Application for ASF Reorg/exp

OMB Control No. 0625-0139

Expiration Date: 04/30/2025

Application to Reorganize/Expand an Existing Zone under the Alternative Site Framework (ASF)

Instruction Sheet

A Federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with an information collection subject to the requirements of the Paperwork Reduction Act of 1995 unless the information collection has a currently valid OMB Control Number. The approved OMB Control Number for this information collection is 0625-0139. Without this approval, we could not conduct this information collection. Public reporting for this information collection is estimated to be approximately 99 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the information collection. All responses to this information collection are required to obtain benefits. Send comments regarding this burden estimate or any other aspect of this information collection, including suggestions for reducing this burden, to the International Trade Administration, Attn: FTZ Board Executive Secretary, U. S. Department of Commerce, 14^th and Constitution Avenue NW, Room 21013, Washington, DC 20230 or [email protected].

No zone, subzone, zone expansion/reorganization/modification, or production authority may be approved unless a completed application/notification/request has been received (19 U.S.C. 81a-81u; 15 CFR Part 400). The Foreign-Trade Zones Board has no authority to finance zone projects. Its approval is in the form of a grant of authority (license) for operating a facility under foreign-trade zone procedures. The basic requirements for foreign-trade zone applications are found in the regulations of the Foreign-Trade Zones Board (15 CFR Part 400), including Sections 400.21 through 400.25. Application formats are available on the FTZ Board web site: http://www.trade.gov/ftz.

Corporations submitting applications must be qualified to apply under the laws of the state in which the zone is to be located. Applicants may submit drafts of their applications to the FTZ Staff, which can provide comments and technical assistance in interpreting the Board's regulations.

Applicants should note that conduct of their proposed activity under FTZ procedures would result in an additional, ongoing information-collection burden associated with the Annual Report from Foreign-Trade Zones (OMB Control No. 0625-0109).

FTZ Staff

March 2022

Foreign-Trade Zones Board

U.S. Department of Commerce

1401 Constitution Avenue, N.W., Room 21015

Washington, D.C. 20230

(202) 482-2862

APPLICATION TO REORGANIZATION/EXPAND AN EXISTING

ZONE UNDER THE ALTERNATIVE SITE FRAMEWORK (ASF)

GENERAL INFORMATION/INSTRUCTIONS

About the Alternative Site Framework: Under the Alternative Site Framework, FTZs are fundamentally based on a “service area.” The service area is generally defined as one or more jurisdictions (often counties) within which the grantee will be able to propose zone sites. Under the ASF, a zone can establish a limited number of multi-user sites across its service area. These “Magnet” sites are akin to sites under the traditional framework and are intended to attract users to a single fixed location, generally in a business park or a port facility. In addition to Magnet sites, the ASF allows grantees to establish additional sites geared towards specific companies either as a “Subzone” or a “Usage-Driven” site. These sites enable grantees to locate zone designation where companies’ needs actually arise. By bringing zone designation to firms, Subzones/Usage-Driven sites help grantees respond to growth opportunities in the local economy and diminish the need to try to anticipate where future activity may occur. A Subzone (or Usage-Driven site) under the ASF can be added, removed, or modified using a quick and simple minor action rather than the longer and more complex reorganization/expansion or Subzone application process that is required under the Traditional Site Framework.

Under the ASF, any Magnet, Subzone or Usage-Driven site designated is subject to sunset time limits that automatically remove the FTZ designation if no FTZ activation/activity had occurred within a specified period. The ASF allows for a grantee to request (with justification) the exemption of one Magnet site from the “sunset” time limits that generally apply to sites under the ASF, as well as for a grantee to request (with justification) an initial sunset period of longer than five years for one or more magnet sites. The standard sunset limit for Magnet sites is five years; for Subzone and Usage-Driven sites, the sunset period is three years. The sunset mechanism helps to ensure that FTZ designation is retained only at locations that are actually being used for FTZ activity, and it is neutral and equitable for all affected parties. FTZ activity at a Magnet/Usage-Driven site or Subzone during the sunset period resets the sunset date for an additional five (5) years for Magnet sites or an additional three (3) years for Usage-Driven sites or Subzones.

“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.

Which Sections of the Application Format to Use: The application format consists of four parts with a series of questions to answer. Instructions below will help you to determine which parts are needed for your particular request. (For ease of use, each part of the format is provided within this single MS Word document.) Leave each question in place in the document (including its identifying number) and provide your response directly below each question in the applicable part(s).

