A foreign-trade zone is a designated location in the United States where companies can use special procedures that help encourage U.S. activity and value added – in competition with foreign alternatives – by allowing delayed or reduced duty payments on foreign merchandise, as well as other savings. A site which has been granted zone status may not be used for zone activity until the site has been separately approved for FTZ activation by local U.S. Customs and Border Protection (CBP) officials, and the zone activity remains under the supervision of CBP. FTZ sites and facilities remain within the jurisdiction of local, state or federal governments or agencies. The “alternative site framework” (ASF) is an optional framework for organizing and designating sites that allows zones to use quicker and less complex procedures to obtain FTZ designation for eligible facilities. To reorganize under the ASF, each zone grantee will propose a “service area”. Once approved by the FTZ Board, a subzone or usage-driven site can be designated anywhere in the service area within 30-days using a simple application form. The ASF allows zone designation to be brought to any company that needs it, eliminating the need for zone grantees to predict where the zone will be needed and pre-designate sites. The Grant of Authority establishing the Laredo Foreign-Trade Zone, (FTZ No. 94) was issued by the Foreign-Trade Zones Board (FTZB) to the City of Laredo on November 22, 1983 (Board Order No. 235). Grantee was approved reorganization of FTZ No. 94 under the Alternative Zone Framework which was docketed by the FTZB on March 23, 2012 (Docket No. 22-2012) and approved by Board Order 1852 (August 29, 2012). The Service Area for FTZ No. 94 includes all of Webb County. Benefits to a zone user?

• Duty Exemption. No duties or quota charges on re-exports.
• Duty Deferral. Customs duties and federal excise tax deferred on imports.
• Inverted Tariff. In situations where zone production results in a finished product that has a lower duty rate than the rates on foreign inputs, the finished products may be entered at the duty rate that applies when leaving the zone (requires prior authorization).
• Logistical Benefits. Companies using FTZ procedures may access streamlined customs processes such as weekly entry or direct delivery.
• Other Benefits. Foreign and domestic goods held for export are exempt from state and local inventory taxes. FTZ status may also make a site eligible for additional local incentives.

Statutory and Regulatory Authority:

• Foreign-Trade Zone Act – 19 U.S.C. 81
• Foreign-Trade Zones Board Regulations – 15 C.F.R. 400
• Customs & Border Protection Regulations – 19 C.F.R. 146

Zone No. 94 Zone and Fee Schedule, Download Zone No. 94 Fee Schedule (PDF) .

FTZ Operator OFIS portal to submit Annual Report, Submit Annual Report via OFIS Portal .

Training and tutorials on submitting annual reports, View FTZ Training and Tutorials .

Frequently asked questions and FTZ fundamentals, Read FTZ Frequently Asked Questions .

Resources from the U.S. Department of Commerce International Trade Administration, Explore Foreign Trade Zone Regulations and Resources .

For inquiries, contact Dr. Federico Schaffler at wschaffler@ci.laredo.tx.us or call 956-795-2000 ext. 2822.

Sample Agreement and Applications

FTZ MAGNET Site Operator Agreement Sample (PDF)

FTZ Usage-Driven Site Operator Agreement Sample (PDF)

Application for ASF MBM Sample (PDF)