Transcript INzone: Greater Indianapolis Foreign Trade Zone

How Developers can Differentiate Themselves…
especially as it relates to improving the Supply Chain & TDL
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
Full Service Approach
Land Positions/Multiple Sub-markets
CCS – Complete Customer Satisfaction
Critical Mass of Product
Master-Planned Business Parks
Architectural Standards & Park Consistency (CC&R)
Local Expertise & Local Relationships
Financial Stability & Corporate Strategies
Value Added Amenities/Services
Park 100 Advancement Center
Foreign-Trade Zone Status (FTZ)
Foreign-Trade Zones Top 15 State Rankings
Volume of Foreign-Trade Zone Merchandise
STATE
Texas
Louisiana
Ohio
Tennessee
California
New Jersey
Kentucky
Indiana
Pennsylvania
Illinois
Washington
South Carolina
Puerto Rico
Alabama
Mississippi
Michigan
ANNUAL VOLUME
$68,130,000,000
$41,670,000,000
$14,850,000,000
$14,190,000,000
$12,580,000,000
$11,090,000,000
$9,570,000,000
$8,760,000,000
$8,700,000,000
$8,660,000,000
$7,030,000,000
$4,990,000,000
$4,350,000,000
$4,000,000,000
$3,370,000,000
$2,690,000,000
Volume of Exports from Foreign-Trade Zones
STATE
Texas
South Carolina
Ohio
Alabama
Tennessee
Florida
Mississippi
Louisiana
Arizona
Alaska
California
Indiana
Puerto Rico
Hawaii
Georgia
Illinois
ANNUAL VOLUME
$3,520,000,000
$2,980,000,000
$2,780,000,000
$1,750,000,000
$1,420,000,000
$860,000,000
$690,000,000
$640,000,000
$590,000,000
$550,000,000
$530,000,000
$520,000,000
$360,000,000
$360,000,000
$350,000,000
$340,000,000
Foreign-Trade Zone Employment
STATE
Texas
Ohio
Illinois
Louisiana
Kentucky
Tennessee
Indiana
Arizona
California
Mississippi
Puerto Rico
New Jersey
Florida
South Carolina
Pennsylvania
Alabama
ANNUAL VOLUME
71,007
29,803
29,726
27,175
18,125
16,829
16,038
13,857
11,576
10,415
9,612
9,496
9,060
6,526
6,336
5,890
Number of Firms Engaged in Foreign-Trade
Zone Activites
STATE
Texas
Puerto Rico
New Jersey
California
Hawaii
Florida
New York
Louisiana
Maryland
Nevada
Illinois
Ohio
Georgia
Minnesota
Indiana
Washington
ANNUAL VOLUME
377
344
329
318
303
264
98
86
85
79
63
57
50
44
30
29
INzone: Greater Indianapolis
Foreign Trade Zone
What are FTZ’s and Why are They Important?
Presented by: Kent Ebbing
General Manager
Worldwide Import/Export Terminology
•
Free Trade Zones: Allows products to enter a designated area for
storage, etc… and then exported or cleared to enter the host
country…such as Hong Kong; Colon, Panama; Shannon, Ireland; and
Switzerland.
•
Export Processing Zones: Allows merchandise to enter an area for
processing in some manner and then be exported… such as Bataan,
Philippines; Manaus, Brazil; and Kaoshiung, Taiwan.
•
Enterprise Zones: Encourages new industrial and commercial activity
in urban blight areas by removing most zoning, taxation, and Federal &
local business regulations from carefully defined districts.
•
Duty-Free Shops: Retail stores, located at ports of entry, that allow
the purchase of tax free merchandise leaving the host country.
What is a U.S. Foreign Trade Zone?
 Secured building, warehouse, pipeline, etc... specifically
designated to utilize the program’s benefits.
 Program users are located at a Port of Entry for U.S. Customs
audit control.
 FTZ Program must financially benefit the community it serves.
 Subject to local community endorsement and Federal trade
policy review. Must conform to all local, state, and Federal
agencies’ policies.
Indiana’s Seven
Grantee Subzone
Territories…
FTZ #72 - Indianapolis Airport Authority
FTZ #125 - St. Joseph County Airport
Authority
FTZ #152 - Burns Harbor – IPC
FTZ #170 - Clarke Maritime Centre – IPC
FTZ #177 - Southwind Maritime Centre – IPC
FTZ #182 - City of Fort Wayne
FTZ #239 - Terre Haute Airport Authority
1) Who is using the FTZ program
locally?
2) Where and who could use the
program?
3) What are subzones, GPZ’s, operators,
and users?
INzone Customer - Option #1
Subzone
 Manufacturing or distribution operation.
 Private site anywhere within defined Central Indiana.
 Importer of large volumes or high tariff products.
 Generally takes 9-12 months for government approval.
 Interested company seeks support from local Grantee.
INzone Existing Subzones