The standard format for an application to reorganize an existing FTZ under the alternative site framework 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 re-justify existing sites. If you are requesting an expansion of the FTZ either existing sites or new sites (Magnet or Subzone/Usage-Driven), you will have to provide a justification for each modified or new site. The FTZ regulations place the burden of proof on the applicant.

The application format is comprised of four parts:

• Part One -- General Information Section. This section 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.

• Part Two -- Site-Specific Section for Subzones (or Usage-Driven Sites). This part is only used if you propose Subzone (or Usage-Driven) designation for one or more existing sites or new sites as part of your zone’s reorganization. Only a few of this section’s questions need to be answered for existing sites.

• Part Three -- General Justification for New or Expanded Magnet Sites. This part is only needed if you propose Magnet designation for sites that are new or that involve an expansion to the boundaries of existing sites. If sites are simply being modified to remove acreage, you will not have to complete this part but you will have to complete Part Four for those sites.

• Part Four -- Site-Specific Information for New/Expanded/Modified Magnet Sites. This part is only needed if you propose Magnet designation for sites that are new or that involve an expansion or modification to the boundaries of existing sites. This part will need to be completed separately for each new, expanded or modified site (with required attachments immediately following the completed Part Four for each site).

Confirm Your Existing Sites: All applicants should contact the FTZ Staff at an early stage in the process of drafting an application to confirm that the grantee’s records regarding existing FTZ sites match the FTZ Board’s records (including the descriptions of the individual sites).

Adjacency Requirement: The FTZ Act and Regulations require each zone site to be within or adjacent to a U.S. Customs and Border Protection (CBP) port of entry (as listed in part 101 of the CBP Regulations - 19 CFR 101.3). That requirement can be satisfied if the zone site is: 1) within the limits of a CBP port of entry; or, 2) within 60 statute miles or within 90 minutes' driving time from the outer limits of the boundaries of a CBP port of entry, as determined or concurred upon by CBP. The entirety of a proposed service area must meet the adjacency requirement.

Sites versus Parcels: A zone site (site) means a physical location of a zone or Subzone. A “site” is composed of one or more generally contiguous parcels of land organized and functioning as an integrated unit, such as all or part of a port facility, airport facility, or industrial park. If parcels do not share an identity, then they should be treated as separate sites.

Site Identification: Use new numbers for wholly new Magnet or Usage-Driven sites. For example, if your FTZ previously had (but no longer has) a Site 2, do not use number 2 for a new site – use the next number in the sequence of unused numbers. For each new Subzone, use identifying letters starting with “A” followed by “B” and so on. (Note: If your zone already has designated Subzones, use the next letter in the sequence of unused letters.)

Requests to Expand Existing ASF Service Areas: If your zone has already been reorganized under the ASF and you now are simply looking to expand your approved Service Area, you will only need to complete Questions 1, 2, 3, 4 and 11 in Part One of this application format.

Inclusion of Pre-Existing Subzones: Any Subzones of your zone that were approved prior to the ASF reorganization ordinarily do not need to be listed or included in any way in the ASF reorganization application. The exception would be where – due to specific circumstances – the grantee needs to make a pre-existing Subzone subject to the overall zone’s activation limit. Please contact the FTZ Staff if you need further guidance on this point.

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.

New Subzone/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 Subzone or 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 Subzones/Usage-Driven sites at any point after approval of your ASF reorganization application.

SUBMISSION OF APPLICATIONS

Pre-Docketing Submission. Applicants shall submit a complete copy of an application for pre-docketing review. The complete copy must include all required answers and documents, including the application letter and resolution. The application should be submitted via e-mail ([email protected]). Under the FTZ Board’s regulations, the ordinary timeframe for the FTZ Board’s staff to review the pre-docketing submission is 30 days. After that review, the staff will notify the applicant either to submit the final application or to correct deficiencies.

Final Submission. Submit the final application by email ([email protected]) (Adobe PDF format preferred; you may use MS Word format if you are unable to submit PDF). The application must include color maps and signed versions of all letters.

