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The purpose of the FTZ program, since its inception in 1934, is to expedite and encourage foreign commerce within the United States. FTZ No. 46 and No. 47 is a business operations focused federal program designed to help regional businesses compete in the global marketplace through the elimination, deferral or reduction of customs duties on imported and exported/re-exported merchandise.
A foreign-trade zone (FTZ) is a geographical area in the United States where commercial merchandise — both domestic and foreign — receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise may be held within a FTZ without being subject to tariffs (customs duties) and other ad valorem taxes, providing tariff and tax relief to U.S.-based operations engaged in international trade. Two foreign trade zones are located in the Greater Cincinnati area.
Foreign Trade Zone 46 (Cincinnati and Southwest Ohio)
The types of warehousing and distribution activities found within FTZ 46 include the distribution of civil aircraft engine modules and containers, the production of engines for automobiles, and related parts and accessories; and aircraft/spacecraft and manufacturing and machine assembly operations. All FTZ 46 operators reported increases in the value of Merchandise Received and Merchandise Forwarded over the prior year.
Foreign Trade Zone 47 (Northern Kentucky)
The types of warehousing and distribution activities found within FTZ 47 include the distribution of civil aircraft and marine engine modules and containers, the production of petroleum products; and distribution of various textile products. All FTZ 47 operators reported moderate to significant increases in the value of Merchandise Received and Merchandise Forwarded over the prior year.
We are pleased to launch the Greater Cincinnati Foreign Trade Zone (GCFTZ) Newsletter. This quarterly update will focus on providing useful information, updates, and resources for users and advocates of the FTZ program including:
– Grantee Updates;
– FTZ User News;
– Upcoming Events;
– Guides and Presentations;
– Guest Posts;
– and much more…
Board of Directors Expands; Management Agreement Renewed with Port Authority
Greater Cincinnati’s business community has a large international component, and its regional Foreign Trade Zone program has strengthened partnerships to expand the program’s impact as an important business incentive for manufacturers and distributors. Located in eight counties in SW Ohio and Northern Kentucky, Foreign Trade Zones (FTZ) No. 46 and No. 47 comprise the region’s FTZ program, which currently has 10 active users, including GE, Festo and Milacron.
“Our goal in the past year has been to make more companies aware of the cost-savings benefits of the Foreign Trade Zone program and why it can be so valuable to a company’s bottom line,” according to Charles Miller, president of the board of directors of Greater Cincinnati Foreign Trade Zone, Inc., (GCFTZ) the program’s federal grantee. “There are initial costs and time requirements involved in zone application and activation, but the payoffs are huge if an FTZ is feasible for your company.”
The GCFTZ board recently renewed its management agreement with the Port of Greater Cincinnati Development Authority, upping it for another two years. “The Port Authority is excited to continue to manage the regional FTZ program,” according to Laura Brunner, Port Authority President & CEO. “As the Port Authority works to expand manufacturing investment in Hamilton County, the regional FTZ program is a compelling benefit.”
New GCFTZ board members
In addition to approving the Port Authority’s extended management contract, the GCFTZ Board of Directors added three new board members for 2017:
T. James Min II, Vice President, International Trade Law and Global Head of Trade Law Practice Group at Deutsche Post-DHL Legal Department;
Jeffrey Bender, Executive Managing Director at Cushman & Wakefield;
Sheila Spradlin Reich, Owner & Partner at The XPat Desk.
Andy Kuchta, Director of Community and Economic Development at Clermont County, left the board after 8 years of service.
Read the Full Press Release Here: Greater Cincinnati / Northern Kentucky Foreign Trade Zone Program Increases Regional Impact