Approved on October 12, 1970, Foreign-Trade Zone #12 became the first inland FTZ established away from a major seaport — a groundbreaking move that redefined how inland regions could participate in global trade. With a Grant of Authority issued by the Foreign-Trade Zones Board, FTZ12 laid the foundation for efficient, duty-advantaged commerce right at the U.S./Mexico border.
For over 50 years, McAllen FTZ has served as a model for inland trade infrastructure, offering businesses the same customs benefits once reserved for coastal ports — but with unmatched access to cross-border logistics.
You don’t have to relocate your company to join the FTZ program. ASF offers greater flexibility, a much simpler process, quicker Minor Boundary Modifications when designating a location. ASF eliminates the need for zone grantees to pre-designate a site.
Applying for FTZ designation might seem complex — but it doesn’t have to be. At FTZ12, we make the process clear, collaborative, and focused on your business goals. Whether you’re within our service area or exploring the Alternative Site Framework (ASF), our team will guide you through each step — from initial consultation all the way to site activation and beyond.
The first step starts with a conversation. Connect with the FTZ12 team to discuss your business needs, location, and long-term goals. We’ll guide you through the basics of the Foreign-Trade Zone program and help determine which path best fits your operations.
What’s included in this step:
Discuss FTZ benefits and how they apply to your operation
Identify if your site is within the FTZ12 service area
Determine if a Usage-Driven Site or Subzone is appropriate
Provide basic site details: acreage, square footage, and location
Share a preliminary site map (if available)
Outline your summary of proposed activities
Begin collecting required letters of support (as needed)
FTZ12 will evaluate your submitted information to confirm whether your site qualifies for FTZ designation under the standard service area or the Alternative Site Framework (ASF). If your site falls outside the typical zone limits, ASF may still allow your business to participate — without needing to relocate.
What’s included in this step:
Confirm site eligibility within FTZ12 service area or ASF
Coordinate with FTZ12 Grantee and local authorities as needed
Address any zoning or operational questions early in the process
Receive initial go/no-go feedback on your project’s feasibility
Once eligibility is confirmed, the formal application process begins. FTZ12 will help you complete and file the necessary documents — including a Minor Boundary Modification (MBM) or a Subzone request, depending on your location and designation type.
What’s included in this step:
Finalize designation type: Usage-Driven Site or Subzone
Submit finalized site map and activity summary
Include letters of support from relevant stakeholders
FTZ12 helps complete and review the full application package
Submit documentation to the Foreign-Trade Zones Board for review
After approval, FTZ12 assists with the final steps to officially activate your site. This includes securing U.S. Customs and Border Protection (CBP) oversight, establishing inventory controls, and preparing your facility for FTZ operations.
What’s included in this step:
Receive formal approval from the FTZ Board
Coordinate site activation with CBP and FTZ12
Implement required inventory control and recordkeeping systems
Begin operations under FTZ status
Access full FTZ benefits: duty deferral, reduction, or elimination
Once your FTZ site is activated, your responsibilities don’t end — they evolve. Businesses operating within FTZ12 must submit an Annual Report to the Foreign-Trade Zones Board using the OFIS (Online FTZ Information System). This report includes data on inventory movement, imports, exports, manufacturing activity (if applicable), and more.
In addition to the OFIS report, businesses are also required to complete an annual reconciliation with U.S. Customs and Border Protection (CBP). This ensures all inventory, entries, and activity align with CBP oversight requirements.
FTZ12 provides guidance and support throughout this process, helping you stay compliant and avoid delays or penalties. Our team works closely with zone operators to make sure reporting is submitted correctly and on time — so you can focus on running your business.
FTZ 12 serves a broad area across Hidalgo County and surrounding regions — and thanks to the flexibility of the Alternative Site Framework (ASF), your business doesn’t need to relocate to take advantage of FTZ benefits. If your location falls within a qualifying distance from a U.S. Customs and Border Protection (CBP) port of entry, you may already be eligible to apply.
Under the FTZ Act, zone sites must be located within or adjacent to a designated U.S. Customs and Border Protection (CBP) port of entry. This requirement is met if your site is:
Located within the port’s official boundaries, or
Within 60 miles or 90 minutes’ drive of the port’s outer limits
(verified by the CBP Port Director)
For businesses located outside this range, there’s still a path forward. Sites may qualify as subzones if U.S. Customs determines that enhanced oversight procedures can be maintained.
Need help determining if your site qualifies? We can assist with eligibility reviews and documentation.
If your business performs manufacturing, assembly, kitting, or transformation of goods within FTZ12, you’ll need Production Authority granted by the FTZ Board. This approval allows you to unlock even greater savings and operational advantages by conducting production activities inside the zone.
FTZ12 helps guide you through the entire application process — from submission to interim approval — and ensures your application is fully compliant with federal requirements. With the right approvals in place, your business can reduce or eliminate duties, streamline supply chains, and maximize cost-efficiency like never before.
Submit a Prior Notification Application
A 40-day public comment period opens
The FTZ Board issues a decision within approximately 120 days
You may request Interim Approval while awaiting the decision
If more detail is needed, a full Production Authority Application is required
Use the official Duty Savings Estimator to calculate how much you could save by producing inside the zone.
Here’s a breakdown of common FTZ-related fees and
some expert consultants that can help guide your application:
(One-Time):
Subzone / Usage-Driven Site (per operator): $6,500
Boundary Modification: $3,500
Change in Scope Authority: $1,500
Activation Fee: $1,000
Production Notification/Authorization: $1,500
Whether you’re new to the FTZ program or ready to activate your own site, our team is here to guide you. From eligibility to activation and beyond, FTZ12 offers the support, tools, and experience to help your business thrive.
Get in touch with us today — and take the first step toward a smarter logistics future.
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