Filing Fees. The FTZ Regulations (§400.29(b)(3)) require a $1,600 filing fee for an “Expansion application.” (This only applies to applications that propose to extend FTZ designation to specific, identified space that does not currently have such designation. If any new or expanded sites or subzones are included in the application then this fee is required. If the zone is simply reorganizing under the ASF and no new or expanded sites or subzones are included, then the application is not subject to the fee.) The currently dated check should be made payable to "U.S. Department of Commerce ITA." The Federal Tax ID number is 91-2014781.

Timeframe for FTZ Board to process request. Under the FTZ Board’s regulations, the ordinary timeframe to process an application to reorganize or expand a zone is ten (10) months from the date of docketing. If the zone is simply reorganizing under the ASF (no designation of new FTZ space), the ordinary timeframe is shortened by 75 days.

When an application has been docketed, the FTZ staff will publish a notice in the Federal Register opening a public comment period. The applicant also must publish notice in a local newspaper describing the proposal.

If you have questions on any aspect of the application process, do not hesitate to contact the FTZ Staff at (202) 482-2862.

Alternative Site Framework

Application for Reorganization/Expansion of Existing FTZ

PART ONE: GENERAL INFORMATION

APPLICATION LETTER

1. 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, the proposed zone sites and facilities, and how the proposed reorganization/expansion would meet a demonstrated need for FTZ services. 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 should be dated within six (6) months prior to the submission of the application and signed by an authorized officer of the grantee corporation (see Question 11 under "Legal Authority for the Application" below).

PROPOSED SERVICE AREA

2. 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 outer limits of your CBP Port of Entry);

• the state enabling legislation relevant to FTZs; and,

• the relevant sections of the grantee’s charter or organization papers.

Separately, in an attachment called "Service Area Correspondence," please include documentation of support from each county in your proposed Service Area (using the standard language provided in the relevant “Sample Service Area Concurrence Letter”). 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 receipt. If your focus is less broad than a county-wide level, support may instead be documented from the appropriate sub-county jurisdiction(s). Also, if your proposed Service Area includes any partial jurisdiction(s), provide a map(s) clearly showing in red the line dividing the portions of the jurisdiction(s) inside and outside the Service Area. You may also provide an optional map of the proposed Service Area with proposed boundaries outlined in red.

3. If your zone was not the first FTZ established for your CBP port of entry (entitlement zone), explain why the existing zone(s) is not adequately serving the “convenience of commerce” (needs of potential users) for the proposed service area/proposed expansion sites. (You are welcome to contact the FTZ Staff for guidance on addressing this question.) Cite evidence to support all assertions.

GENERAL JUSTIFICATION FOR REORGANIZATION OR EXPANSION

4. Explain the need for the proposed reorganization or expansion 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 or expanding your FTZ under the ASF ties to local/state/regional economic development plans.

INFORMATION ON EXISTING ZONE SITES

5. Fill in the table immediately below (adding additional rows, as needed) for your existing sites, including any Subzones that are subject to your zone’s activation limit. Here is a description of the information to fill in about each site:

• Site Identification -- This is the site/Subzone 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.

• Basic Description of Site and Address -- This is the site 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.

• Sunset/Time Limit – Indicate whether or not the site currently has a sunset or time limit

Site Identification	Basic Description of Site and Address	Acreage within Current Site Boundaries	Current Sunset/ Time Limit (if applicable)

INFORMATION ON NEW OR MODIFIED ZONE SITES (IF APPLICABLE)

6. 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 Subzone 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 Identification -- 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 Magnet or Usage-Driven site, use new numbers for wholly new sites. For any new Subzone, use a new letter to indicate the proposed Subzone. (If your zone already has designated Subzones, use the next available letter.)

• 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”).

• Basic Description of Site 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 5 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 Identification	Change to Site	Basic Description of Site and Address	Acreage within Proposed Site Boundaries

SUMMARY OF PROPOSED ZONE STRUCTURE

7. In the table below, list all sites (both Magnet and Subzone/Usage-Driven) that you are proposing for inclusion as part of your FTZ under the ASF at this time. (Note that this list will not include any pre-existing Subzone of your zone, unless you have a specific reason to fold such a Subzone into the ASF. Contact the FTZ Staff for guidance on this point, as needed).

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 Identification -- This number or letter associated with a site should match the information you provided in the tables for Questions 5 and 6 above.

• Site Category -- For sites you are retaining or proposing, indicate “Magnet” or “Subzone” 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 5 above. For new or modified sites or Subzones, this figure should match the acreage indicated for the site in the table for Question 6 above.

