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Finance

Foreign Trade Zone Applications, Fees and Agreements

General Purpose Zone Operator/Facility/Site Application and Activation

Application Processing Fee - $10,000

This fee does not include actual preparation of the general purpose zone operator/facility/site application.

The application processing fee covers the Board of Sedgwick County Commissioners (zone grantee) expenses for obtaining the necessary approvals/resolutions for the general purpose zone/facility/site, submission of the application to the Foreign-Trade Zone Board (the board) and any necessary support required in the general purpose zone operator/facility/site application process.

Activation Processing Fee - $3,500

This fee does not include actual preparation of the general purpose zone operator/facility/site activation application to U.S. Customs and Boarder Protection (customs).

The activation fee covers grantee expenses for preparation and processing of the general purpose zone operations agreement, providing the grantee concurrence letter to customs, and any necessary grantee support required in the customs activation process.

Active Site Annual Fee - $5,000

The general purpose operator/facility/site annual fee will cover grantee expenses for oversight of the general purpose zone project and submission of the annual report to the board. If application approval by the board is not July 1, the annual fee will be prorated.

Inactive Site Annual Fee - $2,500

The general purpose zone operator/facility/site’s annual fee will cover grantee expenses for oversight of the general purpose zone project and submission of the annual report to the board. If application approval by the board is not July 1, the annual fee will be prorated.

Subzone Operator/Facility/Site Application and Activation

Application Processing Fee (New Zone or Expansion) - $10,000

This fee does not include actual preparation of the subzone application.

The application processing fee covers grantee expenses for obtaining the necessary approvals/resolutions for the subzone, submission of the subzone application to the Foreign-Trade Zones Board and any necessary support required in the application process.

Activation Processing Fee - $3,500

This fee does not include actual preparation of the activation application to customs.

The activation fee covers grantee expenses for preparation and processing of the operations agreement, providing the grantee concurrence letter to customs, and any necessary grantee support required in the customs activation process.

Active Site Annual Fee - $10,000

The subzone operator/facility/site’s annual fee will cover grantee expenses for oversight of the subzone project and submission of the annual report to the board. If application approval by the board is not July 1, the Annual fee will be pro-rated.

Inactive Site Annual Fee - $2,500

The subzone operator/facility/site’s annual fee will cover grantee expenses for oversight of the subzone project and submission of the annual report to the board. If application approval by the board is not July 1, the annual fee will be pro-rated.

Manufacturing Authorization Request - $3,500

This fee does not include actual preparation for the manufacturing approval request to the board.

The fee will cover the grantee expenses for processing the manufacturing approval request, submission of the request to the board, and base support services required in the approval process.

Expansion Applications

The following fees do not include actual preparation of the application.

  • $3,000 - Expansion application to the board to expand the designated zone site area or the scope of operations in a subzone.

  • $2,000 - Amendment to expansion application to the board to expand the designated zone site area or the scope of operations in a subzone.

  • $1,500 - Activation expansion application to customs to expand the activated area of a particular subzone area.

  • $1,000 - Amendment to activation expansion application to customs on activated areas within a particular subzone.

Boundary Modification

$2,000 - Request for boundary modification

This fee does not include actual preparation of the request for boundary modification to the board.

This fee will cover the grantee expenses for processing the request for boundary modification, submission of the request for boundary modification to the board and base support services required in the approval process.

Legal Expenses

Applicant, zone operator/facility/site agrees to pay, or cause to be paid, all legal expenses and cost which grantee incurs in conjunction with, or arising out of, any of the services provided in this fee schedule.

Miscellaneous Expenses

$100/hr. special grantee assistance

Any additional assistance or interface required with the board, customs, or any other governmental agency on procedures or operations within the foreign trade zone will be provided by the grantee on an hourly rate basis.

FTZ Grantee Policies

Applications

A detailed description of FTZ application requirements are outlined on the Foreign-Trade Zones Board website: http://ia.ita.doc.gov/ftzpage found under the category “How To Apply” and also at Sedgwick County Economic Development FTZ office. There is no guarantee that the FTZ Board will approve the project.

Removing FTZ Status

The Board of Sedgwick County Commissioners reserves the right to remove FTZ status from approved sites under the following conditions:

  • No part of the property has been activated within the time limits set by the FTZ board (not to exceed five years) from receipt of FTZ board approval.

