Title:مناطق تجارت خارجی و تعرفه های ترامپ: گزینه هایی برای توسعه دهندگان اقتصادی محلی

این پخش اینترنتی در حال حاضر فقط برای مشاهده در دسترس است و دیگر برای اعتبارات AICP CM قابل استفاده نیست. حمایت شده توسط: بخش توسعه اقتصادی توضیحات: قانون تعرفه سال ۱۹۳۰، معروف به تعرفه های اسموت هاولی، و عامل اصلی کاهش صادرات و واردات آمریکا قبل از رکود بزرگ بود. در پاسخ به این تعرفه های حمایتی، کنگره قانون مناطق تجارت خارجی در سال ۱۹۳۴ را برای “تسریع و تشویق تجارت خارجی” در ایالات متحده برای کاهش اثرات منفی اسموت هاولی تصویب کرد. در سال ۲۰۱۸، ایالات متحده بار دیگر با تعرفه های حمایت گرایانه مواجه شد، اما رئیس جمهور از طریق اختیاراتی که از طریق قانون گسترش تجارت در سال ۱۹۶۲ و قانون تجارت ۱۹۷۴ به دفتر اعطا شده بود، وضع کرد. شرکت های آمریکایی که به قطعات خارجی متکی هستند؟ برنامه ریزان و توسعه دهندگان اقتصادی چگونه می توانند از برنامه FTZ برای کمک به مشاغل و جوامعی که با این مسائل و چالش ها روبرو هستند استفاده کنند؟ مجریان ما متخصصان توسعه اقتصادی با تجربه مستقیم مدیریت، بازاریابی و حمایت از برنامه های FTZ در سراسر ایالات متحده هستند.

قسمتي از متن فيلم: One and welcome to the webcast my name is christine dorsey davis i’m the executive director of the Ohio chapter of the American Planning Association and I’m the chair of the New Urbanism division of APA and I am your webcast moderator today is Friday September 7th we will be hearing the presentation

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Maguire Sean don’t forget to unmute yourself and I am passing the baton over to you alright hey great thanks so much I really appreciate all you’ve done to help get this webinar organized today give me a minute here while I get my screen up and

Run and so you can see what’s going on and I believe we should be all set now so thanks for joining us today my name is Sean Maguire I’m the webinar coordinator for the economic development division I’ve also have the the pleasure of being a moderate your moderator and

Speaker today you know when it comes to the trade economy we’re not necessarily in uncharted waters you know in fact it was back in the 1930s that we faced a similar challenge the Tariff Act of 1930 known as the smooth Hawley tariffs was cited it has been cited as a major

Factor in the reduction of American exports and imports for the Great Depression and in response to these protectionist tariffs Congress passed the foreign trade zones Act of 1934 to quote expedite and encourage foreign commerce in the United States to mitigate the negative effects of the smoot-hawley tariff in 2018 the u.s. is

Once again faced with protectionist tariffs but levy by the president through powers granted to his office through the trade expansion act of 1962 and the Trade Act of 1974 so could the foreign trade zone once again provide a safe harbor for terror from tariffs for US companies that rely

On foreign components and how complainers and economic developers use the Foreign Trade Zone program to assist businesses and communities facing these issues and challenges the other presenters joining me today are practicing economic development professionals and foreign trade zone professionals with direct experience managing marketing and supporting port and trade zone programs across the

United States so I’m really pleased to introduce today’s panel I’ve mentioned who I am again I’m the director of economic development and data services for the Capital District Regional Planning Commission based in the heart of it all Albany New York here I’m also the director of the capital region

Foreign trades on the Past section director for the capital district section of the APA and current vice president of the New York upstate Chapter also joining me today are two really good friends of mine Angie Atwood and Isaac Barrow Angie is the Foreign Trade Zone program manager for the Columbus Regional Airport

Authority grantee of Foreign Trade Zone number 138 during Angie’s eight years with the Airport Authority she has acquired the in-depth knowledge and skills required to manage the administration and marketing a Foreign Trade Zone one 38:25 County service area Angie has been a member of the National Association of foreign trade zones since

۱۹۹۹ and is a very active member and past chair of the grantee committee she’s also serving her second term on the National Association of foreign trade zones Board of Directors Angie’s has a bachelor’s degree in business education from Ball State University and is also an accredited zone specialist

The ACS is actually naft Aziz I guess equivalency of of AICP to us errors planners also joining us from the West Coast is my friend Isaac Barrow Isaac is a world citizen and a service oriented leader passionate about inclusive community building through economic growth in his economic development role he engages in

Lithic and partnership based strategies to recruit and retain quality employers in his previous role as the business development manager at the Port of Portland Isaac has completed numerous real estate development transactions representing over 100 million dollars in investment to the region under his management Foreign Trade Zone number 45

Grew from 500 employees to 3,500 employees and from 500 million dollars in traded goods to well over 3.1 billion dollars in traded goods isaac salud in french and has spent a large portion of his life overseas and in the developing world he knows that sustainable and equitable

Growth is key to ensuring a prosperous and inclusive future and weaves core values of justice unity and sustainability into his work service and play these are in the CM designation from the American Association of airport executives he’s been a certified certified as a Portland ambassador by Greater Portland and is a certified

Commercial pilot and flight instructor though his flying is mostly just for fun these days Isaac is a graduate of Portland State University with a business degree in management and marketing so glad to have Angie and I stay with me today so let’s just give you a quick overview of what where we’re

Going in this webinar I’m going to step up to the plate first and give you a background and overview of the Foreign Trade Zone program here in the US Angie will then jump in and talk about how foreign trade zones benefit US businesses how the incentives and the

Options work to their benefit and wrapping it up is Isaac who’s going to talk about the process of designating a foreign trade zone once we get through that we’ll have some time for questions and answers you’d be able to submit those right through the webinar system

Here so again I’m going to talk about the background and overview of foreign trade zones I really want us to be able to set the stage for what a foreign trade zone is why they’re important and how the current trade environment may cause you to revisit the Foreign

Trade Zone program that maybe you’ve heard about but never have taken advantage of but I think first what we need to do is sort of set the stage here and throw out some some terms that we’re gonna kick around here duties and tariffs one is one that people often ask

Us well what’s the difference between them because they’re often used interchangeably and so in this presentation we may do that but just to give you an idea what they mean at their at their core duty is the tax that’s paid on an import that’s collected by US Customs and Border

Protection and that’s based on a tariff schedule that’s the schedule of duties imposed that’s what that’s what the tariff represents now the ability to enact tariffs lies specifically with the Congress specifically with the house and that’s empowered by the US Constitution through but you’re probably familiar

