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) Incentive
The SMBA is a unique incentive offered only in FTZ No. 68 which helps small manufacturing companies start up or expand their markets to compete on a global scale in El Paso's Foreign-Trade Zone. The purpose for this incentive is to act as a catalyst for development of business by reducing the startup cost and accelerating the approval process for a small manufacturing business to set up in FTZ No. 68. An application must be submitted to the City's FTZ Manager for review and approval. If the business is approved, it will sign an FTZ Manufacturing Agreement to proceed with FTZ Board application and Customs activation process.
SMBA Start-up Incentives:
The qualified business will realize the following startup savings:
- Activation fee will be waived;
- FTZ transaction fees will be waived for initial 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 with CBP & FTZ Board.
SMBA Qualification Criteria:
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.