GUIDELINES FOR FAST TRACK APPLICATIONS

**\[Note: This guideline is intended to cover a wide range of cases,
with most cases involving only certain factors of those listed
below.\]**

Section 400.32(b)(1) of the FTZ Board regulations (15 CFR Part 400)
provides for the submission and processing of certain applications for
non-controversial manufacturing authority within existing zones or
subzones using a reduced process with no application fee. The
application can be in letter form from the grantee or operator (requests
from operators should contain a statement as to that status). The
request should contain a statement that it is being submitted under
Section 400.32(b)(1) of the FTZ regulations, with evidence that the
request qualifies for submission under this section, using one of the
four following situations:

> 1\. Requests that are based on recent Board approvals under similar
> circumstances should list and discuss the recent Board approval or
> approvals which apply, explain why they should considered similar to
> the proposed manufacturing. ARecent@ would normally be interpreted as
> those approved in the past 3 years. For the proposed manufacturing to
> be considered Aunder similar circumstances@ the request should
> demonstrate that the proposed manufacturing involves:
>
> \- the same finished products as those already approved
>
> \- the same foreign components
>
> \- no new inverted tariff situations
>
> \- a similar sourcing and U.S. value added situation
>
> \- a similar international competitive situation
>
> (In presenting evidence for this section information can be used from
> FTZ Board Fed. Reg. notices of applications and orders, and reference
> can be made to information in the economic discussion section (below)
> relating to products, components and competitive situation/public
> benefits.)
>
> 2\. Requests that are for export only authority only need to state
> that the request is so limited, indicating a willingness to accept an
> appropriate restriction.
>
> 3\. Requests that do not involve the election of non-privileged status
> need to state that the request is so limited with no inverted tariffs
> or significant scrap savings involved, and indicate a willingness to
> accept an appropriate restriction.
>
> 4\. Requests involving alternatives to Customs bonded procedures
> should present be accompanied by a letter from the Customs Port
> Director indicating Custom=s determination that the proposed activity
> could otherwise be done under Customs bonded procedures and concurring
> in the proposal.

ECONOMIC DISCUSSION

The economic discussion should be tailored to the type of request being
made. For example, requests for export only authority need to provide
only basic information on components, sourcing and the international
competitive situation. A similar situation would apply to cases limited
to receiving foreign merchandise in privileged foreign status. More
detailed information is required for cases involving inverted tariff
situations (this is in part related to the similar circumstances
assessment).

> [Company/Plant Background]{.underline} \-- Give a brief profile of the
> company/facility proposing to conduct the activity, including as
> appropriate:

\- Location

> \- Products/sales
>
> \- Other company plants that make the product to be manufactured under
> FTZ procedures (foreign or domestic)
>
> \- Sources of supply for materials and components used in the proposed
> subzone
>
> \- Types of customers
>
> \- Company or plant=s international competitive status and plans
> (Losing/gaining shares in world/domestic markets. Why? Problems? Plans
> to overcome problems?)
>
> [Product Description]{.underline} \-- Describe products to be
> manufactured in the subzone to include: (When describing a product,
> material or component, the SIC code (7 digits) and Customs HTS
> Classification (6 digits) should be given and duty rates supplied when
> appropriate)

\- Description of finished products, end use and duty rates

> \- Production process and material/components used for each product
>
> \- A list of imported components (current and proposed), their duty
> rates, and their percent of finished product\'s material value (F.O.B.
> Price) (minor components may be categorized)
>
> \- Estimate of U.S. value added as a percent of finished product\'s
> value
>
> [Zone Benefits to Company]{.underline} \-- Select from the following
> list, the types of FTZ savings that apply to your situation (ranges,
> approximations and estimates may be used):
>
> \- Duty, quota, excise tax, and inventory tax benefits
>
> \- Logistical/paperwork/procedural benefits
>
> \- Inverted tariff benefits, if any
>
> \- Percent U.S. value added or foreign value (overall) of products
> made in proposed subzone
>
> \- Scrap or wastage factors
>
> \- Exports and drawback
>
> \- Explain in detail how zone procedures will help the company
>
> \- What other problems will zone procedures solve?
>
> \- Estimated annual dollars savings from zone procedures (show or
> describe how figure was derived) (ranges may be used)
>
> \- Estimate zone savings as a percent of total cost for each final
> product category (ranges may be used)
>
> [Public Benefits]{.underline} \-- Demonstrate how the public benefits
> in the subject case are similar to those in previously approved cases
> \-- i.e., how FTZ procedures will result in or contribute to
> production, employment at the facility that might otherwise occur,
> abroad, including, how the subzone will (using those factors that
> apply to current proposal):
>
> \- Encourage exports. Give current and prospective export percentages
> for each product. Discuss how reduced Customs costs will help company.
>
> \- Encourage company to shift operations to U.S. or to keep operations
> in U.S. What are the alternatives? What are the pressures on the
> company to stay or move abroad?
>
> \- Compete with imports in domestic market. Level of import
> penetration. What advantage do imports have? Price differential?
> Product type or quality differential? Explain how zone procedures will
> help to displace imports in the U.S. market.
>
> \- Result in a net increased in U.S. value added. Discuss in terms of:
> percent of production that is expected to displace imports versus
> percent that is expected to displace U.S. products; and, estimated
> value added by firm\'s manufacturing operation versus total value of
> finished product.
>
> \- Encourage plant/company employment. What are employment trends and
> prospects (give figures)?
>
> \- Affect the company\'s purchasing patterns related to imports of
> either components or end products. Is the firm importing now? Why? Are
> these products available in the U.S.? Would zone procedures encourage
> additional imports? Explain.
>
> [Environmental Impact]{.underline}
>
> \- Indicate local zoning and status of any applications for
> construction approvals.
>
> \- Will the use of FTZ procedures change the physical aspects of the
> plant or its operation?
>
> \- Is FTZ status or the use of FTZ procedures a requirement or a
> precondition for the proposed activity or construction at the plant?

\- Copies: 4 copies plus original