With which is the the power of the purse that’s what Congress has but the Constitution also reserves the ability to negotiate treaties with the executive branch and with the president and so the president does have the ability to negotiate trade agreements as a result in understanding this relationship will

Help you understand how some of these trade acts work and how they they come into play here but that president alone does not have the ability to set duties in tariffs doesn’t have the ability to simply a matter ly decide to impose a tariff and duty however Congress through

Some trade acts has provided the president with some limited abilities to take certain actions and trade and those are two of the Tradex that I referenced when we first got started here so you’ll probably recall that during the last presidential campaign President Trump will then Canada Donald Trump raised

Concern with a five hundred billion dollar trade deficit moving forward into 2018 the president started to exercise his authority to take certain actions on trade which were authorized by key acts again because the president can’t unilaterally make a decision to impose a tariff any action that he that he

Does take regarding tariffs has to be explicitly authorized by Congress and there’s two key acts where that occurs the first one is the trade expansion act of 1962 and in Section 232 specifically the Act allows the President to impose tariffs based on threats to national security we’ve seen that applied to

Imports of steel and aluminum into the United States back in March of 2018 there have been some exceptions to that section 232 tariffs based on negotiations with individual countries but places like China are still feeling that impact places like Canada as well jumping forward about 12 years we get to

The Trade Act of 1974 there’s two key provisions provisions and that that this current administration has referenced and utilized to address some of its concerns with a trade imbalance first is section 2 0 1 of the Trade Act which allows which was calls for the investigation allows for the investigation of domestic industry

Industries claims of interest injury or threat of injury due to expanding imports if you saw the actions that were taken against imports of washing machines and solar panels back in January earlier part of this year that was a section 201 action and that was in the case of washing machines for example

I believe that was that was initiated by whirlpool as a concern of for example the imports of Korean washing machines section 301 is the other section of the Trade Act that applies here and that’s designed to eliminate unfair foreign trade practices that adversely affect the United States we’re talking about

Practices that include dumping by a foreign nation deliberately directing significant number of exports for their country into the United States sometimes to be seen as a threat to the the overall trade ecosystem and so in this case the section 301 actions that were taken this year we’ve seen that

Mostly apply to Chinese goods starting back in March of 2018 and so considering those existing conditions that we’ve seen over the course of this year we in the foreign trade zone community have seen a greater interest in the Foreign Trade Zone program now people may be familiar with the term but aren’t always

Familiar with the the ins and outs and while we’re not going to get exactly up to the bring you to the level of foreign trade zone expert I think that by the end of this presentation you’ll have a very good awareness of how the program works and again going back to the initial

Slides the foreign trade zones we’re a creation of the foreign trade zones Act of 1934 and again response to the smoot-hawley Tariff Act and its goal was to maintain and create jobs and investment the United States the first foreign trade zone was then established in 1937 in New York City down in Staten

Island today all 50 states across the United States including Puerto Rico have established foreign trade zones more than 3,000 companies 3300 companies use foreign trade zones and in one manner or the other they don’t always use them in the same exact manner some companies have different reasons for implementing

A foreign trade zone whether it be supply chain considerations financial incentives or so on but there’s a quite a significant of quite a great participation across the country approximately 4 9 20 thousand people are employed at facilities operating with foreign trade zone status and that reflects over 610 billion dollars in

Annual trade activity exports from the foreign trade zone a robber seventy six billion dollars the Foreign Trade Zone program has actually a really impressive track record and improved when you look back to the Obama administration in fact some of the challenges that the President had issued at that time in

Terms of increasing exports the Foreign Trade Zone program exports from foreign trade zones outperformed the established by the prior administration and so we’ve got some good history of success there so who are the players who are the ones that you need to know who should be in the program here well

There’s really three key external players in Washington versus the foreign trade zones board the foreign trade zones board is made up of only two members the Secretary of Commerce and the Secretary of Treasury these officials are empowered to make just are empowered to issue appropriate applicants that grant of authority to

Establish maintain or operate foreign trade zone projects and that’s why when we talk about the local Foreign Trade Zone program often refer to them as grantees because they possess that grant of authority and that has to come from the foreign trade zones board specifically the foreign trade zones

Board staff is well like any place probably where most of the day-to-day work is being accomplished and those are officials in the Department of Commerce specifically in the international trade administration and that team is responsible for overseeing the administration of the foreign trade zones and the executive secretary heads

Up this office the executive secretary also is the the principal staff to the foreign trade zones board and while the foreign trade zones board can establish a lot of actions really the folks that are responsible for the security and integrity of of imports into the u.s. is

The is Customs and Border Protection the port director and the local community is the first point of contact for that if the port director is the customs official that has responsibility for overseeing the activation and operation of zone projects within his customs port of entry and I think Angie will cover

That a little bit more later and if we have more questions about that please you know use that chat box to ask those questions the grantee as I mentioned before that’s the enemy who has the privilege of operating established operating and maintaining of foreign trade zone in an area operators and

Users are the ones that are benefiting from the use of the foreign trade zone an operator is an entity that operates or a sub zone under the terms of an agreement with the grantee and the user is using a zone or a sub zone for storage handling or processing of

Merchandise and in some cases sometimes the the user and the operator are the same is the same entity so one of the things that we do in the foreign trade zone community with our economic development partners is try to help them better understand and identify potential candidates that would benefit from use

Of a foreign trade zone and I like to say to my partners that the minute you hear that a business is engaged and importing you know let that be a signal to you that perhaps a foreign trade zone might be beneficial to their operations realistically what we do with the as a

Grantee is that we’ll take a look at the potential lead the potential candidate and try to identify what their potential annual savings are for using a foreign trade zone you know certainly savings of a couple thousand dollars has been has proven to us to be unlikely to suggest

The 400 implementation of a foreign trade zone will have significant benefit but what we look for is we look for savings anywhere from fifty to a hundred thousand dollars through the use of the Foreign Trade Zone two initially cover the cost of implementing the FTZ and then certainly savings above and beyond

That to continue to benefit the business using the zone one of the challenges that we find is that implementation initial implementation can seem like a huge hurdle to overcome but we find that change can be beneficial in the long run there’s a lot of benefits to the implementation of a foreign trade zone

So with that I hope I’ve given you a good overview on what the Foreign Trade Zone program is and so I’d like to have Angie here talk with you about the foreign trade zone benefits Angie it’s all yours thanks Sean hello from Columbus Ohio so my first first slide John

To talk about the FTZ benefit um number one the most important thing and the number one question I ask anyone who inquires about the FTC is are you an importer a company must import product in order to have savings because this is a duty saving program that’s where you