  • There is a default in the agreement between the zone site operator/facility/site and grantee or between the property owner and grantee.

  • Property is used for residential purposes, retail sales or any other use or development that is inappropriate for FTZ status.

  • Failure to pay charges or fees associate with FTZ status.

Zone Site Operator/Facility/Site Agreement

All zone site operator/facility/sites will be required to sign a zone site operator/grantee agreement before the site can be activated with customs. This agreement states that the grantee does not participate in the day to day operations of the FTZ and this responsibility, therefore, is placed upon the zone site operator/facility/site to comply with all rules and regulations.

Landowner Agreement

Landowners will be required to sign a land owner/developer/grantee agreement before an application is submitted to the FTZ board. This agreement outlines all responsibilities that the landowner will have to complete in order to maintain FTZ status at the property.

Liability

FTZ site owner and/or zone site operator/facility/site agrees to protect, indemnify and hold harmless the Board of Sedgwick County Commissioners, its elected officials, employees and agents from and against liability, obligation, damage, penalty, claim, cost, charge, or expense, including attorneys’ fees and costs, whether insured or not, arising out of or incident to its site.

Payments

All payments are due according to the terms of the billing document of the Board of Sedgwick County Commissioners. Failure to pay any fees, charges and expenses to the board shall be a basis for termination of appropriate agreement and/or removal of FTZ status

Annual Reports

The FTZ zone site operator/facility/site or owner must submit to the Sedgwick County FTZ office no later than January 31 of each year an annual report for the fiscal year ending December 31 containing data required by the board and customs. All such statements shall be signed by appropriate officials, certifying the accuracy of the reports. The FTZ zone site operator/facility/site or owner shall prepare a narrative and submit photographs as required for the annual report to the board. Land or building s that have been leased or sold during the year must be described along with naming the new owner or lessee. Action performed electronically beginning 2012.

Construction

All new construction projects will need to be mentioned in the annual report so that the FTZ board can be informed of the updated condition and structures within FTZ sites.

Access

Representatives of the Sedgwick County Board of Commissioners, FTZ Board, Customs, and other authorized U.S. government officers, shall have the right to enter the FTZ site for the authorized and lawful purpose of examining same, conferring with FTZ zone site operator/facility/site or owner, its agents, invitees, and employees on such premises, inspecting and checking operations, supplies, equipment and merchandise, and determining whether the business is being conducted in accordance with the procedures established for the operation and management of the FTZ site.

Foreign-Trade Zone Privileges

The Board of Sedgwick County Commissioners makes no representations or warranties as to the particular privileges and benefits which may accrue to the FTZ site zone site operator or owner from foreign-trade zone site operations as those privileges and benefits may vary as a result of changes in federal law, determinations of the Board and CBP, and operational decisions of the FTZ zone site operator. The board shall in no way be liable for any costs or losses sustained by FTZ zone site operator or landowner as a result of FTZ status.

Foreign Trade Zone Board Fee Schedule Per Regulations 2008

Sec. 400.29 Application fees.

(a) In general, this section sets forth a uniform system of charges in the form of fees to recover some costs incurred by the Foreign Trade Zones staff of the Department of Commerce in processing the applications listed in paragraph (b) of this section. The legal authority for the fees is 31 U.S. C. 9701, which provides for the collection of user fees by agencies of the federal government.

(b) Uniform system of user fees charges. The following graduated fee schedule establishes fees for certain types of applications and requests for authority based on their average processing time. Applications combining requests for more than one type of approval are subject to the fee for each category.

  1. Additional general-purpose zones (Sec. 400.24; Sec. 400.21(a)(2)): $3,200

  2. Special-purpose subzones (Sec. 400.25):

    1. Non-manufacturing/processing or less than three products: $4,000

    2. Manufacturing/processing—three or more products: $6,500

  3. Expansions (Sec. 400.26(b)): $1,600

(c) Applications submitted to the board shall include a check drawn on a national or state bank or trust company of the United States or Puerto Rico in the amount called for in paragraph (b) or this section. Uncertified checks must be acceptable for deposit by a Federal Reserve Bank or branch.

(d) Applicants shall make their checks payable to the U.S. Department of Commerce ITA. The checks will be deposited by ITA into the treasury receipts account. If applications are found deficient under Sec. 400.27(b)(1), or withdrawn by applicants prior to formal filing, refunds will be made.