U.S. Foreign Trade Zones (FTZ) No. 94

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 on 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 (inverted tariff), the finished products may be entered at the duty rate that applies to its condition as it leaves the zone (requires prior authorization).
  • Logistical Benefits. Companies using FTZ procedures may have access to streamlined customs procedures (e.g. “weekly entry” or “direct delivery”).
  • Other Benefits. Foreign goods and domestic goods held for export are exempt from state/local inventory taxes. FTZ status may also make a site eligible for state/local benefits which are unrelated to the FTZ Act.

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, click here.

FTZ Operator OFIS portal to submit Annual Report, click here.

Training and Tutorials on how to create and submitting annual report, click here.

Frequently asked questions and FTZ Fundamentals, click here.

Resources on U.S. Department of Commerce International Trade Administration Foreign Trade Zones, click here.

For inquiries, contact Manuel De Luna at mdeluna@ci.laredo.tx.us or by phone at 956-795-2000 ext.2823

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