Save when you import the products and pay that tax or Duty so three of the there are three main duty savings benefits deferral reduction or elimination seems and two other benefits one complex delivery the other weekly entry okay next one start with Duty deferral here um so let’s just start

Back up a little bit to what Sean said an FTD is an area that’s considered outside the US for customs purposes but your warehouse is still right here in Columbus Ohio or Albany New York or Portland Oregon or wherever um it is considered outside the US so think about

The supply chain and the and your goods coming in to you know by ocean container to a port of entry in a non FTP scenario right then you would file your injury with US Customs and then ten days later you’d have to pay the duties you know

That are associated with those items and the fees that are associated with processing the paperwork those kinds of things in an F T V and you don’t file your entry at that port at weight average report of n lading you file an F T V document called a 214 and your goods

Are admitted no duties are paid at that time and no fees are paid on that paperwork and your goods are moved in bond still in foreign status considered foreign merchandise into your warehouse now the way that duties are deferred is you don’t pay those duties when you’re when

The ship comes in to the port you paid your duties when you’re good the goods leave your warehouse to your customer so if you have products that move a little slowly maybe you have something in that can be in in your inventory for three or four months you’re deferring that Duty

For as long as the item is there there is no time limit on how long the disc can remain in the FTZ to tell sometimes you can see like maybe a company who services machines may have a lot to require a lot of parts you know in stock

So that they could send them to their customers or in fixes their main machines but maybe those parts you know are from 20 years ago or ten years ago or whatever and can just remain there forever you can mix foreign and domestic resource merchandise so if I get blue

Coffee cups from China and I get blue coffee comes from next door I can put them in the same bin in the same as long as they’re the same SKU number and mix them you can also manufacture you know all the products in your you’ll hear more about this later but other products

In your other parts that make up your final products do not have to be de más are out foreign you can source as much as you can domestically and only buy the ones that you need to foreign but an FCC is a little bit more flexible like that

Is flexible like that next slide dooty reduction this is mainly in the manufacturing scenario and it applies to manufacturing or assembly in the zone in the Foreign Trade Zone it’s called production because really the test there is there’s a there’s a classification on an HTS and that’s how you figure out

What duty you have to pay for what product so if that number changes the HTS number changes of your product between your parts I’ll explain a little bit later or is coming that is considered production so if I put a light bulb I’m importing light bulbs and

I’m putting it in tanning beds and what’s actually leaving my ftz is a tanning bed not a light bulb anymore so that would require an additional production authority from the FTZ board and I think Isaac will talk about the applications and those kinds of things later but there is an extra step there

But here’s the way Duty reduction works and I just like to do it I’m a hands-on kind of person so let’s just do this example here and this is true car radios have an 8 percent duty rate cars have a two-and-a-half percent duty rate radios are admitted into an FTZ remember

They’re still foreign merchandise and but when the car is put together and mint manufactures and that radio is put in a car it becomes a part of the car what leaves the FCC is actually the car which is dutiable at two-and-a-half percent this reduces the duty liability

On each radio by five and a percent maybe it’s only $100 radio it doesn’t sound like a lot of money unless you’re making a million cars or you know that could be very significant so that’s the way that you can reduce and radios are

Not the only part in a car that are more than two and a half percent so that’s the way you can reduce your duty liability in the zone okay next slide and sometimes you can actually eliminate your duty I’m a Columbus Ohio so a lot of the customers the companies who are

In my zone FTZ 138 do do this because they react sport a lot to Canada and maybe maybe Portland and Albany do the same thing it’s it’s you know just three hours so why I’m Canadian warehouse we can just react sport from here what happens is remember the goods are in

Your warehouse and there you have a major duties and then if you re export it to Kant anywhere let’s just say for Canada back out of the u.s. you never ever pay the duty associated with those items because they never entered the u.s. stream of Commerce

This is in number two on this slide you can avoid applying for duty drawback this is my number two question that I asked everybody are you an importer and then number two is are you doing duty drawback because if you know what that program is and you’re doing it you

Should probably look at the FTZ what duty drawback is is you pay your duties and when you re export the items you can ask for your money back I always say you know why do that keep your money in your cup in your pocket so

It can be a really good cash savings or cash flow for a company if they’re a heavy exporter you can also avoid duties on any scrap or defective goods so you know this is broken or torn I can destroy it am I done with customs permission and then I never you know I

Eat the cost of the product but you know I don’t have to pay the duty on it and in my zone I have a lot of textiles and they have the hefty duty rate 17 to 23 percent so if they have a delivery that’s damaged you know that can be

Significant for them sometimes the exception here is if you sell your scrap you know I do something with metal and I end up selling it you know for to recycle you cannot eat in if you sell yourself to pay the duty so next slide please so those are the

Three duty advantages to being in a zone deferral reduction elimination of the next of benefit is direct delivery and basically in a foreign trade zone anyway without direct delivery you’re good still stopping customs so you could pick up a few days you could save a few days

In your supply chain but but with direct delivery you could even get more advantages if you do if you get a shipment that you don’t know about so ok you have to be required you have to be pre-approved by US Customs ok your goods come into the

Port of entry they know your direct delivery so your goods just move automatically but what happens is the ship comes in on Saturday and oh I don’t have my e 214 files and customs doesn’t know any that this is supposed to be here if you’re pre-approved by a direct

Delivery for direct delivery by US Customs your goods will move anyway the count sounds kind of weird but I mean you know this is big security process to get approved for all this stuff and you got to be a reputable importer that’s getting the same stuff from the same

Supplier over and over and over so good digital you don’t have any delays with customs even on the weekends even after hours you’re good to deliver directly I can get it on Saturday and and then filing paperwork on Monday with US Customs when they open and everything’s

Kosher it is still good then so that can that is more of a speed thing and all of my customers want that next next type piece weekly entry okay weekly entry is a way for companies to save money on the fees that they pay to customs every time you have to every

Time you file an entry there’s a fee associated with that not only is there a brokerage fee for your customs broker to file that entry there’s a merchandise processing fee that US Customs charges you and they charge it based on the value of the goods in that shipment so

If I have approximately one hundred and forty-four thousand dollars in my shipment I’m going to max out on my fees the merchandise processing fees range from a minimum of twenty five dollars to a maximum of I can’t believe I’m saying this four hundred and ninety seven dollars and ninety nine cents so and

It’s point it’s point three four six 4% of a above of the value of the goods so if you hit $144,000 if anybody knows math or well you’re going to max out I set $498 maximum fee you have to pay Harbor maintenance you can defer and pay it quarterly it does also require

Pre-approval from customs so now that I’ve confused you royally I’m going to next slide I’ll show you an example this is a more I got to see this stuff so this will make more sense say I’m getting four shipments in Seattle for attention mints in LA and I get

