists in your zone and you propose to retain the site but with modified site boundaries, indicate “Modify.”
- If the site already exists in your zone and you are simply proposing to renumber it, indicate “Renumber” followed by the new number for the site (for example, “Renumber to Site 5”).
Site Name and Address -- This is the name (for example, the Acme Industrial Park) and the street address (or similar indicator) that is the primary indication of the site’s physical location. For an existing site that you are modifying or removing, if the name and address remain the same as listed in the table in Question 4 above, simply indicate “Same as Existing.”
Acreage within Proposed Site Boundaries -- Indicate the number of acres within the proposed (rather than existing) boundaries of the site.
Site Number |
Change to Site |
Site Name and Address |
Acreage w/in Proposed Site Boundaries |
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SUMMARY OF PROPOSED ZONE STRUCTURE
In the table below, list all general-purpose sites (both Magnet and Usage-Driven) that you are proposing for inclusion as part of your FTZ at this time. Add additional rows to the table, as needed. Here is a description of the basic information you will need to provide about each site:
Site Number -- This number associated with a site should match the information you provided in the tables for Questions 4 and 5 above.
Site Category – For sites you are retaining or proposing, indicate “Magnet” or “Usage-Driven” designation, as appropriate.
Acreage within Site Boundaries -- Indicate the number of acres within the boundaries of each site proposed as part of your future zone structure. For existing sites that are not being modified, this figure should match the acreage indicated for the site in the table for Question 4 above. For new or modified sites, this figure should match the acreage indicated for the site in the table for Question 5 above.
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Site
Number
Site
Category
Acreage within
Site Boundaries
Please explain the circumstances (including reference to the specific site number(s)) if you are proposing to remove or renumber any existing site(s):
[Answer to Question 7 goes here, if applicable.]
For any current and future sites of your zone, confirm that you commit to working with Customs and Border Protection (CBP), as appropriate, to meet current and future CBP automated-systems requirements (such as ACS or ACE) and to meet any CBP security requirements related to activation?
[Answer to Question 8 goes here.]
OTHER REQUESTS (OPTIONAL)
The following two questions relate to optional flexibility that is possible for some Magnet sites. You may put “N/A” in response to each of these questions unless you are requesting the specific flexibility they address (in which case you will need to provide detailed response(s)).
Provide responses regarding the following optional requests, if applicable:
There is a default sunset period of five years for each designated Magnet site in a zone reorganized under the ASF. The ASF allows for a grantee to request waiver of the sunset limit for one Magnet site. If you would like to request waiver of the sunset limit for one of your Magnet sites, indicate the site number and describe in detail why this site was chosen for permanent status. Key considerations would be the publicly owned nature of a site and public processes leading to the site’s selection.
If you believe that a sunset period of longer than five years is justified for one or more specific Magnet sites, provide separately for each such site a detailed description of the specific circumstances that you believe justify a sunset period of longer than five years for the site in question.
[Answer to Question 9 goes here, if applicable.]
LEGAL AUTHORITY FOR THE APPLICATION
In an attachment called "Legal Authority for Application," submit:
a. A certified copy of the state enabling legislation regarding FTZs. (Consult the separate application-instructions document for an explanation of options to meet the regulatory requirement for a “certified” copy.)
AND
b. The sections of the grantee's charter (or organization papers) that are pertinent to FTZs. (For non-public grantees, consult the separate application-instructions document regarding the additional requirement specific to non-public grantees regarding demonstration of current legal standing.)
AND
c. A certified copy of a resolution authorizing the grantee official to sign the application letter. The resolution should indicate the nature of the application.
[The "Legal Authority for Application" attachment will follow your answers to Part One of the application.]
ASF PART 2
IMPORTANT: You will only need to complete this section if you are proposing Magnet designation for 1) a new site or 2) an existing site for which you are proposing to modify the site’s boundaries.
Different portions of Part Two will need to be completed depending on the situation:
New Site: For a new site (that is, a site that has not already been designated for your zone by the FTZ Board), you will need to answer all questions in Part Two.
Reduce Existing Site Boundary(ies): For an existing site that your are proposing to modify in a way that simply reduces one or more of the site’s existing boundaries, you will only need to answer Questions M1 through M4 plus provide an updated site plan (survey/schematic) as detailed in Question M15 below.
