Approved on October 26th, 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 FTZ #12 team or your local economic development representatives in Hidalgo or Willacy County to discuss your business needs, location, and long-term goals. Willacy County businesses can begin with their local representatives, who can help explore opportunities and coordinate with FTZ #12 on program eligibility and next steps. Together, we’ll help you identify the path that 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.
Our service area has expanded! With the Foreign-Trade Zones Board’s approval to include Willacy County, FTZ #12 now brings the flexibility of the Alternative Site Framework (ASF) to businesses across Hidalgo and Willacy counties, Texas.
Your business may be able to access FTZ benefits at its existing facility—without relocating. Through the ASF, eligible companies within our approved service area can apply for FTZ designation through a streamlined process.
More Opportunities for Regional Trade
The expansion extends FTZ #12’s reach to Willacy County, including Port Mansfield, creating opportunities for businesses involved in importing, exporting, warehousing, distribution, and maritime-related trade.
Does Your Facility Qualify?
Being within our service area is the starting point. Each facility must receive FTZ designation and complete activation with U.S. Customs and Border Protection (CBP) before operating under FTZ procedures. Production activities may also require separate FTZ Board authorization.
Facilities must meet the FTZ Board’s location requirements by being:
Outside our approved service area? Contact us to explore whether a subzone application may be appropriate for your facility.
Discover what FTZ #12 can do for your business. Our team can help review your location, explain the designation and activation process, and identify your next steps.
Contact Us to Explore FTZ Eligibility
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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