Six shipments in Norfolk this is a week two twenty shipments in a week next slide and non FTC scenario all twenty shipments are entered into the u.s. stream of Commerce at the port of unladen so in Seattle la Norfolk the broker will files 20 separate entries

And hard to charge you 20 separate fees to do that each of the 20 shipments are also subject to the merchandise processing fee MPs payment so I’m using 498 here 20 shipments at $498 is nine thousand nine hundred sixty dollars a week and this is not a big shipper this

Is not a bigot I’d say this is mid-sized if you do 144 thousand dollars if you do this twenty shipments a week it’s about 150 million dollar company midsize okay so next slide in an FTC scenario when your goods are at the port of on lading no no consumption entries are filed

So the brokers aren’t aren’t doing 20 entries and charging you 20 fees no MPF is paid for each of those in fact remember all of your goods are moved in bond on duty pay to your warehouse wherever that may be and in a Foreign Trade Zone

You pay your duties when you’re good or shifts into your customer they leave your warehouse so I have all my goods already here in my warehouse customs lets you not customs the law lets you file a an estimate of what you think you’re going to ship to your customers

Over the next week when you make it high you don’t want to go over it that’s I mean yeah you don’t want to go over so you file your estimate they approve it you ship all week on your estimate at the end of your week you pay one merchandise processing fee which maxes

Out at four hundred ninety-eight dollars so instead of paying nine hundred and ninety nine thousand nine hundred and sixty dollars a week I’m only paying four hundred and ninety eight dollars a week this saves me nine thousand four hundred sixty-two dollars a week which

Is ends up to be almost a half a million dollars a year just on fees to process paperwork and once you get this set up it’s pretty much it I owe every single one of my customers use it it’s a pretty automatic thing you know you file the

Estimate and just get into a routine and that’s pretty pretty easy to manage so next slide please oh this is a good slide with all the tariffs and all the things that have happened this year in particular there are always considerations that you have to think about one quotas and safeguards

And I am assuming safe good I don’t know if you know what these are but there are countervailing and anti-dumping duties that can try to protect the US industry for example certain manufacturers you know like oh yeah anyway so they just have additional duties to help protect the domestic industry so

When you’re looking at the items that you are importing into your foreign trade zone are any of them subject to quotas are any of them subject to safeguards that doesn’t mean you can’t do them in there you know have that product in the FTC it just means you’re going to have to be

A little bit more mindful if it’s worth it sometimes with quotas I again I have a lot of textiles in my zone and so you know before 2006 there was quotas on all kinds of textiles it’s kind of gone away but there’s still a handful of quotas

And in an example of a textile and we call in Columbus cloth fast-fashion but it’s all the you know the retailers and ecommerce retailers they’re really worried about the seasonal items and so before quotas went Oh in a way they would bring all their stuff into their

SUVs and be ready to ship it to the store just the second the quota opened and then they could get it out instead of waiting in a non SPC environment and being like ok well now I can ship it over there and it takes you know 20 or

۳۰ days to get it into the store so that is an example you just kind of think about those kinds of things supply chains of a advantages you can do zone to zone transfers I have customers who do zones and transfers between their zone here in Columbus and maybe their

Zone in Reno Nevada or I have customers who also do you know as under the trance between their zone and maybe they’re shipping something out of Miami so they transfer it to a zone down there to be broken down and repackaged or something so it can it’s very flexible in the in

That way you can do a lot of moving of the goods I would say the other thing here would be the flexibility of the program a lot of times it’s compared to a bonded warehouse and bonded warehouses are a little bit more restrictive in that you know you bring things in you

Get whatever you bring in you have to send out that exact amount in a for trades and that’s not the case I mean not only is it quicker and then planned it’s way more flexible you can repackage you can real able you can you know if

You can see you know my stuff was on a train and there wasn’t it there was a big train derailment and I’m gonna bring all my stuff to an FCC and determine what I can still sell and what I have to destroy in the zone just all kinds of

Advantages you can use in a foreign trade zone so I think some of those are intangible you know you don’t really know that they’re going to be an advantage sometimes until something happens and you’re like oh yeah so um the last thing are sensitive items and trade remedies that also with sensitive

Items there are some things in in zones that are sensitive and it’s basically back to the whole I want if we need to protect the US domestic industry a good example of that is the still still an aluminum industry and they were sensitive anyway and then ftz and now

With the additional tariffs you know however with the additional tariffs it can be an advantage depending on your supply chain – so raw textiles you know fabric those kinds of things sugar some really weird things sometimes are you know there’s lots of history behind some of these things but you

Really need to look at your product and make sure it’s not one of those sensitive items that would be really prohibited and you get turned down and then FTZ and yeah there are a few states I think it’s Texas Arizona Kentucky maybe that have an ad valorem tax that

Can be abated by being an FTC being in an FTC and in each of those states it works a little differently I’m familiar with this a little bit we had this actually in Ohio until 2009 so we used to have to deal with it and I’m really

Glad we don’t have it anymore because it could really slow things down but basically personal property taxes and then can be abated and or real estate taxes I think that’s what Arizona is and but you have to do some extra steps and be mindful of that because you have to

Have any of the taxing jurisdictions they’re affected have to don’t agree if they don’t they have to not object to your application so next slide types of users first we’ll start with the warehouse and distribution operators this is from the FCC boards and report 2016 is the most recent year that we

Have available right now 17 should be coming out soon anytime so at least at the top 15 that were listed in in the FTD board’s report the vehicles now remember this is warehouse and distribution so this is a lot of just I would say storage and e-commerce on some

Of these things vehicles you fear at top of the list consumer electronics oil petroleum textile Footwear you know you can see things that that you wouldn’t think I don’t think I know consumer electronics is probably a lot of cell phones those kinds of things next next slide next slide is a list of

The production operators again look oil for in petroleum and vehicle parts consumer electronics firms there goes a lot of the same products probably because the duty rate associated with those now these are actually production they’re refining the oil they’re building the cars you know they’re putting the cell phone kits together

They’re making the bills whatever so this is actually the production and a lot of that then is associated with the storage that you saw before um when you look for types of users with the things that I look for are decent dude you gotta have a duty rate if it’s zero it’s

Hard to argue that you’re only in there for the MPF savings you know the weekly entry there has to be you know even deferring duties but I look for high due to higher duty rate in items that maybe move slow you know I have iron castings and and

They sit in my warehouse for six months and you know if they have a decent duty rate why not let them keep your money in the pocket why would you pay that and then just wait to get it back so you just really I think the the big takeaway

Right here from this this one it’s kind of a negative way to put it but yeah these are not for every company you know you really have to look at the customers products their supply chain and and just have it they need to really have it a

