Greater Detroit Foreign Trade Zone

Criteria for Establishing
Foreign Trade Zones

Greater Detroit Foreign Trade Zone, Inc. has established the following criteria for those businesses wishing to gain approval to operate a new generalpurpose zone or subzone. Applications must include the following.

 

GENERAL PURPOSE ZONE
General purpose zones are usually warehouses that customize services and space to meet the needs of the user and are located at international port terminals, at the international airport, near the bridge and tunnel to Canada, in manufacturing centers and at major interstate highway accesses.

FOREIGN TRADE SUBZONE
A subzone is a manufacturing facility which has obtained its own zone status in order to operate more effectively. Should a firm's foreign trade zone needs not be accommodated by an existing location, additional FTZ status can generally be granted for an existing facility within 90 days of application.

 

Criteria for Establishing General Purpose Zones

  1. Physical facilities to handle the expected general-purpose zone users' needs (a legal description, site plan and maps of the proposed site must accompany all applications).
  2. Firm commitments from users that they will use the proposed general-purpose zone facilities, if approved, including the amount and duration of use.
  3. Statements by proposed users that none of the existing approved general-purpose zone sites meet their needs, including the reasons why.
  4. A marketing plan outlining how the operator will market the proposed zone site, including the magnitude of the planned marketing activities and the advantages and differentiation the proposed site has over existing general-purpose zone sites.
  5. A proposed tariff, including an evaluation of the competitiveness of the proposed charges.
  6. Demonstrated management ability and knowledge of the FTZ program and U.S. Customs policies and procedures.
  7. Payment of a non-refundable $2,000 application fee for all new zone applications, expansions, boundary modifications, etc.

Greater Detroit Foreign Trade Zone, Inc. will solicit comments from existing general-purpose zone operators regarding the proposed general-purpose zone site and consider these comments in their review of the proposal.

Except for the information submitted to the existing general-purpose zone operators to obtain their comments (outlined below), all information submitted to gain approval will be kept confidential.

Information to be submitted to existing general-purpose zone operators:

  • Location and physical facilities of proposed general-purpose zone.
  • A statement that firm commitments from potential users exist and the reason(s) why the existing general-purpose zones do not meet their needs.
  • The marketing plan of the proposed general-purpose zone operator.
  • The tariff of the proposed general-purpose zone operator.

This data, needed to solicit comments from the existing general-purpose zone operators, shall be prepared by the proposed operator and provided to Greater Detroit Foreign Trade Zone, Inc. The application fee is payable prior to solicitation for comments from existing operators.

Once comments have been received from the existing general-purpose zone operators, the applicant will be notified of comments received. The applicant will then be responsible for preparing the final application for consideration by the GDFTZ Board of Directors, including answers to comments or statements made by the existing general-purpose zone operators. The GDFTZ Board of Directors will then review the application and make its decision.

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Criteria for Establishing Foreign Trade Subzones

  1. Physical facilities to handle the subzone user's needs.
  2. A description of the use of the proposed subzone site.
  3. A statement that none of the existing approved general-purpose zone sites can meet the user's needs, including the reasons why.
  4. Demonstrated management ability and knowledge of the foreign trade zone program and the U.S. Customs policies and procedures.
  5. Payment of a non-refundable $2,000 application fee for all new subzone applications, expansions, boundary modifications. etc.

Greater Detroit Foreign Trade Zone, Inc. will solicit comments from existing general-purpose zone operators regarding the proposed subzone site and consider these comments in their review of the application.

Except for the information submitted to the existing general-purpose zone operators to obtain their comments, all information submitted to gain approval will be kept confidential.

A prospective subzone applicant shall provide to Greater Detroit Foreign Trade Zone, Inc. a brief summary of the intended operation and the reason(s) why one of the existing general-purpose zones will not meet their needs, for use in soliciting comments from the existing general-purpose zone operators. The application fee is payable prior to solicitation of comments from existing general-purpose zone operators.

Once comments have been received from the existing general-purpose zone operators, the applicant will be notified of comments received. The applicant will then be responsible for preparing the final application for consideration by the GDFTZ Board of Directors, including answers to comments or statements made by the existing general-purpose zone operators. The GDFTZ Board of Directors will then review the application and make its decision.

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