Designated
General Motors (A)
Eli Lilly (B, C & D)
Chrysler (E, F & G)
Subaru (H)
Alpine (I)
Endress + Hauser (J)
Onkyo (K)
Thomson Inc. (L)






Designated
Fujitsu Ten (M)
Alfa Laval (N)
Tetra Pak (O)
SMC (P)
Rolls Royce (Q)
Decatur Mold (R)
Thomson Inc.’s distribution “subzone” site on South Girls
School Road prior to modification and new exterior paint.
INzone - Customer Option #2
General Purpose Zone
 Public warehouse at Indianapolis International Airport (8,878
square feet of warehouse and 798 square feet of office).
 Duke Properties/City of Anderson: Acres of private business
park sites located at: Park Fletcher, Park 100, Plainfield
Business Park and the City of Anderson.
 Enjoys the vast majority of all FTZ benefits almost
immediately upon activation.
INzone GPZ Operator Sites
(1,632.43 combined private acres)
Indianapolis – Private
3 sites – 4 owners
 Park 100 (676.14)
 Park Fletcher (153.51)
 Plainfield Business Park
(182.3)
Indianapolis - Public
 International Airport
(5,500 acres)
Anderson – Private
6 sites – 10 owners
 Business Center
(620.48)
Duke’s Buildings in FTZ’s
PARK FLETCHER BUSINESS PARK BUILDING 34
PLAINFIELD BUSINESS PARK BUILDING 2
PARK 100 BUSINESS PARK BUILDING 71
FTZ #72 General Purpose Zone (GPZ)
Customers Have Been…
Customer
Industry
Throughput Value
Alpine
Brylane
Creative Learning
Delphi
International Resources
Insight Logistics
New Phase
PWT
Wabash National
Total:
Electronics
Textiles
Technology
Automotive
Electronics
Spirits
Wine
Automotive
Transportation
108,060
31,032
5,000
13,158,660
37,319
40,295
22,074
238,297
51,494
$13,692,231
What can you do in a FTZ?
• Store items tax free.
• Test items prior to purchase.
• Clean and/or inspect
products.
• Repair, process, repackage,
or re-label materials.
• Display or destroy items.
• Manipulate items.
• Manufacture (subzones only
or with special permission
within a GPZ).
How Does a Company Save $$$?










Weekly entry (1 weekly MPF fee).
Direct delivery (to your door “in bond”).
Improved logistics & shortened supply chain.
Defer, reduce, or eliminate your import duties.
Add value, duty free.
Inverted duty rate.
Marking & labeling inspection/correction.
Insurance savings (20% - 30%).
Reduce waste expense.
Quick release/hold on quotas.
National Growth of Foreign Trade Zones
3000
2500
2,796
2000
Grantees
Subzones
Companies
1500
1000
500
10
3
0
1970
3
250
538
2004
INzone Subzone’s Throughput Value
$4,000,000,000
$3,500,000,000
$3,000,000,000
$2,500,000,000
$2,000,000,000
$1,500,000,000
$1,000,000,000
$500,000,000
$-
Subzones
Employment at FTZ’s processing a
combined value of 245 billion dollars…
 Nationwide – 338,225
 Indiana – 16,038
 INzone – 7,549
Duke’s FTZ Status In
the News…