In Foreign-Trade Zone No. 68 manufacturers may:
- Conduct complete processing or assembly operations and defer the payment of duties until the product enters U.S. territory.
- Combine foreign and domestic components through processing, manufacturing or reassembly of products in order to qualify for lower duties. U.S. overhead or materials are also duty free.
- Avoid payment of duties on scrap and waste due to processing or manufacturing.
- Avoid payment of duties on materials used in manufacturing and on exported materials.
- Place goods intended for exports in the FTZ in order to qualify for tax rebates.
Small Manufacturing Business Accelerator (SMBA) Project
The SMBA is a project that helps small manufacturing companies expand their markets or compete on a global basis through the use of El Paso’s Foreign-Trade Zone. The objective of this project is to act as a catalyst for development of business by reducing the start up cost and accelerating the approval process for a small manufacturing business to set up in FTZ No. 68.
The qualified business will realize the following start up incentives: Activation fee would be waived; Grantee will waive FTZ transaction fees to the business for one (1) year; FTZ Operations Training fees waived for up to four (4) key employees during initial year and receive start up support from FTZ No. 68 Grantee.
An application must be submitted to the City’s FTZ Manager for review and approval. If the business is selected for the SMBA, it will sign an agreement with the City Manager or its designated representative. The business must have less than 500 and be legally established in the U.S. The business must conduct manufacturing as defined under U.S. Customs regulations.
The business must go through a manufacturing approval process with the U.S. Foreign Trade Zones Board, and will be responsible for paying any consultant and U.S. Foreign-Trade Zones Board fees necessary to obtain manufacturing approval in a Foreign-Trade Zone.