Foreign Trade Zones | associates2

FOREIGN Trade Zone Development

The definition of a Foreign (or Free) Trade Zone: An Airport, seaport, or any other designated area for duty-free import of raw materials, components, sub-assemblies, semi-finished or finished goods. Such items can be stored, displayed, assembled, or processed for re-export or entry into the general market of the importing country (after paying the required duties).

RVA concentrates on client education and business development of FTZs in North America, with a specific focus on Southern Nevada.

The History of the US Foreign Trade Zone Program

Launched with the 1934 legislation The Foreign-Trade Zones Act was one of two key pieces of legislation passed in that year in an attempt to mitigate some of the destructive effects of the Smoot-Hawley Tariffs, which had been imposed in 1930. The Foreign-Trade Zones Act was created to "expedite and encourage foreign commerce" in the United States.

The plan called for the designation of specific geographical locations, or in the case of Southern Nevada, the entire region of Clark County. In most cases, these "zones" are typically located adjacent to Customs Posts of Entry. These FTZs fall under the supervision of the U.S. Customs Service and Homeland Security. These federal agencies conduct audit/inspections as their method of compliance, which are done under a surety bond, instead of regular onsite Customs personnel inspections. However, there are random, unscheduled spot checks.

In 1970, the US had just 8 FTZ projects with a number of subzones. Today there are more than 230 FTZ projects with as many as 400 subzone projects.

Using an FTZ to Develop International Business Economic Opportunities

RVA places a special emphasis on attracting international businesses who can benefit from the use of Foreign Trade Zones to establish satellite manufacturing capabilities with a US-based labor force. Working with state and local economic development agencies, private developers and logistics providers, we offer expertise to help business owners understand the benefits of tax deferments, blended manufacturing that blurs the lines between pure imports and assembled in America.

We have a team of experts that fully understand the rules, regulations and nuances that can help an international company navigate the process and become a successful member of the US business community.

Client Focus:

A performance motorsports association who's members represented significant inventories of imported international products requested a "White Paper" that explained how to leverage "Forex" currency trading and how to maximize the strength of the US Dollar. This is an example of the extensive research and efforts we provide our clients and, in this case, their membership. Click here to download a copy of the PDF paper >>