Part of their business strategy you know that having been said when it’s right for somebody it’s usually really right for somebody I don’t get a lot of people who are on the fence site and the other thing is what I’ve found here in Columbus is once you get wanting kind of

Look for industry clusters around you know and in my zone of getting textiles once we got one you know we go out and you could say hey this is working for other textile companies you should look at it and they’re like okay well my competitors doing I better do better at

Least look at it so but if it worked for that one company it might work for them all and I’ve ended up getting you know several of them just because one company got in so I think that wraps it up for me next person is Isaac yeah Isaac’s up

Next to talk about obtaining fpz designation good morning everybody from Portland I think I can still actually say good morning as opposed to my other friends for a little more east of us definitely good into FZ designation I want to kind of build on what Angie said

While I was managing at TC 45 which is the Foreign Trade Zone for the poet Oregon area of the metropolitan area covers three counties work with companies that literally took every single benefit that Angie talked about Porter’s got a massive cluster for the athletic and outdoor wear industry

Being home to the is North America headquarters Nikes headquarter at Columbia Sportswear and had a customer in the Foreign Trade Zone that imported all that into the distribution center and their biggest benefit was the reduction of merchandise processing fees paying a single MPF as opposed to what

In their case would have been 30 to 40 MPs per week pending on what point of the year they’re in also had to manufacturing users that both benefited from duty reduction or Duty elimination depending on where their final product was headed whether that was going to be

Within the US or back for we export and then also had a large auto import that benefited from duty deferral one of the biggest benefits in my mind from a foreign trade zone obviously there is a financial benefit to the individual companies but really what the whole

Program allows companies to do is to compete on a global scale we live in a global world trade as part of our reality and the truth is a lot of other companies don’t have nearly the same complexity within their customs environments as we do here in the US

Without the ability to level the playing field to some of these international competitions the companies within foreign trade zones that now have jobs and employment within the US would simply go elsewhere using a local example there obviously is a very large high tech cluster in Portland as well

Being home to Intel there’s a manufacturer that builds parts that are a key component of the high-tech manufacturing semiconductor manufacturing world they are a very large employer they employ about 4,000 people locally not all within the foreign trade zone and they have other bases within the US that where they have

Similar manufacturing plants through a smaller scale and about 80 percent of what they manufacture here in the Portland area gets Reax ported and simply put if they did not have access to the Foreign Trade Zone program if they were to pay tariffs on the raw materials that they were bringing in to ultimately

Manufacture these high-tech equipments they would not be based here they would have moved their factory a long time ago to somewhere in Southeast Asia where they wouldn’t face a similar tariff environment so really as an economic development tool the Foreign Trade Zone program helps keep us based manufacturing competitive on a global

Scale and this is extremely relevant today in fact I just got a notice from the Wall Street Journal about 25 minutes ago that President Trump is considering putting tariffs on an additional 267 billion dollars worth of Chinese imports and so this is a very very timely topic

And I’m expecting a lot of questions around foreign trade zones and tariffs as about 90% of the inquiries I’ve been handling recently have had to do with foreign trade zones with steel imports or other imports of goods that are on the section 232 list of additional tariffs tariffs

Next slide please Shawn I know Shawn touched on this a little bit but I thought it’d be helpful to maybe take another look at the organization obviously all the activities within the Foreign Trade Zone program call it come under the authority of the foreign trade zone board under the Secretary of

Commerce you have a couple different players and the ones I really wanted to focus on today when we talk about how to set up a site are the grantee operator and that would be essentially the typically the local economic development agency that acts as the intermediary between the foreign trade zones board in

DC and your local operators then I also wanted to touch on how to set up a foreign trade zone as an operator as well and then I know Shawn did touch on this a little bit but I want to revisit the role that customs plays as well just

Because they are a very critical player pre mentioned every part of the Foreign Trade Zone program next slide please so starting with how to establish a foreign trade zone as a grantee as I mentioned generally the grantee is a public agency our Economic Development Authority Shawn would be an example of

Foreign Trade Zone grantee as an economic development agency and the ng would be an example of a foreign trade zone that’s time to the airport or the port of entry a key regulation for the grantee is that they must operate as a public utility what this means is that

They have to treat all similarly situated users equally their fee structure must be fair and they can’t direct business either towards or away from any specific operation there is what the Foreign Trade Zone award refers to is a 6090 rule because it deals with imported goods foreign trade zones must

Be associated with a custom support of entry a single port of entry is entitled to have at least one foreign trade zone but may have additional if there’s an economic reason to that to that the 6090 rule applies that they must be within sixty miles or 90 minutes of the customs

Port of entry though there is some flexibility here and that local customs port director may elect the service site that’s outside of this range or conversely a local port director may say that a site even though it’s within that 60 90 range is not realistic for them to

Serve due to other considerations there are two basic structures for a grantee to operate under the ASF or alternative site framework and the tsf the traditional site for a mark the traditional site framework as well as in place from the establishment of Foreign Trade Zone program up until the creation

Of the ASF program in 2011 the traditional site framework basically relies on a limited number of fixed sites and so each individual company operator was established as a specific sub zones the alternative site framework is much more flexible and a lot of credit goes to the current FTC board secretary and

Recovery for the creation of the program but it as an economic development tool is much more flexible and allows a grantee to designate a service area and the process to then establish new FTC sites sub zones and operators within that survey service area is expedited because the public notice and review

Processes already gone then gone through the entire ASF service area for example here in Portland reorganized under the alternative site framework in 2014 and the alternative site framework covers the three full counties and that now means that any company regardless of where they located in those three County

Area can go through if they’re not producing goods are changing the customs codes yes HST US codes can become authorized to operate within about 30 days next slide please if you are looking to establish a new zone as a grantee you have to establish the legal authority for the zone

Specifically you must be able to show the FTC board that you have enabling state legislation that gives you the authority to act over this area and it has to be reinforced through the grantee applicants charter or grantee resolution as I mentioned before every customs port is entitled to at least one FTZ

However you must demonstrate the economic need for the first FTC and this really ties back what I was talking about earlier about the key benefit of an FTC being able to retain and grow jobs that compete on a global scale you must define the service area and document support from the jurisdictions

For example if you’re looking at a county area you have to show letters of support from the counties or the cities within that county and tax considerations this goes back to what angie was talking about the inventory or ad valorem tax you must in a situation where an FTC could reduce the ability

For local jurisdictions to collect taxes you must show that you have support from the task collecting jurisdictions for it and there is a small filing fee generally the process to establish the new ASF Foreign Trade Zone as a grantee is about a ten month process next slide please

