What is involved in the FTZ activation process?
Before FTZ procedures can be used at an approved FTZ site, the operator must request ‘activation’ from local U.S. Customs and Border Protection. Activation requests should include the following:
- Letter on company letterhead signed by a company officer requesting the need for FTZ activation
- Letter from Greater Dayton Foreign Trade Zone, Inc. supporting the activation request
- Qualifications, character and experience of an operator, principle officers and/or key employees that are responsible for the zone are of critical importance. The activation request must therefore include completed background investigation forms on company officers and key FTZ personnel including any employee that has access or could cause charges to the inventory and record keeping system. Question on this form should be answered with complete honesty. If the background investigation discloses derogatory information, including omissions and falsehoods, the Port Director may deny the request.
- A blueprint of the area to be activated
- An Operator’s Procedure Manual describing the inventory control and record keeping system that will be used in the zone
Review of Request
- As a condition of approval of the request, the Port Director will order an inquiry by a Customs officer into the security, suitability and fitness of the facility to receive merchandise in zone status. The surveying officer may prepare a survey report addressing Customs physical and procedural standards. (Cargo Security Survey)
- The Port Director in making a decision whether to approve the request may consider other factors. (ex. sell of firm to another party prior to approval; demonstration of inability or unwillingness to comply with the law; regulations or grant conditions)
Decision on Request
- The Port Director shall promptly notify the applicant in writing of the decision to approve or deny the request to activate. If denied, the notification will state the grounds for denial. The decision of the Port Director will be the final CBP administrative determination in the matter.
- On approval of the request, an FTZ Operators’ Bond shall be executed on CBP For 301, containing the bond conditions of Section 19 CFR 113.73.
- Upon the Port Director’s approval of the request and acceptance of the executed bond, the zone site will be considered activated and merchandise may be admitted to the zone inn zone status.