If your business operates within the City of El Paso’s Foreign-Trade Zone No. 68, you’ll likely need a Foreign-Trade Zone (FTZ) User Bond to stay compliant with local and federal regulations.

This bond ensures that your company fulfills all Customs and Border Protection (CBP) obligations, protects the City of El Paso (the FTZ Grantee) from financial loss, and keeps your trade operations running smoothly.

 

Contact us today to get your El Paso FTZ User Bond quickly and at the lowest rate available.

 

What Is a Foreign-Trade Zone (FTZ) User Bond?

A Foreign-Trade Zone User Bond is a type of surety bond required by the City of El Paso for businesses authorized to operate within Foreign-Trade Zone No. 68.

 

It guarantees that the User (Principal)—the company utilizing the FTZ—will comply with all laws, regulations, and conditions outlined in its Foreign-Trade Zone User Agreement with the City of El Paso.

 

The bond also ensures that the Grantee (City of El Paso) is protected from financial losses due to:

• Customs duties or taxes owed to the U.S. Government
• Fines or penalties resulting from regulatory violations
• Liquidated damages arising from improper handling or removal of goods from the zone

This bond essentially acts as a financial safeguard for both the City and the federal government, providing assurance that your FTZ activities will be conducted responsibly.

 

Who Needs a City of El Paso FTZ User Bond?

Any company or operator conducting import/export or manufacturing activities within Foreign-Trade Zone No. 68 is required to file this bond before beginning operations.

 

Typical businesses include:

• Importers storing or processing foreign goods
• Exporters utilizing FTZ benefits for duty deferral
• Manufacturing or assembly plants within the designated trade zone
• Logistics and distribution centers managing bonded inventory

If your business handles foreign goods in a controlled zone, the bond is mandatory for maintaining FTZ activation and compliance.

 

Bond Form Details (As Issued by the City of El Paso)

According to the official bond form S-7890-0217 issued by the City of El Paso, the bond specifies:

• Bond Amount: $125,000
• Obligee: City of El Paso, Texas
• Principal: The FTZ User or business operating in Zone No. 68
• Surety: A corporate surety authorized to do business in Texas
• Purpose: To ensure that the User adheres to all Foreign-Trade Zone regulations and reimburses the City of El Paso for any Customs duties, fines, or penalties resulting from the User’s operations.

In short, this bond guarantees that the FTZ User will:

1. Keep all imported merchandise secure within the designated site.
2. Avoid unauthorized removal of goods from the zone.
3. Reimburse the City for any financial losses caused by violations of FTZ regulations.

Liability continues until cancelled, requiring at least 30 days’ written notice to terminate coverage.

 

Legal Basis and Compliance Framework

The bond requirement arises from the Foreign-Trade Zones Act of 1934 (19 U.S.C. §§ 81a–81u) and the City of El Paso’s local FTZ operational rules.

This act allows companies to store, manufacture, or process foreign goods in designated zones without immediately paying customs duties—creating significant cash-flow and tax-deferral benefits.

 

However, to enjoy these benefits, the FTZ User must demonstrate financial responsibility through a surety bond. The bond gives Customs and the City assurance that the User can cover any potential penalties, lost duties, or violations connected to its FTZ activities.

 

How Much Does the Bond Cost?

The bond penalty amount is $125,000, but your premium cost—the price you pay for the bond—depends on several factors:

• Your company’s financial standing and credit score
• Years of experience in international trade or FTZ operations
• Prior bond history and claim record
• Surety company underwriting standards

In most cases, qualified businesses can expect to pay between 1% and 3% of the bond amount annually, or roughly $1,250 – $3,750 per year.

Applicants with strong credit or collateral may qualify for even lower rates.

 

How to Apply for a City of El Paso FTZ User Bond

Applying for your bond is simple. Surety Bond Authority specializes in helping trade-zone businesses get bonded fast.

 

Steps to get started:

1. Complete a short bond application – either online or by phone.
2. Provide basic business information (legal name, address, type of FTZ operations, etc.).
3. Receive a no-obligation quote within 24 hours.
4. Sign and submit your bond to the City of El Paso.

Our licensed bond experts handle all documentation and ensure your bond form matches the City’s requirements exactly—including signatures, seals, and effective-date provisions.

 

Why This Bond Matters

Operating in an FTZ provides enormous advantages—duty deferral, cost savings, and simplified logistics—but it also comes with regulatory responsibilities.

The City of El Paso FTZ User Bond helps you:

• Maintain your FTZ activation status
• Demonstrate compliance to U.S. Customs and the City of El Paso
• Protect your business reputation and avoid costly penalties

Having this bond in place shows that your company is a trusted trade-zone participant—one that values integrity, compliance, and operational excellence.

 

Why Choose Surety Bond Authority

Surety Bond Authority is one of the nation’s most trusted providers of commercial surety bonds, including Foreign-Trade Zone User Bonds in Texas and across the U.S.

We understand the intricacies of FTZ compliance and work directly with local regulators, including the City of El Paso, to ensure your bond meets every requirement.

 

Our advantages include:

• Lowest rates in the market
• Fast, same-day approvals for most applicants
• Expert guidance from licensed surety professionals
• Decades of experience with import/export and customs-related bonds

Whether you’re a manufacturer, logistics company, or importer, our team will help you stay compliant and confident in your FTZ operations.

 

Get Your El Paso FTZ User Bond Today

Don’t let compliance delays disrupt your business in Foreign-Trade Zone No. 68.
Secure your bond today and operate with full confidence under U.S. Customs and City of El Paso oversight.

 

Contact us now to get your City of El Paso – Foreign-Trade Zone User Bond at the best rate in the industry.