TEXAMERICAS CENTER LAUNCES NEXT PHASE OF FOREIGN TRADE ZONE #258 IMPROVEMENT PROGRAM
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1 107 Chapel Lane New Boston, Texas TEXAMERICAS CENTER LAUNCES NEXT PHASE OF FOREIGN TRADE ZONE #258 IMPROVEMENT PROGRAM By dmcloskey Published: 04/06/2015-8:34am Texarkana, AR-TX, April 2, 2015 TexAmericas Center (TAC) has hired PointTrade Services, Inc. (PTSI), based in Panama City, Florida, to develop a more efficient approach to improve bottom-line results for companies engaging in international trade in the Texarkana region. PTSI is providing consulting services in the area of Foreign Trade Zone (FTZ) expertise and business process to support TAC in further improving operational flexibility and performance relative to FTZ #258. What is a Foreign-Trade Zone? The Foreign-Trade Zones Program is a federal program established to encourage and expedite U.S. participation in international trade. Foreign goods may be admitted to a FTZ without being subject to Customs duties or certain excise taxes. Zones also defer payment of duties until goods actually enter into the United States commerce system. Foreign-trade zones increase capital investment and use of American labour, parts and overhead by equalizing the customs treatment of U.S. activities as compared to similar activities that might take place offshore or overseas. Foreign-trade zones were authorized by the Foreign-Trade Zones Act of 1934 and are administered by the US Department of Commerce and the US Department of Treasury. 1 / 7
2 FTZ User Benefits Importers operating under foreign-trade zone procedures receive a number of economic and operational benefits. Some of those benefits include: Duty Deferral - FTZ users have the opportunity to avoid paying duties on imported merchandise until the merchandise is removed from the FTZ and enters the United States commerce system. Imported merchandise that is re-exported thus does not enter the US commerce system and is not subject to U.S. customs duties. Inverted Tariffs/Duty reduction - Companies that import component parts used in the manufacture of a final product may have the opportunity to reduce their duty liability because finished goods may incur a lower duty rate than the individually imported parts and components. Duty elimination - Benefits are available to exporters that currently file duty drawback claims with Customs & Border Protection (CBP). Merchandise Processing Fees (MPF) Reduction - FTZ users who file multiple CBP entries each week and pay significant fees in MPF each year may benefit from reduced fees. The weekly entry process allows one entry per week, generally capping the MPF payment to $485 per week or approximately $26k per year. No time constraints on storage - Merchandise may remain in a FTZ indefinitely. Satisfy exportation requirements - Merchandise entered into the U.S for warehousing, temporary importation under bond or for transportation and exportation may be transferred to a FTZ from the CBP territory to satisfy a legal requirement to export the merchandise. Security and insurance costs - CBP security requirements and federal criminal sanctions are deterrents against theft. Use of a FTZ may result in lower insurance costs and fewer incidents of loss for imported cargo. Public Benefits Foreign-trade zones also benefit the public. FTZs are known to: Help facilitate and expedite international trade Provide special CBP procedures as a public service to help companies conduct international trade related operations in competition with foreign plants Encourage and facilitate exports Help attract offshore activity and encourage retention of domestic activity Assist state/local economic development efforts 2 / 7
3 Help create employment opportunities Enhance both a company s and region s Global Supply Chain Facilitate increased security PointTrade Services, Inc. is providing consulting services to support TexAmericas Center s role of enhancing FTZ#258 user experience and profitability by developing the application to reorganize FTZ#258 to operate under the new Alternative Site Framework (ASF). The ASF offers greater flexibility to designate and manage general-purpose and subzone FTZ sites. ASF will assist TAC, the FTZ#258 Grantee, in accommodating prospective users in a more effective and expedited manner and bring the competitive benefits of a FTZ area to companies faster. PTSI will also offer the following FTZ services to the Texarkana community: 1) Free FTZ feasibility analysis, 2) FTZ initial application and setup and 3) annual FTZ administrative services for maintaining ongoing FTZ operations. FREE FTZ Feasibility On behalf of TAC, PointTrade Services, Inc. will conduct a free economic cost/benefit analyses to determine the feasibility of potential FTZ usage in the FTZ#258 service territory. PTSI s professionals will outline the import and export information needed to project potential savings in a brief questionnaire. Based on a company s import and export volumes, potential savings will be identified and presented. FTZ Applications In order to obtain a grant of authority to operate within a FTZ, an application must be submitted to the Foreign-Trade Zones Board in Washington, DC. There are many firms that can assist in the application process. TAC encourages local companies to choose a consultant with extensive experience in preparing the various types of foreign-trade zone applications for submission. 3 / 7
