Transcript Training - New Mexico

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El Paso’s
Foreign-Trade Zone
© 2006 By Default!
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Basics on Foreign-Trade Zones
What is a Foreign-Trade Zone?
 A secure area located in or near a Port of Entry, legally outside
the U.S. Customs territory, where foreign and domestic goods can
be brought for storage, manipulation, manufacturing and/ or
distribution, without a formal Customs entry or payment of Customs
duties or excise taxes.
Types of Zones
 General-Purpose: Used mostly for distribution and manipulation
activities
 Subzone: Used where assembly, manufacturing, and refinery
cannot be accommodated in a GP zone
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Company Benefits
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Duty Deferral
Duty Elimination
Duty Reduction (Inverted Tariff
Relief)
Avoid Customs Fines & Seizures
No Duty on Waste
Reduced Bond and Brokerage
Costs
Eliminate Drawbacks
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 Weekly Entries & Weekly
Exports
 Multi port exit for WEx
 Lower Administrative Costs
 Improved Inventory Control
 Informed Customs Officers
 Avoid Inventory Taxes
 US Quotas
 Electronic 214
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Public Benefits
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Help facilitate & expedite international trade and encourage
exports.
Provide Customs procedures not available in the normal
import/export environment to improve operational efficiency.
Help attract offshore activity & encourage retention of domestic
activity.
Assist state/local economic development efforts.
Help create and/or retain employment opportunities.
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What can you do in a Foreign-Trade Zone?
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Assemble
Destroy
Exhibit
Repair
Repackage
Store
Test
Inspect
Manufacture
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FTZ Authority & Structure
Foreign-Trade Zone
Act of 1934
Foreign-Trade Zones
Board
Dept. of Commerce
(15 CFR Part 400)
US Customs &
Border Protection
Dept. of Homeland
Security
(19 CFR Part 146)
City of El Paso
(Grantee)
EPIA/ FTZ No. 68
(GP Operator)
FTZ User
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FTZ User
FTZ User
FTZ User
FTZ User
FTZ Manufacturing
Operator
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Where is FTZ No. 68 in
El Paso?
•Located at major
industrial parks with
access to railroad,
an international
airport with an air
cargo complex and
the federal interstate
highway system
• Utilized by more
than 70 firms in the
region
• the largest FTZ on
the US/México
border
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Site 1 Butterfield Trail Industrial Park
& Air Cargo/BF Park II
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Site 2 Lower Valley
Americas, Pan American, PSB, Ysleta, 5 Star
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Site 3 East
East 10, Saab, Vista Del Sol, 5 Star
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Site 4, Central
Copperfield Industrial Park
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Site 5 Northeast
WFF Industrial
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Current FTZ Companies
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Robert Bosch Corp.
BRK Brands
Electrolux
Foster Electric
Futaba Corp.
Hartec Inc.
Inabata America
Kintetsu World Express
Morrison Express
Pedraza Customhouse Brokers
ProTrans International Inc.
Scientific-Atlanta, Inc.
Seton Co.
Shure Brothers, Inc.
Span American Austin, Inc.
Trans-Expedite, Inc.
TMX Logistics, Inc.
UPS Supply Chain Solutions
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FTZ No. 68 has seven FTZ Public Warehouses:
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Handle goods for importers/exporters
Provide value-added services such as quality control, customs
brokerage, freight forwarding, inventory control, logistics management
Combined these facilities have over 121,830 square feet of public FTZ
space and total warehouse space of 640,290 square feet
Kintetsu World Express
Morrison Express
Pedraza Customhouse Brokers
ProTrans International, Inc.
Span America Austin Inc.
Trans-Expedite, Inc.
UPS Supply Chain Solutions
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International Trade Processing Center
• Located at the EPIA Air Cargo Complex, 501 George Perry, Suite
I, El Paso, TX 79906
• Houses both FTZ No. 68 and US Customs & Border Protection
• It’s a One Stop International Trade Hub, the 1st of its kind on the
US-Mexico Border
• Accessible to multi-modal facilities
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International Trade Processing Center
US Customs & Border Protection on-site
services:
• Staffed by CBP officers and 2 supervisors daily.
• Clear all In bond shipments from airport jurisdiction,
which includes transshipments from other ports via
truck, air or rail.
• Services includes air freight, General Order, bonded
warehouse, and Foreign-Trade Zones.
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International Trade Processing Center
Foreign-Trade Zone No. 68 services:
• Regulatory Compliance
• Inventory Control & Recordkeeping
• Auditing
• Annual Reporting
• FTZ Training
• Operations & Supervisory seminars
• E-214
• Zone Management
• Applications to the US Foreign-Trade
Zones Board
• Sites, Tariff Schedule
• Governmental liaison
• Mitigation
• Coordination w/ federal agencies
• Zone Development
• New User & Manufacturing activation
• Regional coordination
• Marketing
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Member, National Association of
Foreign-Trade Zones
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Slide 19
Facts on FTZ No. 68
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5 major sites containing 3,443 acres of designated land
Largest in volume general-purpose zone along the US-Mexico border
More than 800 persons directly employed in El Paso
Open zone allows more flexibility to trade allowing faster set up.
Used by over 70 international companies in the region
“Best Practices” approach for performance:
 Dollar Volume,
 Retained/created jobs,
 Innovation: Full-service, open zone, pilot projects
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Jose Quiñonez, Jr.
Foreign-Trade Zone Manager
Foreign-Trade Zone No. 68
International Trade Processing Center
501 George Perry, suite i.
El Paso, TX 79906
Tel. (915) 771-6016, Fax (915) 772-2491
E-mail: [email protected]
Website: www/elpasotexas.gov/ftz/
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