Site Identification	Site Category	Acreage within Site Boundaries

8. Please explain the circumstances (including reference to the specific site number(s)) if you are proposing to remove or renumber any existing site(s):

9. For any current and future sites (including Subzones) of your zone, confirm that you commit to working with U.S. Customs and Border Protection (CBP), as appropriate, to meet current and future CBP automated-systems requirements (such as ACE) and to meet any CBP security requirements related to activation?

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)).

10. Provide responses regarding the following optional requests, if applicable:

1. 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 a possible exemption from the sunset limits for one Magnet site. If you would like to request an exemption from the sunset limits 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.

2. 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.

LEGAL AUTHORITY FOR THE APPLICATION

11. In an attachment called "Legal Authority for Application," provide the following documents:

1. a current copy of the state enabling legislation regarding FTZs.

2. a copy of the relevant sections of the grantee's charter or organization papers. For non-public grantees, also provide evidence of the organization’s current legal standing with the state. This can include a letter or documentation from an appropriate state official or from the state’s official website.

3. a certified copy of a resolution of the applicant’s governing body specific to the application authorizing the official signing the application letter. The resolution must be dated no more than six (6) months prior to the submission of the application. The resolution should indicate the nature of the application.

SAMPLE SERVICE AREA CONCURRENCE LETTER

IMPORTANT: The language in this letter is standard for any Service Area concurrence letter. However, some circumstances may create a need to include additional language specific to the situation. In particular, the grantee will need to examine whether:

1) any other grantee(s) has been approved for the same CBP port of entry; and,

2) a given county/jurisdiction proposed as part of the Service Area may also be "adjacent" to another CBP port of entry served by another grantee.

If you are certain that neither of those circumstances applies, simply use the language already provided in this letter. If you have any questions – including about whether either of the circumstances outlined above might apply to the Service Area you are considering – contact your FTZ Staff Regional Representative. Questions or uncertainty about the possible need for additional language in a support letter should be addressed before the grantee presents any letter to a local official for signature.

Finally, if the grantee wishes to customize the language of this letter for other reasons, the grantee should obtain approval in advance from the FTZ Board staff for the specific proposed modification(s).

[Use letterhead appropriate for the county official signing the letter]

Date

Grantee Official Name

Grantee Organization

Address

Dear _____:

[The following paragraph is standard for all Service Area letters:]

The purpose of this letter is to document the support of this county for inclusion within the Service Area of Foreign-Trade Zone (FTZ) [insert FTZ number]. We understand that this means that the grantee, [insert name of grantee organization], will be able to apply to the Foreign-Trade Zones Board for authority to serve sites located within this county based on businesses’ trade-related needs. We also note that the zone will be made available on a uniform basis to companies within this county, in a manner consistent with the legal requirement that each FTZ be operated as a public utility.

[The following paragraph must be included if the zone is in a state where FTZ designation of specific sites may have an impact on state/local tax collections (for example, ad valorem property taxes in Texas or real property taxes in Arizona):]

Regarding state or local taxes for which collections may be affected by FTZ designation of sites, this letter is not intended to provide a position on state or local tax issues for any site within this jurisdiction. At the time that any specific site is proposed for FTZ designation, parties potentially affected by the site’s proposed designation (such as a local school board) will need to provide their own correspondence indicating their views on the impact on tax collections related to the proposed designation.

[Signature of county official]

[Title of county official]

SAMPLE SERVICE AREA NOTIFICATION LETTER

[IMPORTANT: In the absence of letters from the appropriate jurisdictions within your proposed service area, provide as part of your ASF application copies of the original letters (using the standard language below) sent to the appropriate jurisdictions, as well as proof that those letters were received at the offices of those jurisdictions.

The language in this letter is standard for any Service Area notification letter. However, some circumstances may create a need to include additional language specific to the situation. In particular, the grantee will need to examine whether:

1) any other grantee(s) has been approved for the same CBP port of entry; and,

2) a given county/jurisdiction proposed as part of the Service Area may also be "adjacent" to another CBP port of entry served by another grantee.

If you are certain that neither of those circumstances applies, simply use the language already provided in this letter. If you have any questions – including about whether either of the circumstances outlined above might apply to the Service Area you are considering – contact your FTZ Staff Regional Representative. Questions or uncertainty about the possible need for additional language in a support letter should be addressed before the grantee sends any notification letter to a county or other jurisdiction.

