What are the costs to setting up an FTZ?
To implement an FTZ program, there are start-up costs, set annual fees, and ongoing variable costs. Some costs can be clearly defined early, other costs cannot be quoted up front – they depend on how you want to organize your zone program, what potential security upgrades may be needed, and fees of third-party consultants you hire.
The below cost overview is meant to provide high-level guidance on the likely types of costs to be incurred to implement an FTZ program at your operation. The list of costs may not be exhaustive and does not account for staff time and other overhead associated with managing an FTZ.
An application that is pursuing FTZ designation from FTZ #176 that is located outside of our ASF service area or for other reasons is pursuing designation with a traditional site framework (TSF) application will also have other costs due to the National FTZ Board.
Grantee Fees set by the Greater Rockford Airport Authority discussed below can also be referenced in the FTZ #176 Tariff.
Typical Start-up Costs
Assumes the facility is located in the FTZ #176 Service area and is pursuing an ASF-MBM Application, as opposed to seeking designation under the traditional site framework. This is the most common path for companies in our service area.
| Category | Cost | Notes |
|---|---|---|
| Application fee to Grantee (GRAA) | $2,000 | 300+ Employees cost is $3,000 |
| Production authorization application fee to Grantee (GRAA) | $2,000 | Only required if manufacturing foreign status goods in FTZ; 300+ Employees cost is $3,000 |
| Activation fee to Grantee (GRAA) | $2,000 | 300+ Employees cost is $3,000 |
| Security Investments | TBD | Depends on readiness of facility; may include implementation of key card access, security cameras, etc. |
| Implementation Consulting; including but not limited to: development of procedure manual and activation package for CBP, staff training | TBD | FTZ #176 can provide list of service providers for quote |
Typical Annual Fixed Costs
Annual fixed costs are also required in Year 1 and so should also be factored into start-up costs. The Annual Fee to the grantee in year 1 is prorated to the date of the execution of the Operating Agreement with the Greater Rockford Airport Authority.
| Category | Cost | Notes |
|---|---|---|
| Annual Fee to Grantee (GRAA) | Ranges $5 – 25k annually depending on employment | Year 1 is prorated to the date of the execution of the Operating agreement with the GRAA. 1 to 50 employees……………………………………….. $5,000 51 to 150 employees………………………………….. $10,000 151 to 500 employees………………………………… $15,000 501 to 1500 employees ……………………………… $20,000 1,501 or more employees…………………………….. $25,000 |
| FTZ Bond | Estimated $5,000 | Typical requirement $250/$50,000 of bond liability; typically requires $1 Million in liability coverage. |
| Software fee | TBD | Not required if outsourcing customs entries and admissions to third-party provider. |
Typical Ongoing Variable Costs
Ongoing variable costs will vary depending on how you structure your zone operations. For example, you may choose to outsource or insource aspects of your FTZ program. Variable costs will also include a certain amount of overhead and staff resources not included below.
| Category | Cost | Notes |
|---|---|---|
| In-Bond Transportation | TBD | FTZ #176 can provide list of service providers for quote |
| Admission processing fees (if outsourcing) | TBD | FTZ #176 can provide list of service providers for quote |
| Customs Entry fees (if outsourcing) | TBD | FTZ #176 can provide list of service providers for quote |
| Ongoing staff-training/consulting as needed | TBD | FTZ #176 can provide list of service providers for quote |
