"Activity involving the substantial transformation of a foreign article resulting in a new and different article having a different name, character, and use, or activity involving a change in the condition of the article which results in a change in the customs classification of the article or in its eligibility for entry for consumption (15 CFR 400.2(o))."

For most companies, this means that if the HTSUS number of any foreign status component changes, production authority is needed.

• The first step is to submit a "Production Notification".
• The production notification includes a list of your foreign status components and finished products.
• A 40-day public comment period will be opened
• The standard timeframe for the FTZ Board to make a decision on a production notification is 120 days from submission.
• If the FTZ Board determines not to authorize certain activity at the end of the notification process, the applicant may choose to use the more extensive “application” process for production authority.