Finally, if the grantee wishes to customize the language of this letter for other reasons, the grantee should obtain approval in advance from the FTZ Board staff for the specific proposed modification(s).]

This letter is intended to provide information to you pertaining to the [Name of grantee organization]’s application to the U.S. Foreign-Trade Zones (FTZ) Board for authority to use a new procedure (the “Alternative Site Framework”) to provide quick and simple access to FTZ service for companies in our region. Our organization is the grantee of FTZ [insert zone number] and currently sponsors a limited number of FTZ sites in our region. The authority we are requesting from the FTZ Board would enable us to quickly bring FTZ designation to any company within our proposed “service area.” Our proposed service area includes [name the county that the letter will be sent to] as well as [list of all other counties in proposed service area].

FTZ designation can provide companies with customs duty savings and logistical benefits that can help encourage them to establish or maintain operations in the U.S. As such, access to FTZ benefits can be an important tool in economic development efforts. If the FTZ Board approves our application, [Name of grantee organization] will be able to bring FTZ designation to companies anywhere in the proposed service area based on those companies’ trade-related needs. We also note that FTZ access will be made available on a uniform basis to companies across the service area, in a manner consistent with the legal requirement that each FTZ be operated as a public utility.

[The following paragraph must be included if the zone is in a state where FTZ designation of specific sites may have an impact on local tax collections (for example, ad valorem property taxes in Texas or real property taxes in Arizona):

Regarding any local taxes for which collections may be affected by FTZ designation of sites, FTZ [insert zone number]’s application to establish its “service area” under the Alternative Site Framework does not propose any specific new FTZ sites (and therefore can have no impact on tax collections). At the time that any specific new site is proposed for FTZ designation in the future, we will contact parties potentially affected by the site’s proposed designation (such as the county government) so that they can indicate their views on the impact on tax collections related to the proposed designation.]

If you have questions about the [Name of grantee organization]’s application to the FTZ Board, please contact [Name of grantee contact] at [Contact information]. If you have comments you would like the FTZ Board to consider regarding the proposed inclusion of [Name of county] in the proposed service area of FTZ [insert zone number], please provide your comments to the staff of the FTZ Board by [insert date, which must be at least 30 days after the letter is transmitted to the county official to which it is addressed]. The FTZ Board staff also welcomes any questions you may have – the staff can be reached at 202-482-2862 or [email protected].

Alternative Site Framework

Application for Reorganization/Expansion of Existing FTZ

PART TWO: SITE-SPECIFIC INFORMATION FOR

SUBZONES OR USAGE-DRIVEN SITES (if applicable)

IMPORTANT: Under the ASF, you (the grantee) will be able to request designation of Subzones (or 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 Subzone (or 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 Subzone or Usage-Driven designation.)

This section should be filled out separately for each proposed Subzone or Usage-Driven site in a manner consistent with the instructions below. Attach any documents needed for Items 8 and 9 (and Item 10, if applicable) directly behind the copy of this section for each site.

Different portions of Part Two will need to be completed depending on the circumstances of a site for which you are proposing Subzone or Usage-Driven designation:

• Maintain Existing Site Boundaries: For an existing site that you are proposing either Subzone or 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 1 through 5 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 1 through 5 plus provide the site map requested in Question 9 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.

• New Subzone/Usage-Driven Site: For a new Subzone or Usage-Driven site, you will need to answer all questions in Part Two.

QUESTIONS

1. Indicate the site identification: _________. This letter/number should tie to your site tables in Questions 6 and 7 in Part One of the application.

2. 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.

3. List the site's proposed acreage __________.

4. If applicable, describe how the site relates to any existing site (permanent or temporary) and explain the circumstances.

5. Indicate the company for which the site will be designated and the company’s planned activities (for example, distribution or production activities and the types of products involved).

6. 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.

7. Describe the type of site (for example, warehouse building), the current zoning, and existing and planned buildings (including square footage). (Note: Sites (or areas within a site) with inappropriate zoning – such as agricultural, retail, or residential – are not eligible for FTZ status and should not be proposed in any application.)

8. List the owner(s). (If a site is not owned by the grantee or the company planning to use the site – as named in response to Question 5 above – then provide a "Right to Use" attachment with documentation demonstrating the right to use the site. Such evidence could be a signed letter from the proposed operator on its letterhead attesting to its right to use the property or a letter of concurrence from the owner of the new site.)

