by Joe Wilhelm Jr.
Staff Writer
A new federal program has given the Jacksonville Port Authority more flexibility to attract businesses to North Florida and expand the area in which it can offer foreign trade zone benefits.
The U.S. Department of Commerce’s Foreign Trade Zone Board approved the Jacksonville Port Authority’s plan to reorganize its zone, No. 64, under the Alternative Site Framework program May 6.
This allows the service area of the zone to be expanded beyond Duval County’s borders to Baker, Clay, Columbia and Nassau counties. Prior to the board’s order, the Port’s zone was approved for 1,425 acres, but the order increased that approval to 2,000 acres.
The Port’s foreign trade zone is the first in Florida to receive enhanced status under the new Alternative Site Framework program.
“Previously, we had to tell businesses that they had to either move into our Foreign Trade Zone or go through a lengthy process (applications processed in 6-9 months) to get them included,” said Deborah Lofberg, Port Authority director of marketing services and Foreign Trade Zone. “With the new designation, companies can put their business in a place that makes sense for their business. It will be a big plus and gives us a lot more flexibility.”
By locating a business in such a zone owners can take advantage of incentives to defer, reduce or eliminate customs duties on foreign and domestic merchandise that is considered to be outside U.S. Customs territory.
A foreign trade zone is a designated location in the United States where companies can use special procedures that help encourage U.S. activity and value added, in competition with foreign alternatives, by allowing delayed or reduced duty payments on foreign merchandise as well as other savings, according to the board.
The Port’s zone previously included property at its three terminals and cold storage facilities at the Talleyrand Marine Terminal.
It also included several industrial parks in Jacksonville as well as Jacksonville International Airport. Foreign Trade Zones are usually developed in or near a U.S. Customs port of entry where goods are considered to be outside the U.S., or at least, outside of U.S. Customs territory. Under the alternative plan, sites within 60 miles of the port can receive the designation.
This also allowed Cecil Commerce Center, operating as Alliance Florida, to be designated a magnet site of the new zone.
“It’s an economic development incentive that we try to incorporate in all of our properties. It saves those companies involved in international trade a lot of money,” said Preston Herold, vice president of Hillwood Investment Properties, which is master developer for Alliance Florida.
“Our other two Alliance projects in Texas and California have those incentives available to them. It’s key for our development and it’s a difference maker for some, so we like to have the incentive in place,” he said.
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