A Foreign Trade Zone Can Attract New Manufacturers
Joe Quinonez discusses how establishing a Foreign Trade Zone (FTZ) can generate economic development and jobs for local communities. Learn about the application process to become an FTZ grantee and how businesses can take advantage of duty savings and cash flow benefits.
Joe explains the Foreign Trade Zone application process and requirements for communities looking to establish an FTZ. An overview of the benefits for manufacturers is provided using the example of importing bicycle parts and exporting finished bicycles. Significant duty savings are possible through inverted tariffs. Proper collaboration between local governments, chambers and industry is key to a successful application.
Takeaways:
- Consultants are available to assist with the application and help businesses utilize FTZ programs
- FTZs provide incentives to attract businesses and manufacturers interested in international trade
- Duty savings and improved cash flow make FTZs an important economic development tool
- Communities should investigate applying for an FTZ grantee designation to open up these benefits
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- Joe Quiñonez
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