foreign-trade zone (ftz) lono requests steve boecking vice president alliance corridor, inc. 13600...
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FOREIGN-TRADE ZONE (FTZ)
LONO REQUESTS
Steve BoeckingVice President
Alliance Corridor, Inc.13600 Heritage Parkway
Fort Worth, TX 76177817.224.6050
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.
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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
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FTZ STRUCTUREU.S. Customs and Border Protection
FTZ Grantee
Operator
Foreign-Trade Zones Board
UserUser User
Operator
User
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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.
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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
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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)
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April 21, 2023
IDI Spec Building
•Building is empty and requests FTZ LONO to enhance the marketability.▫Building Size 730k SF
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April 21, 2023
12
IDI
GE
13GE Transportation and IDI Spec Building
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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
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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
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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
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April 21, 2023
AG58 in ALLIANCETEXAS
Animal Health
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Hillwood Land in Northlake259 acres
THANK YOU!
Steve BoeckingVice President
Alliance Corridor, Inc.13600 Heritage Parkway
Fort Worth, TX 76177817.224.6050
FTZ Projects:GE Transportation
SamsungIDI
Hillwood
22Alliance Corridor, Inc.
April 21, 2023