Some things to consider is I believe this should be relevant to the planning audience is compatible zoning there are a couple things that are specifically prohibited by the Foreign Trade Zone board as activities within any foreign trade zone site and this includes residential and retail functions or incompatible zoning such as agricultural

This does not mean going back to use for trade zone 45 as an example this does not mean that the ASF boundary doesn’t include sites that are zoned for all these uses but this really comes into play when you’re obtaining a specific ftz sub zone location and it’s usually

Tied to specific operator and of course you must have the confirmation letter I was talking about earlier the FTZ sites are generally located in or near key transportation assets though this is something I would say that has evolved over the past 30 to 40 years back when

The program was put into place custom sports were generally situated along the coastal areas or key large airports now you can have custom supports of entry and you do have custom ports of entry in pretty much every state very large airports seaports for logistics hubs like the Inland Empire in California

Angie is a great example of very successful large inland foreign trade zone site and angel already touched on warehousing versus manufacturing users but obviously the zoning has to support the use that’s being proposed within the foreign trade zone site next slide please so coming back to the CBP role just

Because of how important it is you essentially have this conduit from operator to grantee to foreign trade zone that establishes the authority to operate the foreign trade zone or these specific operations but throughout all of the CBC VP the customs work crew is responsible for the enforcement and day-to-day monitoring

Activity what this means is that CBP must be consulted on every application for the zone or every new new proposal for operations or activity within a new sub zone site as an operator movement of all goods is reported to the CBP this is typically done through your CBP forms

And their automated custom system and at any time all goods within the zone and all zone records are subject to spot checks and verifications at any time really coming back to the importance of a good relationship between whether it be the grantee and the customs officer or the operator and customs officer and

When we get together industry conferences the importance of a good relationship with customs is continually reinforced next slide please so starting to look at how to establish an FTC site as an operator the first step is definitely to contact the local grantee the local grantee is going to be not

Just a conduit but also the resource most grantees and all three of us on this call will do high-level cost-benefit analysis for any proposed new operator as Shawn mentioned there is a considerable cost that goes along with the inventory controls required for foreign trade zone but those are

Generally offset and so that initial cost benefit analysis can help you determine if it’s worth pursuing further if it is if there is a benefit go through the application process determine if you are distribution or production production again relies on whether you are changing the HTS code associated with what’s imported into the

Zone versus what goes out of the zone and in the last process once you get concurrence or approval from the FTZ board is activation through the US Customs and Border Protection next slide please there are two types of designation you can have the alternative sight framework in the traditional sight framework I’ve

Chosen to focus on the alternative sight framework because really over time the traditional side framework is slowly going away given the enhanced flexibility of the ASF framework within the ASF as a grantee you can designate a magnate site and this is an area that retains a TZ designation and can be used

As a way to drive economic growth to a specific area for example within ft z 45 the entire River Gate industrial district which is by our Moline ports is designated as a magnate site within the magnate site or within anywhere within the ASF area you can designate a usage

Driven site or a sub so this typically is associated with an operator think the company that actually sets up the four trade zone does manufacturing does distribution so the distribution centers are talked about the athletic and outdoor work company is sub-zone the manufacturing sites multiple building

Six of them are sub zones for the manufacturing user that in the high-tech sector and then there is also the ability to designate a sub zone that’s actually technically under the tsf framework if you have a company that wants to be under your ft Z that is outside of your alternative site

Framework going back to another local example the ASF covers the Portland metro area there’s another smaller metro area about 30 minutes south of Portland if a company there wanted to actually take advantage of the Foreign Trade Zone if customs concurred with their ability to effectively monitor and oversee that

Operations as the grantee you could apply to have 80s f sub zone for them given their outside you’re established a SF service area next slide please so kind of just revisiting how to establish a new alternative site site framework sub zone this is just one of many processes for activation but this

Is by far the most commonly ASF sub-zone process the application is submitted by the grantee application is very straightforward can be found on the FTC board website generally depending on the extent of the company’s operations can be anywhere from four to eight pages covers site information summary of activity map locations includes either

Before or afterwards concurrence from Customs and Border Protection and if applicable the letters about the tax impact there is no FTC board fee generally if you’re not a production company if you’re not manipulating the HTS codes there is no public comment and it’s about a 30-day time period for FTC

Board approval things to keep in mind generally is that the grantee is a big resource and promoter and should be viewed as an ally throughout this process not just a regulatory body however the grantee may require an agreement between the company and grantee formalizing their relationship and the grantee may have separate fees

Associated with the application and activation process next slide please and I know the three of us covered a lot of information but there are some really helpful resources out on the web probably the best place to start is actually the US foreign trade zones boards own website and I would also

Encourage everybody to look at the Customs and Border Protection website specifically the FTZ manual this gives great guidance on what CBP is looking for in the establishment of either a new sub zone or a new foreign trade zone period and as mentioned a couple times CBP concurrence is critical for

Everything that gets done within the Foreign Trade Zone program so making sure they’re happy is key there is one large industry group the National Association of foreign trade zones all three of us are members and the information gathered from rosacea through webinars through their committee committees and through their spring and annual

Conferences is invaluable and then of course your local FTC and a map of all active foreign trade zones can be found on the foreign trade zones board website and lastly and probably the absolute best resource next slide Shawn would be the three of us and I’ll turn it back to

Shawn but you see all our contact information and would love to hear more from you either and the questions as part of this or directly afterwards great Isaac thanks so much thanks Angie really appreciate your help and then your contribution here each had a unique perspective that really added value to

This and as Isaac mentioned we’ve got a slide up here’s our contact information all three of us I think I’m gonna speak for all three of us and I’ll pay for it at the annual conference if I’m wrong but I think that you know we’re all here

To help you navigate foreign trade zones and what they mean you can also connect with me my twitter handle is at CDR pc Shawn I’m also on LinkedIn find me a lot of different places I’ve also posted that up there I do tend to post some information about foreign trade zones

And trade issues as they as they pop up along the way so with that I guess you know we’ll open it up to any questions that are out there great thank you again folks just type those questions in the chat box and don’t forget to label who you’d like to answer the questions

First one is for Angie the question is please define reputable importer which you mentioned when you were talking about Saturday importance well as with anything you get a reputation with customs on you know the way you import your goods so some people have some companies have a most companies let me

Just say that the majority must companies have a good reputation with US Customs but you know there are some that don’t or maybe they’re getting something from somewhere that isn’t going to be approved so maybe they’re getting stuff from Afghanistan or you know I don’t know but I mean they

Have to they have to you know live up to the standards that’s what I meant in an EFT easy just add a little bit more to that there are a lot of companies you know almost every company imports nowadays so Customs has a lot of things

