Guidelines for Minor Boundary Modification Requests: Foreign-Trade Zones

U.S. Foreign-Trade Zones Board

Guidelines for Minor Boundary Modification Requests

Minor boundary modifications are generally processed within 30 days of receipt of a completed request with CBP concurrence. Boundary modifications are intended to provide flexibility for zone grantees in managing their zone project. A modification could be considered minor if it involves substituting similar space, the proposed activity is similar to that previously authorized, and the change is consistent with the zone plan approved by the Board.

1. Letter of request signed by the zone grantee. The letter should contain the following information and attachments. It should focus on explaining why the change is minor. It should also explain why the change is in the public interest.

2. Description of change, comparing physical aspects, proposed uses and ownership of proposed new site and existing FTZ area to be deleted. Include a description of the proposed activities and types of products involved. A statement should also be included as to whether the change is intended to provide space for specific manufacturing activity, with an explanation if appropriate.

3. Explanation of the primary purpose of and reason for the change, including a discussion as to why the existing zone sites cannot accommodate the proposed activity and why the change is in the public interest.

4. Indication why change is minor, e.g.,

-- substituting similar types of space in terms of facilities involved or shifting
space within an already approved facility (port, airport, industrial park)

-- no net change in space; and, size of the parcels to be shifted is not substantial

-- consistent with zone plan approved by the Board in terms of size, scope of
operations and public interest goals

-- for modifications to general-purpose zones, evidence that the nature of the activity will
be general-purpose – e.g., the new facilities will not be primarily serving a single company,
but will be available to area businesses on a public utility basis

-- for modifications of subzones, evidence that the change will not result in activity beyond
the scope of that approved by the FTZ Board – e.g., no significant changes in products,
levels of activity, sourcing patterns or benefits

5. Written and legal descriptions of site or area being added, including addresses; description of area being deleted; and, 8 1/2 X 11" map with areas being added/deleted clearly outlined and marked. Include legend of markings.

6. Description of local public process (e.g., notifications). Identify any new operators/owners. Include letter of concurrence from owners/operators of sites being added and of sites being deleted.

7. Concurrence letter from the Port Director of Customs and Border Protection. Grantees should directly request concurrence from CBP under this administrative procedure so that the CBP letter can be attached to the request.

8. If new site located in a new community, indications of support of local officials.

9. Statement about notification/response of local tax authorities in states with inventory taxes (e.g. TX, OH, KY, WV).

10. On a case-by-case basis, other information or documentation may be needed to help determine whether the change is minor and would be in the public interest.