Attach the documents listed below (Item 9, plus Item 10 if applicable).

9. A clear and detailed site map 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 map, 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 ½” x 11”) and clearly labeled, with legends provided for any markings.

10. 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, please attach all of the following:

1. An explanation of the specific local taxes that will be affected;

2. A stand-alone letter (in other words, a letter separate from the application letter) that:

• Lists all of the affected parties;

• Includes a statement below the list certifying that this is a complete list of all parties that would be affected by this particular request; and,

• Is signed by an official of the grantee organization.

3. Correspondence from all of the affected parties (such as a local school board) indicating their concurrence (or non-objection) regarding the proposed FTZ designation.

Alternative Site Framework

Application for Reorganization/Expansion of Existing FTZ

PART THREE: JUSTIFICATION FOR NEW

OR EXPANDED MAGNET SITES (if applicable)

You will only need to complete this part if you are proposing new or expanded Magnet sites. If you are only proposing to modify (remove acreage) from existing sites, you will only have to complete Part Four.

1. Explain in detail the need for each new or expanded Magnet site to provide FTZ services to the community, including specific expressions of interest from proposed zone users.

2. Why would your zone be unable to meet businesses' needs for FTZ services even though your zone has existing Magnet FTZ sites (as applicable) and the ASF enables rapid, simple designation of Subzones (or Usage-Driven sites) to serve future zone users 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 Subzone or Usage-Driven designation for any company ready to use FTZ procedures throughout your Service Area.)

3. 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. Indicate the public entities involved in the site-selection process.

4. 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 maps must be legible and letter-sized (8 ½" x 11").

Alternative Site Framework

Application for Reorganization/Expansion of Existing FTZ

PART FOUR: SITE-SPECIFIC INFORMATION FOR

NEW/EXPANDED/MODIFIED MAGNET SITES (if applicable)

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 14 and 15 (and 16, if applicable) directly behind the copy of this section for each site.

Different portions of Part Four 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 Four.

• 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 1 through 4 plus provide an updated site map as detailed in Question 14 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 Four.

QUESTIONS

1. Indicate the site's distinct identifying number: _________. This number must tie to your site tables in Questions 6 and 7 in Part One of the application.

2. List the site's address, including the jurisdiction in which the site falls (town, city, county):

3. List the total acreage within the proposed site's boundaries: __________.

4. If applicable, describe how the site relates to any existing site (permanent or temporary) and explain the circumstances.

5. Indicate the type of site (port facility, airport facility, industrial park, warehouse complex) and its current zoning. Where applicable, provide a summary description of the larger project of which the site is a part, including type, size, location and address. (Note: Sites (or areas within a site) with inappropriate zoning – such as agricultural, retail, or residential – are not eligible for FTZ status and should not be proposed in any application.)

6. Address the degree to which the site duplicates types of facilities at other proposed or existing sites in the zone.

7. Describe the proposed site’s (or expanded portion’s):

• existing and planned buildings (including square footage)

• existing and planned activities

• whether the site is master planned

• projected timetable for construction and activation

• possibilities and plans for future expansion

8. List the companies that currently occupy the site (or expanded portion):

9. Briefly describe the transportation infrastructure serving the site, including its ties to the broader regional/national transportation system.

10. Briefly describe the physical security measures that will be used for the proposed site (or expanded portion) in order to meet CBP requirements.

11. Explain how the site will accommodate multiple companies’ use.

12. 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.

13. List the owner(s). (If the site is not owned by the grantee, then provide a "Site Ownership" attachment with a letter of concurrence from the property owner(s).)

Attach each of the documents listed below (Items 14 and 15, plus 16 if applicable).

14. A clear and detailed site map 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 map, 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 ½” x 11”) and clearly labeled, with legends provided for any markings.

15. Signed letters of intent to use the proposed FTZ site (or expanded portion) on letterhead from firms considered prime prospects for use of the site (or expanded portion).

16. 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 (or expanded) site, please attach all of the following:

1. An explanation of the specific local taxes that will be affected;

2. A stand-alone letter (in other words, a letter separate from the application letter) that:

• Lists all of the affected parties;

• Includes a statement below the list certifying that this is a complete list of all parties that would be affected by this particular request; and,

• Is signed by an official of the grantee organization.

3. Correspondence from all of the affected parties (such as a local school board) indicating their concurrence (or non-objection) regarding the proposed FTZ designation.