Despite the
potential benefits, some companies delay in applying for
subzone status because they have heard that the
application process can be long, difficult and expensive.
Of course, time is relative. It usually takes from 12 to
18 months to process an application for a subzone.
However, the rewards--the savings of operating in an
FTZ--will last for decades.The cost of applying is relatively small and
varies somewhat. Grantee offices, both at the local and
national level, charge a one-time application fee. Under
some circumstances, the national application fee is
refundable, but the local fee is not. Application fees
vary somewhat. However, in most instances, total fees at
both levels will be well under $10,000.
For a variety of reasons,
both economic and political, some companies are less
likely to be granted subzone status. Among them are
businesses engaged in steel manufacturing and
shipbuilding, textiles and television tubes, sugar and
oil refining, and bicycle parts. These businesses aren't
automatically prohibited from becoming FTZ’s,
because each application is processed individually. But
businesses in those areas can expect to go through a
longer and costlier application process, with a higher
risk of rejection.
Most companies can give
themselves a headstart toward receiving those savings by
enlisting the help of the Port of Moses Lake. We will
connect you with FTZ experts who can help companies like
yours gain the benefits of an FTZ, often without
experiencing the unnecessary delays and costs that have
hampered other companies seeking to become a foreign
trade subzone.
The Application
Process
Under current regulations
set by the Foreign-Trade Zones Board and the U.S. Customs
Service, general purpose Foreign Trade Zones are
generally located within 60 miles or 90 minutes of a U.S.
Customs Office. Special purpose subzones require less
frequent on-site visits and less supervision and may be
established outside the limits set for general purpose
zones.
Companies that want to
operate a general purpose zone or be granted status as a
subzone should start by contacting the Port of Moses
Lake.
If your company wants to
apply for the right to operate either type of foreign
trade zone, you need to provide the Port of Moses Lake
with the following:
- A letter describing
the company, its ownership and other related
information.
- A business plan
showing how the site will be used and service you
will provide.
- An annual report or
financial statement for the two years immediately
before your application.
- A site description of
the facility or land, with photographs, floor
plans and dimensions.
- Any additional
information showing the potential for new
investment, job creation and other benefits to
the community.
After receiving this
information, the staff of the Port of Moses Lake will
prepare a report to its Board of Directors for their
consideration. In reviewing the application, the Board
will determine the economic impact, the number of jobs
that will be created, how much money will be invested and
other factors.
Once an application gains
approval from the Port of Moses Lake Board, it's sent on
to the National Foreign Trade Zone Board offices in
Washington, D.C. The national board, which includes
representatives from the Secretaries of Commerce,
Treasury and the Army Corps of Engineers, reviews the
application and publishes it, holds public hearings and
receives comments on the application.
Generally, the length of
time it takes to process an application at both the local
and national level depends on whether it involves
sensitive trade issues, potential conflicts with other
zone operators, and other factors.
