Staff Writer
The Jacksonville Port Authority is pursuing an opportunity to speed up the process for bringing new businesses into local foreign trade zones and also is developing plans for new zones in neighboring counties.
Currently, the Port Authority has 1,425 acres approved as a foreign trade zone, and 105 are in use.
A foreign trade zone is defined as a secure, physical location within the United States with restricted access under U.S. Customs and Border Protection supervision, considered outside the territory of the U.S. for duty purposes.
The zones can be a warehouse, distribution center, manufacturing plant, fenced lot, shipyard, fuel tank, airport or port terminal. By operating in the zone, business can reduce, defer or eliminate customs taxes on goods.
“If a business is importing goods to the United States outside of a FTZ, it, in most cases, has to pay taxes on those goods before they even inspect the shipment,” said Deborah Lofberg, director of marketing service and FTZ for the Port Authority.
“If there is any damage to the shipment and they have to return items, then the business has to apply for a refund of those taxes. In an FTZ, the business can receive the shipment and not have to pay taxes on it until imported items leave the zone. Items that are shipped in, stored and then shipped back out are not taxed,” she said.
Businesses already operating in local Foreign Trade Zone No. 64 include Coach Leather, Bacardi, Mazda and J.F. Moran, which collectively brought $1.1 billion in imports through the zone last year.
To make the areas more attractive to businesses, the Port Authority applied to the Foreign Trade Zone Board to be able to operate under the “Alternative Site Framework,” which was introduced in 2009 to expedite the approval process for new users.
The old application process required six to nine months for approval and the new process can produce a decision in 30 days.
The Port Authority also requested to increase the approved foreign trade zone area to 2,000 acres.
“This is really important for us because as more business comes in from all over the world, Europe, Asia, there is more and more need for the foreign trade zone,” said Roy Schleicher, chief commercial officer for the Port Authority.
An increase in acreage would help meet the requests of some businesses that have inquired about the foreign trade zone.
“The problem is that we have companies that want to be in the program, but we have to tell them, ‘you have to fit into one of these areas,’” said Lofberg.
“That doesn’t really work for businesses. They want to take advantage of their own site and build what they need,” she said.
Possible relief might be found outside of Duval County. A zone can be located within 60 miles of the outer limits of a port of entry and the Port Authority has begun working with neighboring counties to determine their interest in offering a foreign trade zone.
Concurrency letters have been received from Baker, Clay, Columbia and Nassau counties, with St. Johns pending. Alachua, Bradford, Putnam and Union counties meet adjacency requirements and may still apply.
Identified magnet sites are Cecil Commerce Center in Duval County; the Woodstock Industrial Site in Baker County; the Clay Port and Reynolds Park in Clay County; and Plum Creek in Columbia County.
The Port Authority plans to build awareness for foreign trade zone benefits through educational seminars for interested businesses, promotion and advertising through media outlets, presence at trade shows and trade events, and partnerships with regional chamber and economic development agencies.
356-2466