On their hands but in an FTC the customs port you are dealing with is your local customs port not the one out in LA where your goods came in with your custom support right in your backyard and so you have a and through the whole security process in the FTC when you if

You were doing FTZ you would be very familiar with the FTC officer and in my zone and once 38 here you know they they email him directly and he responds they have a great all of my operators have a great relationship with the FTC officer and so once you’re in the zone and

You’ve been vetted and scrutinized and you are reputable according to customs the inspections and those kinds of things are more familiar with you so they kind of goes down you know it kind of they’re more comfortable they know what you’re doing so anyway that’s long a long answer to a short question

Okay thank you well we still have yes does the expense of the four hundred ninety dollar fee come from the pocket of the shipper who is losing money with the FTZ limit of $498 when doing the shipping estimate US Customs so the shipper pays that feed of US

Customs to process their paperwork so when that then when the fee is reduced to the one a week that comes out of the US Treasury however there is a paperwork reduction and it’s less work for in long runs for US Customs – so yeah do you have to weigh that you know when

That’s why we don’t really want people just getting it for the weekly entry you know there has to be some kind of the business besides that advantage to being in the zone we just don’t want to do that to take money from US Customs I mean in the

US Treasury so yeah it is definitely it is a fee that the shipper would say that they do not have to pay shippers saves customs space so I think from the viewpoint of a grantee the one thing you know that we’re looking for is our businesses to you know contribute jobs

In an investment – and that’s you know I think part of utilizing the program like Angie said well you know just using the program to benefit for from a merchandise processing fee reduction on paperwork without any other substantial benefit to the community probably isn’t in the objectives of most and probably all grantees

Okay thank you um okay if we could talk a little bit about what um a community profile kind of looks like for an FTZ as in who who’s typically doing them are we talking large cities multi County regions just communities what what does this profile look like for the average FTZ

I think you know the three of us all represent different profiles from you know Portland a major coastal city to to what Angie does you know America’s what is it Angie America’s largest inland port I don’t know we’re changing our name so yeah okay yeah it’s definitely

An inland port yeah yeah and then you know to what we are you know we’re three hours north of the the Port of New York New Jersey so I berries it really depends I think you know with a business makeup as in the community and what they’re able to utilize you know there’s

Certainly advantages to being located in areas with significant transportation infrastructure you know I think Rail Air Road see you know that all that all comes into play you know I’ll say in Albany I mean having you know the port along the Hudson River having you know

CP Rail you know other other lines that come through here having the presence of the Albany International Airport as well as the the the intersection of interstates 1987 you know puts us at an advantageous position also being situated three hours north or two and a half hours north of New York City and

Three hours south of the Canadian border you know two and a half three hours to Boston you know we find ourselves in a in an advantageous position each community can do you know do it however suits them wherever the support is I would say you know the grantee is

Normally the economic development entity in the community that’s not really the case here in Columbus when you look at it as the airport authority but if you really looked a little closer I am NOT at the passenger Airport I’m at a cargo Airport with 75 million square feet of

Industrial parks around me so it’s a more of an economic development catalyst down here at this Airport I think that’s where where were the support and your community lies for the development in any whoever that leader is I think that usually is where the grant of authority is but in community

You could do it however they like yeah and just kind of build on what Angie said I mean there’s a there’s an entity in Texas that is a private very large industrial multi-use development and they have an FTC grant of authority you see a number of airports especially cargo airports having after the

Authority’s work extensively with a small city on the south coast of Oregon that they’re considering being a foreign trade zone site simply based on a large manufacturer timber activity that they have and so really the community profile for who’s the grantee varies from small small public entities to large public

Entities to private entities to port authorities to seaports to cities to private economic development agencies that represent cities and then the operator site it’s even more diverse you can have third party logistics providers be operators to simply provide a benefit within one of their what they call general-purpose warehouses to individual

Companies okay thanks next one um Isaac Europe you said that establishing a new FTZ has to be fair and not favor one importer over another so what is the political influence if any and is it a local state or federal influence it seems that fairness can be based on a

Political stand absolutely and definitely that fairness comes into play when you’re going through any sort of application or activation process and so it it does have to come essentially at all levels where you get the local support as well as the federal support giving a couple examples the the first

Area where fairness generally comes into plays and then when the grantee establishes their fees you can’t treat two different entities that are essentially performing the same function and the larger umbrella I’ll call it distribution function you can’t charge one a fee that is viewed separately from the other and they’ll

Essentially raise a complaint to the governing agency in this case the Foreign Trade Zone for about the applicability of your fees and the foreign trade zone board actually about two years ago beefed up and specifically hired auditors to go around the country and start auditing fee structures there’s own schedules that different

Grantees have so that’s one aspect of the fairness another aspect for the fairness comes into and the political considerations comes into actually and specific activity going on we have an operator within Foreign Trade Zone 45 that imports plastic and inked and ultimately manufacturers printer cartridges in going through that

Activation process we came to realize that there is a very active lobbying for the domestic ink production industry and so the aspect of fairness on photo scale came into play and it was an extensive public comment period long evaluation by the foreign trade zone board and really

A fairly nuanced discussion as to the economic benefit that would be provided to the local region through the establishment of the foreign trade zone that essentially allowed those inks to be imported and manufactured here versus the impact on a national level to the constituents of the ink Lobby so there

Is that aspect of fairness when it comes to not just a fee structure but also the specific activity taking place and the benefit or burden to the domestic issue that already exists within that so hopefully that answers that question thank you um real quick hey Sean could

You please go back to the screen with the website information there’s a couple people that are yep thanks just leave that on there for a minute so people can jot those down and again folks we will have a PDF of this presentation available and we’ll also have a

Recording of this so if you still miss it or you know whatever we have it available for you okay great thanks next question um can the FTZ zone program be abused or played what are the pitfalls to avoid this I know go ahead Isaac okay I can give an

Example I would say to start that there is a number of protections in place to make sure that the program doesn’t be abused and I can give an example of where that came into play locally we had a inquiry into the establishment of foreign trade zone for a gentlemen who

Are a company that wanted to import tobacco and then roll cigars and essentially they were looking at it once once it was investigated by us as the grantee and with concurrence from the board it essentially was they were looking for a way to circumvent labor protections and restrictions on the

Import of goods from Cuba and that quickly very quickly was flushed out and there was once it was identified there was additional follow-up outside of the foreign trade zones board or the grantee into the legality of that operation so I think that’s an example of how the

Systems functions to make sure it wasn’t abused you know in my perspective on this you know having run in an enterprise zone you know in New York State the Empire Zone program got criticized for photo over but considers of the program I guess you know the Foreign Trade Zone you know isn’t

