Foreign Trade Zone Manual

category of new sites through MBM action (as long as acreage from the 2,000-acre activation limit is available to be allotted). However, the ASF proposal’s increased flexibility for Grantees is tied to several specific limitations that will increase zones focus on active sites. The most important of these limitations is consistent application of “sunset” limits, as described in more detail below. As with traditional practice, no proposal to add or modify a zone site will be approved unless the appropriate Port Director has concurred on the proposal.

There are several key terms to understand regarding the ASF: “Service Area” is the geographic area (such as specific counties) where a Grantee intends to be able to propose future zone sites. If approved under the ASF, the zone could serve sites throughout the service area based on companies’ needs for zone designation.

“Magnet” sites are sites intended to attract multiple potential Operators/Users.

“Usage-Driven” sites are designated to meet a specific Operator /User’s present need for zone designation (rather than being designated speculatively to try to attract future Operator s/Users).

A Usage-Driven site is tied to the specific Operator /User for which it was designated and could not be used by any other entity. A separate minor boundary modification action would be required to redesignate a Usage-Driven site for another Operator /User.

“Activation Limit” is a cap on the amount of space that can be in CBP “activated” status simultaneously. The Board’s practice has long involved a 2,000-acre activation limit for any Grantee. The ASF also applies activation limits on a site-specific basis (for example, a 500-acre industrial park site could have a 200-acre activation limit so that no more than 200 acres of the site could be in activated status simultaneously). ACE and the Board’s web site will track all sites and activation limits A “Sunset Limit” for a site means zone designation self-removes if there is no zone activity at the site before the sunset date. For Magnet sites, the default sunset period is 5 years (with variation possible based on circumstances, including possible permanent designation for one Magnet site). Usage-Driven sites have a three-year sunset period. FTZ activity at a site during sunset period simply resets the sunset date for an additional 5 years (Magnet) or additional 3 years (Usage-Driven).

To move their FTZ into the ASF, a Grantee would submit an ASF reorganization application to the Board. The application format is available at www.trade.gov/ftz and would follow the procedures described in Section 4.2. Once such an application has been filed by the Board, notification requesting technical comments would be sent to the Port Director. Once an FTZ has been reorganized under the ASF, requests for Usage-Driven Sites could be filed. Requests for usage-driven sites would be processed under the minor boundary modifications procedures (see Section 4.4) and CBP technical comments would accompany the request. (h) Application Review – The examiner, appointed by the Executive Secretary, thoroughly reviews the application and the comments presented orally or in writing. If 42