Expand Existing Site Boundary(ies): For an existing site that you are proposing to modify in a way that would expand any of the site’s existing boundaries, you will need to answer all questions in Part Two.
GENERAL JUSTIFICATION FOR NEW OR EXPANDED
SITES PROPOSED FOR “MAGNET” DESIGNATION
For new sites or any expansion of a boundary of an existing site, you will provide both a general justification below and then site-specific information/documentation for each affected site in separate attachments.
11. Discuss in detail the need for new or expanded sites to provide FTZ services to the community, including specific expressions of interest from proposed zone users. Why is your zone unable to meet businesses' needs for FTZ services even though your zone has existing Magnet FTZ sites and the ASF enables designation of Usage-Driven sites throughout the Service Area?
(If you are proposing new Magnet sites that would result in exceeding the ASF’s goal of six or fewer Magnet sites per grantee, also explain why your zone cannot otherwise serve businesses’ needs for FTZ services. That explanation should address why six Magnet sites would be inadequate to meet businesses’ needs, particularly given the ready availability of Usage-Driven designation for any company ready to use FTZ procedures throughout your Service Area.)
[Answer to Question 11 goes here.]
12. Describe in detail the grantee's process for selecting each new site (or expansion of an existing site) for which Magnet designation is proposed. Discuss the criteria applied in that process and how those criteria relate to the local economic development plans (Question 3 in Part One of the application format had asked for detail on those plans). Indicate the public entities involved in the site-selection process, and their meetings and documents related to the site-selection process.
[Answer to Question 12 goes here.]
General Map(s):
13. In a "General Map(s)" attachment, provide one or more maps showing 1) the modified/new sites in a regional context and 2) the modified/new sites in relation to your existing FTZ sites. The original application may contain full-sized maps, all copies must contain legible, letter-sized (8 1/2" X 11") reductions.
[Attach the map(s) requested above in a “General Maps” attachment.]
SITE-SPECIFIC INFORMATION FOR NEW OR EXPANDED “MAGNET” SITES
This section should be filled out separately for each new site and each site for which you propose expanded boundary(ies). Attach any documents needed for Questions M14 through M16 (and M17, if applicable) directly behind the copy of this section for each site.
M1. Indicate the site's distinct identifying number: _________. This number should tie to your site tables in Part One of the application. Be sure that the site’s identifying number complies with the instructions provided in the separate “How to Prepare Your Application” document.
M2. List the site's address, including the jurisdiction in which the site falls (town, city, county):
M3. List the total acreage within the proposed site's boundaries: __________.
M4. If applicable, describe how the site relates to any existing site (permanent or temporary) and explain the circumstances.
M5. Briefly describe how this site (or expanded portion) met the grantee's site selection criteria (which you described in your answer to Question # 12 in Part Two of the application format).
M6. Explain in detail why this site (or expanded portion) is needed to provide FTZ services to your community:
M7. Indicate the type of site (port, industrial park, warehouse complex) and its current zoning.
M8. For the proposed site (or expanded portion), describe the existing and planned buildings (including functions and square footage), existing and planned activities, whether the site is master planned, stage of development/timetable for completion of plans, and status of any applications for construction approvals:
M9. List the companies that currently occupy the site (or expanded portion):
M10. Will space at the site (or expanded portion) be available to multiple businesses at the site under public utility principles (under uniform rates and conditions)? Explain.
M11. Briefly describe the transportation infrastructure serving the site, including its ties to the broader regional/national transportation system:
M12. Confirm that FTZ designation or the use of FTZ procedures is not a requirement or a precondition for future activity or construction at the site.
M13. Who owns the site (or expanded portion)? (If the grantee or proposed operator does not own it, provide a "Site Ownership" attachment pursuant to the guidance in the separate application-instructions document.)
Attach each of the documents listed below (items M14 through M16, plus M17 where applicable).
M14. A clear copy of the appropriate legal description for the site (or expanded portion) with label tying the description to the site number. Also, state if the legal description covers a larger area than the proposed site.
M15. A clear and detailed site plan (survey/schematic) showing existing and planned structures. The site boundaries must be outlined clearly in red. Note that if streets or similar landmarks are not legible on the site plan, you will also need to provide a detailed street map with the proposed site's boundaries in red. Any map should be no larger than letter-sized (8 1/2” x 11”) and clearly labeled, with legends provided for any markings.