Fronting any money you know any of the benefits or our deferred revenues at best the you know I think the level of security and scrutiny that customs and border protection protection has in place really preserved the integrity of the program both programmatically and fiscally to the US Treasury you know any

Key operators users have to carry a bond and their bond has to be established for the estimated value figure that is developed by you know Customs and Border Protection for the duties that would be owed so if things are brought into a Foreign Trade Zone and then the

Inventory is wiped out overnight nobody know where it went to you know that that responsibility is still there to to pay to pay the the United States for those duties that were owed you know and I could you know from our perspective here we’ve never run

Into it again I think we the there’s nothing probably more convincing than an armed customs ADA coming into your facility I will walk through that he’ll you’re gonna have some level of compliance Sean our everyone yeah this is the ng I don’t I haven’t had any experience with anybody trying to play

The SEC and if they did I would immediately take their side away from him uh-huh you know you can’t get to that bad reputation with the FTZ border with your community so that’s important to me as the grantee to treat everybody fairly and yeah I haven’t heard of

Anybody playing in fact you know since this webinar is about some about the Trump tariffs also in every one of those sections that Sean was talking about at the beginning 232 201 301 every single one of those additional tariffs I have to in a foreign trade them have to be

Entered in what they call privileged foreign status those products which means that locks in that duty rate and so it’s not like you can avoid those duties by being in a foreign trade zone if you end up sending those to your US customers you’re still going to have to

Pay this those duties period so because there are those safeguards you know now if you react sport out of a zone you don’t have to because it never enters the stream of Commerce yes turn recover but you know if you’re doing just US business you you can’t get around even those

Additional Terra so you know and to build on some of the specificity of the Trade Act actions Angie mentioned earlier one of the benefits or oh one of the actions that an exporter and importer exporter may use as duty drawback and the Foreign Trade Zone Opera is a benefit to avoid paying

Duties and tariffs on those items that are subject to those trade actions and I believe huh on all of them Duty drawback has eliminated as a benefit and so you know we didn’t we probably should hit on that I should have hit on that as to why

The Foreign Trade Zone matters in this environment it’s not good you know as Angie said the privileged privileged foreign status is gonna lock in your duty rate them and he brought it in so those car radios were subject to the trade actions under under those acts of

۶۲ or 74 you know a five and a half percent tariff rate is gonna be locked in but if that car you know is exported then that new rate has never paid if the car is imported then they had the higher duty rates going to apply you know and

On to the you know and back to the abuse and Angie said this that if she wouldn’t let it happen users have to enter in agreements with grantees for use of the foreign trade zone there’s a lot of stipulations in there and and one of those you know and

Generally is that you’ll use his own properly otherwise the granilith the the Foreign Trade Zone status can can be removed there’s provisions you know I know there’s provisions on our agreements with our operator users to terminate the the Foreign Trade Zone designation thank you next question and this is for anyone are

You seeing an increased interest in participating in FTC’s based on the rise of e-commerce and just-in-time customer delivery expectations I’m happy to start with this one and I would definitely say the answer to that is yes a lot of the distribution and warehousing is moving to being much more e-commerce based and

As companies look to essentially ship from their distribution directly to consumers the amount of time and inventory for goods that are being imported goes up slightly at the distribution is my ultimately going to a wholesaler retailer that quickly and with the increased time that it spends in distribution there’s an increased

Potential for duty deferral to president enough of a benefit to establish a foreign trade zone site again using the athletic and outdoor where example locally their distribution site was essentially just a wholesale distribution site and is now evolving to an e-commerce and wholesale distribution site and as part of that the extent of

The foreign trade zone within their distribution area is expanding to include their e-commerce site we’re also seeing here in the northwest and civic Northwest consolidation of the e-commerce distribution sites more companies choosing to serve ecommerce and especially Canada the vancouver alberta calgary markets from a single distribution center and so there’s

Obviously a Foreign Trade Zone due to elimination benefit for the goods that are imported then ultimately re-exported direct-to-consumer ecommerce packages for the Canadian market I would echo that that’s what my zone is I have I have said several times textile think of all the big not all of them that’s a bit

Big big stores you know where you can buy your clothes they’re coming through this zone and they’re supplying stores out of their DCs but they’re also doing e-commerce and in and this is Comus we’re booming like a lot of other communities right now and our customs office is shouldn’t

Probably be saying this a lot is very very concerned about the rate of increase of e-commerce here and it’s and it’s a-you know see if they could keep up with it they’re still tasked with controlling that whether it’s in a zone or not and it’s it’s very very ecommerce

Is huge right now and I would echo the Canadian thing to I’ve had several several companies shut down an expensive Canadian warehouse and and do their e-commerce to the at least the eastern half of Canada from here you can track it right over the border in less than a

Day and put it in the Canadian Postal Service and it’s very very quick and efficient so yeah you okay I think we have time for one more question can you give us examples of operators and users it is hard to tell the difference hmm I only have operator users here so

You know you know my companies that are using it are doing our playing both roles so I’ll defer to others I have all operator users except one and it is a Threepio a third party logistics firm you know the excel is the gin cos the pence keys they run the warehouses for

Everybody that’s what they do so they’ll lease the warehouse and it’ll be their employees but it’s got company a’s products in there or more than multiple company’s products in there in their operation so i have one like that and so the company the 3pl is the operator and the company underneath

Company a is the user so the user is getting the benefit but I’m sure the 3pl is making some money because they’re wearing their red in that warehouse and doing all their FTC stuff so yeah and I just have one example where the operator and user are different and that is

There’s a there’s a company that’s made their business in being the operator for auto imports exports to foreign trade zones along the west coast they’re an operator here in Portland and the user is actually the car manufacturer that’s moving it through them but the operator is responsible for the foreign trade

Zone site at the inventory controls etc and very similar to Angie’s example the operator is doing it given their specialization understanding of foreign trade zones requirements and inventory controls but they’re obviously getting a financial benefit or sharing the financial benefit of the Foreign Trade Zone with the user you

Okay I think we’re going to pause and stop it is 2:30 so thanks to all of you to Sean Isaac and Angie for joining us today and everyone be sure to log your Sam credits they’re all posted ready to go and we’ll have a PDF of the presentation available on our web cast

Web page Ohio planning org slash planning webcast and we’ll have a presentation recording available on our youtube channel just search planning webcast on YouTube alright everyone again thank you so much for joining us today we appreciate it and thanks to the economic development division for hosting today’s session and

Everyone we will talk next time have a great weekend

ID: Lwj–geBkp0
Time: 1539355155
Date: 2018-10-12 18:09:15
Duration: 01:27:51

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