foreign-trade zone (ftz) lono requests steve boecking vice president alliance corridor, inc. 13600...

FOREIGN-TRADE ZONE (FTZ)

LONO REQUESTS

Steve BoeckingVice President

Alliance Corridor, Inc.13600 Heritage Parkway

Fort Worth, TX 76177817.224.6050

steve.boecking@hillwood.com

FTZ Projects:GE Transportation

SamsungIDI

Hillwood

1April 21, 2023 Alliance Corridor, Inc.

FOREIGN-TRADE ZONES (FTZ)

• “A Foreign-Trade Zone is a restricted-access site, in or adjacent to a Customs port of entry” Regulations of the FTZ Board (19 CFR Part 400)

• FTZ’s are considered “outside the US Customs Territory”

• Foreign and domestic merchandise can be stored or manufactured before formal Customs entry procedures

• FTZ’s are a trade program established by the US Congress in 1934 to create jobs and facilitate international trade in the US.

2Alliance Corridor, Inc.

April 21, 2023

Imported Products Held in FTZ Duty-Free

Domestic ShipmentsDuty Deferred

Exported Products No US Duty Paid

FTZ

Alliance Corridor, Inc.

FOREIGN TRADE ZONE

-Foreign Status Goods

-Customs Cleared Goods

Warehouse – Without FTZ

US Customs

Warehouse – Using FTZ

4Alliance Corridor, Inc.

April 21, 2023

FTZ STRUCTUREU.S. Customs and Border Protection

FTZ Grantee

Operator

Foreign-Trade Zones Board

UserUser User

Operator

User

5Alliance Corridor, Inc.

April 21, 2023

Benefits of FTZ•Defer Reduce or

Eliminate Duty•Reduce Import

Expense•Manage Inventory Tax•Improve Supply Chain•Quota Management •Repair Labeling Errors•High Security.

Alliance Corridor, Inc.

January 21, 2013

PART 400-REGULATIONS OF THE US FOREIGN-TRADE ZONES BOARD §400.16 Exemption from state and local ad

valorem taxation of tangible personal property.

Tangible personal property imported from outside the United States and held in a zone for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing, or processing, and tangible personal property produced in the United States and held in a zone for exportation, either in its original form or as altered by any of the above processes, shall be exempt from state and local ad valorem taxation.

7Alliance Corridor, Inc.

April 21, 2023

Alternative Site FrameworkKey Points

• Improve importers’ access to the benefits of FTZs

•Minor Boundary Modifications (MBM) are now called Usage-Driven Sites (UDS)

•UDS boundary approval is from the FTZB (DC)•Activation approval is from local CBP•Faster approval (30 days) provides a competitive

advantage for economic development•FTZ 196 ASF approved by FTZB on 10/19/2010

8Alliance Corridor, Inc.

April 21, 2023

9

IDI

HLW3 bldgs

HLW259 ac

GE

GE Transportation

•Manufacturer of locomotives and off-highway vehicles.

• Inventory is 100% exempted by TFTE, so there is no negative impact to taxing revenues.▫Building Investment $500mm▫Building Size 1.17mm SF▫Employees 650▫Wage Rates Competitive mfg wages▫Inventory Tax Effect None (TFTE)

10Alliance Corridor, Inc.

April 21, 2023

IDI Spec Building

•Building is empty and requests FTZ LONO to enhance the marketability.▫Building Size 730k SF

11Alliance Corridor, Inc.

April 21, 2023

12

IDI

GE

13GE Transportation and IDI Spec Building

14

IDI

HLW3 bldgs

HLW259 ac

GE

15HILLWOOD BUILDINGS IN ALLIANCETEXAS

AG60Vacating 06/2016

AG58Vacating06/2016

AG55Samsung-228k sf

Trican-82k sfVacant

Hillwood AG60 Building

•Building will be vacated by Exel / Lego June 2016

•Currently, AG60 is designated as FTZ under the ASF program. When Exel / Lego vacates, AG60 will lose the FTZ designation

•Hillwood requests FTZ LONO on the building to enhance the marketability of the pending vacant space

16Alliance Corridor, Inc.

April 21, 2023

Hillwood AG55 Building•Building is 360,000 SF

▫Samsung/QuietSide 227,500 SF▫Trican 50,000 SF (no need for FTZ)▫Vacant 82,500 SF

•Samsung/QuietSide is requesting FTZ LONO ▫Distributor of ductless air conditioners▫80% of the savings come from US Customs benefits▫90% of their inventory is tax exempt through TFTE ▫Impact to the NWISD is approx $17,500 / year

•Hillwood requests FTZ LONO on the entire building to enhance the marketability of the vacant space

17Alliance Corridor, Inc.

April 21, 2023

Trican

Samsung

Hillwood AG58 Building

•Building is 175,000 SF ▫Animal Health 175,000 SF (no need for FTZ)▫Thermadyne 100,000 SF (Vacating June

2016)•Hillwood requests FTZ LONO on the building

to enhance the marketability of the pending vacant space

19Alliance Corridor, Inc.

April 21, 2023

AG58 in ALLIANCETEXAS

Animal Health

21

Hillwood Land in Northlake259 acres

THANK YOU!

Steve BoeckingVice President

Alliance Corridor, Inc.13600 Heritage Parkway

Fort Worth, TX 76177817.224.6050

steve.boecking@hillwood.com

FTZ Projects:GE Transportation

SamsungIDI

Hillwood

22Alliance Corridor, Inc.

April 21, 2023