El Paso, Texas Foreign Trade Zone User Bond

El Paso, Texas Foreign Trade Zone User Bond

Distribution site operators, manufacturing site operators, and users that harbor merchandise in or nearby ports of entry in El Paso, Texas, also known as Foreign Trade Zone (FTZ) No. 68, are required to submit a $125,000 Foreign Trade Zone User Bond with the City. The bond is used as a guarantee that the foreign trade zone user will complete any payments that arise from the use of the zone or reimburse the City for any payments made on their behalf. 

QUOTE

The City of El Paso is one of the jurisdictions that monitor foreign trade zones, assisting the U.S. Customs and Border Protection in storing, inspecting, processing, and exhibiting merchandise and goods.

How Much Does an FTZ-68 Bond Cost?

Your El Paso FTZ User Bond can be purchased for as little as $150 per month; annual options begin at $1,250 with Jet. The cost of the bond depends primarily on your credit. See the chart below to find what a preferred credit applicant would be approved for. 

Bond TermCost
Monthly$150
1 Year$1,250
2 Years$2,188
3 Years$3,125
El Paso, Texas Foreign Trade Zone User Bond Rates

Choosing Jet for your bond allows you to work directly with the insurance company that vouches for you. There are no brokers or other middlemen who shirk responsibility or drive up your costs.

The El Paso FTZ User Bond Process With Jet

Applying with Jet is easy! Our automated application will walk you through adding in the necessary information for your FTZ User Bond quote, such as general business information and your social security number for the soft credit check. Once that’s all done, your application will be submitted for further review. A Jet team member will reach out to you for additional financial information as needed (like financial statements, proof of fidelity coverage) or whether you have had dishonesty losses in the last three years. When your quote has been approved, it will be emailed to you for purchasing.

After payment has been completed, you will receive an emailed receipt and a digital copy of your bond. Jet will send you the original copy via mail; you will need to sign it and mail it to:

Foreign Trade Zone No. 68
501 George Perry, Suite I
El Paso, Texas 79925

As for renewals, monthly payment plans don’t need to worry (each payment made keeps the bond going), but annual payments will receive notice from Jet when it is time. Renew your bond by either filling out the mailed notice or clicking the link in the email. Once you submit it, Jet will take care of the rest!

If you need to cancel your bond, send us an email at [email protected]. We will send a written notice of cancellation to the District Director; the bond will still be active for an additional 30 days before cancellation is effective. Once the cancellation is final, Jet will calculate a refund for the remaining time left on prepaid, annual terms. Monthly payments are not valid and will still be applicable until the 30-day cancellation period is complete. 

What Is the Purpose of a Foreign Trade Zone? Why Is the FTZ-68 Bond Required?

A Foreign Trade Zone, known as a free-trade zone outside of the United States, is a designated area where merchandise is held before formally entering into United States Customs and being subject to excise taxes or Customs duties. The zones must be equipped with facilities for storing, manufacturing, lading/unlading, or exhibiting goods. Merchandise brought into the zone will either be imported into US Customs or exported via land, water, or air. 

Think of the zone as a precursor to goods entering the US marketplace. While the goods are in the zone, they are not bound to customs laws, duties, or taxes; once they pass through Customs, the goods must be in compliance with customs laws and excise taxes must be paid. The benefits of such zones include: 

The El Paso Foreign Trade Zone User Bond guarantees the payment of any fees, penalties, duties, charges, interest, attorney fees, etc. that come from an FTZ user’s failure to follow regulations. The FTZ User is bound to safely store all merchandise held on the user’s property and prevent it from being taken out of the zone without proper authority. And, the user must repay the City of El Paso for any costs incurred to enforce the user’s compliance with the obligations mentioned and the Foreign Trade User Agreement. 

How Does a Foreign Trade Zone User Avoid Bond Claims in El Paso, Texas?

A zone user who does not comply with the Foreign Trade Zone Regulations (found in 15 CFR Part 400) will receive a claim on the FTZ-68 User Bond. Contact Jet right away if you receive a claim filing. We will investigate whether the claim is valid; if it is, Jet will pay out the claim, no more than the $125,000 limit. You are still responsible for your actions and will need to pay Jet back the amount of the claim. 

Does an El Paso Foreign Trade User Need Any Other Bonds?

Along with the FTZ-68 Bond for the El Paso port, a zone operator will need to have a Customs Bond, also known as a CBP Bond. This is a separate bond required by the US Customs and Border Protection used to guarantee that importers will pay due fees, fines, and taxes when their goods enter the US marketplace and follow other provisions the importer is bound to. 

El Paso, Texas Foreign Trade Zone User Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: