The cross-binutils and cross-compiler built in Constructing Cross-Compile Tools will be installed under $CLFS/cross-tools to keep them separate from the host programs. The programs compiled here are cross-tools and will not be a part of the final CLFS system or the temp-system. By keeping these programs in a separate directory, they can easily be discarded later after their use.
Create the required directory by running the following as root:
install -dv $CLFS/cross-tools
The next step is to create a /cross-tools symlink on the host system. This will point to the newly-created directory on the CLFS partition. Run this command as root as well:
ln -sv $CLFS/cross-tools /
The symlink isn't technically necessary (though the book's instructions do assume its existence), but is there mainly for consistency (because /tools is also symlinked to $CLFS/tools) and to simplify the installation of the cross-compile tools.