M16. Signed letters of interest on letterhead from firms considered prime prospects for use of this particular site (or expanded portion).
M17. If your state (such as TX, KY, AZ) has one or more taxes for which collections will be affected by the proposed FTZ designation of the new site:
- attach an explanation of the specific local taxes that will be affected
AND
- attach correspondence from the affected parties (such as a local school board) indicating their concurrence (or non-objection) regarding the proposed FTZ designation.
ASF PART 3
IMPORTANT: Under the ASF, you (the grantee) will be able to request designation of Usage-Driven sites throughout your approved Service Area at any time. You will only need to complete this section as part of your reorganization application if you are proposing Usage-Driven designation for specific sites at this time. (Such sites could either be sites that have not already been designated by the FTZ Board or sites already designated for your FTZ that have only been used over time by one operator/user and that you therefore believe are appropriate -- either wholly or only in part -- for Usage-Driven designation.)
Different portions of Part Three will need to be completed depending on the circumstances of a site for which you are proposing Usage-Driven designation:
Maintain Existing Site Boundaries: For an existing site that you are proposing for Usage-Driven designation but which does not need its boundaries modified (for example, a warehouse building already occupied by a third-party logistics provider), you will only need to answer Questions U1 through U6 below.
Reduce Existing Site Boundary(ies): For an existing site that you are proposing to modify in a way that simply reduces one or more of the site’s existing boundaries, you will only need to answer Questions U1 through U6 plus provide the site plan requested in Question U10 below.
Expand Existing Site Boundary(ies): For an existing site that you are proposing to modify in a way that would expand any of the site’s existing boundaries, you will need to answer all questions in Part Three.
New Site: For a new site, you will need to answer all questions in Part Three.
SITE-SPECIFIC INFORMATION FOR USAGE-DRIVEN SITES
This section should be filled out separately for each proposed Usage-Driven site in a manner consistent with the instructions above. Attach any documents needed for Items U9 and U10 (and U11, if applicable) directly behind the copy of this section for each site.
U1. Indicate the distinct identifying number to apply to the site: _________. This number should tie to your site tables in Part One of the application. Be sure that the site’s identifying number complies with the instructions provided in the separate “How to Prepare Your Application” document.
U2. List the site's address, including the jurisdiction in which the site falls (town, city, county), and explain how the site is within the grantee’s Service Area.
U3. List the site's proposed acreage __________ (which will also be the site’s activation limit).
U4. If applicable, describe how the site relates to any existing site (permanent or temporary) and explain the circumstances.
U5. Indicate the company for which the site will be designated and the company’s planned activities.
U6. Confirm that FTZ designation or the use of FTZ procedures is not a requirement or a precondition for future activity or construction at the site.
U7. Describe the type of site (for example, warehouse building within an industrial district), the site’s current zoning, existing and planned buildings and the status of any applications for construction approvals.
U8. Who owns the site? (If the grantee or proposed operator does not own it, provide a "Site Ownership" attachment pursuant to the guidance in the separate application-instructions document.)
Attach the documents listed below (items U9 and U10, plus U11 where applicable). Note that if the legal description for a site encompasses a larger area than that site, your maps for the site must show sufficient detail to enable the FTZ Board and your local CBP port officials to understand the exact boundaries of the proposed site.
U9. A clear copy of the appropriate legal description (with label tying the description to the site number). Also, state if the legal description covers a larger area than the proposed site.
U10. A clear and detailed site plan (survey/schematic) showing existing and planned structures. The site boundaries must be outlined clearly in red. Note that if streets or similar landmarks are not legible on the site plan, you will also need to provide a detailed street map with the proposed site's boundaries in red. Any map should be no larger than letter-sized (8 1/2” x 11”) and clearly labeled, with legends provided for any markings.
U11. If your state (such as TX, KY, AZ) has one or more taxes for which collections will be affected by the proposed FTZ designation of the new site:
- attach an explanation of the specific local taxes that will be affected
AND
- attach correspondence from the affected parties (such as a local school board) indicating their concurrence (or non-objection) regarding the proposed FTZ designation.
| File Type | application/msword |
| Author | Christopher Kemp |
| Last Modified By | Christopher Kemp |
| File Modified | 2011-09-14 |
| File Created | 2011-09-14 |
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