4 Your FTZ consultant will prepare the application and work closely with the applicant s representative to gather the necessary data and approvals to submit the application. Application services that you should be expected include: Coordinate with Grantee for sponsorship Develop and prepare application for submission Monitor application through FTZ Board process Prepare responses to FTZ Board requests, as needed Coordinate with other governmental agencies Participate in public hearings, if any FTZ Activation A site which has been granted zone status may be used for zone activity once the site or a section thereof has been separately approved for FTZ activation by local U.S. CBP officials. FTZ Project Management The FTZ consultant should be able to assist companies at all levels of management of their FTZ projects. They should assist in the implementation of FTZ software systems and offer advice to help FTZ users select the system best suited to their operations. Some firms have extensive operational and inventory control experience and will meet with systems personnel to assist in the development of an automated inventory control system and its applicable procedures FTZ Marketing & Development TexAmericas Center also chose the PointTrade Services team because of its market development strengths. PTSI has assisted many communities in achieving their development goals and maximizing the use of their zone projects. 4 / 7
5 The following highlights summarize the experience in marketing and development of PointTrade Services President & CEO, Tommy L. Berry: Direct involvement in the management of two industrial parks and an operational port/foreign-trade zone, including involvement in the design of intermodal facilities and development of office space Participation in economic development that attracted more than $100 million of new capital investment to a community Preparation and analysis of data for future planned expansion of industrial activities in a community Participation in general economic development activities Development of strategic plans for public entities, airports and sea ports One of twelve professionals who developed a strategic plan for international trade for the state of Florida Authored/published over 100 articles for the US and international markets, quoted on the front page of the Wall Street Journal, and appeared on the covers of various US/International public media Presentations to industry leaders in overseas markets While president of the NAFTZ, coordinated regional and national public relations efforts for hearings Developed and implemented new international services for the trade and customs group of a Big 4 accounting firm PTSI will support TAC, (one of the largest industrial parks in the Americas), to further optimize its current actions relative to international and foreign trade zone promotions. TexAmericas Center will be actively looking for manufacturing operations and importers of record. Foreign-trade zones offer incentives for US Manufacturers and Importers. Many US manufacturing plants face competitive situations which can quickly change and evolve. Foreign-trade zones are advantageous and offer a good return on investment as well as a level playing field on which to compete against foreign sources. Because production inputs can be admitted to a FTZ without payment of duties, duty is paid when the product is shipped from the FTZ and is based on the duty rate associated with the classification of the finished product. If the 5 / 7
6 duty rate for the finished product is lower than the duty rate for the imported components used in production, the manufacturer can achieve the savings in the difference in duties (inverted tariff). These and other savings can fall directly to the bottom-line. PTSI is one of the leaders in FTZ Administration for zone operators of simple and complex manufacturing operations as well as warehousing and distribution operations. This expertise and the relationships maintained by PTSI supports TAC s existing strategy to further improve its operational and cost efficiencies. About PointTrade Services, Inc. PointTrade Services, Inc. is an international trade consulting firm consisting of two divisions PointTrade Services Consulting and PTSI Managed Services focusing on assisting companies in achieving cost efficiencies and savings, global supply chain enhancements, advanced systems automation, and increased compliance with U.S. Customs and Border Protection, Foreign-Trade Zone laws and regulations, trade agreements and other governmental agency requirements. CONTACT: Tommy L. Berry, PointTrade Services, Inc Jenks Avenue, Panama City, Florida Tel: tberry@pointtradeservices.com Website: About TexAmericas Center: Located in the Texarkana metropolitan area, TexAmericas Center owns and operates one of the largest mixed use 6 / 7
7 industrial parks in the United States. With more than 2,000 development ready acres of land and about 1.5 million square feet of commercial and industrial product, TexAmericas Center services the four states (Arkansas, Louisiana, Oklahoma, and Texas) markets. TexAmericas Center has the operating capabilities of a municipality but functions more like a traditional real estate development company. In addition to controlling our own zoning and permitting processes and sustaining the life cycle of public infrastructure on the complex, TAC has the capability to lease, build to suite, or facilitate Greenfield owner-constructed projects in a timely and efficient manner. At TAC, we stream line leasing and manage government development processes all through a single point of contact. Our customers benefit from faster market entry by resolving zoning, permitting, inspection, and state and local incentive programs through a single point of contact at TexAmericas Center. Tenants of TexAmericas Center tend to be private business owners and corporations seeking flexible and cost effective space solutions. If you would like more information about this topic, please contact Eric Voyles/Executive Vice President, CEDO at (903) or at Eric.Voyles@TexAmericasCenter. 7 / 7
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