We are pleased to announce that we have entered Salt Lake City’s Foreign-Trade Zone (FTZ) to the Alternative Site Framework (ASF). The benefits provided by this new framework will be accessible to any company within a 60-mile radius of the current FTZ located near the Salt Lake City International Airport. This area encompasses all of Salt Lake, Utah, Davis, Weber and Morgan Counties as well as parts of Box Elder, Summit, and Tooele Counties.
This ASF allows companies (existing or new) located within the service area (mentioned above) to secure Foreign-Trade Zone status for warehousing and distribution operations within approximately 30 days from the time an application is accepted for filing. The previous model took up to a year (for certain uses, applications may still take that long).
“This change makes Salt Lake City and most of Northern Utah even more competitive for international businesses. A company that joins a FTZ can save money on their import duties, streamline their processes, and grow their customer base,” says Ben Kolendar, deputy director for Salt Lake City’s Department of Economic Development.
This new framework assigned to SLC’s Foreign-Trade Zone #30 was made possible by a collective effort with our partners at World Trade Center Utah, Economic Development Corporation of Utah, and the Governor’s Office of Economic Development.
The money savings can be significant — up to hundreds of thousands of dollars by deferring or even eliminating having to pay those taxes. How? Foreign trade zones work by being a type of “customs limbo”. A firm can import goods or components into a FTZ without paying duties at that time. It can then warehouse, assemble, manufacture, package, test, grade, clean, mix, process, and exhibit merchandise in the FTZ. Duties are paid only when goods are shipped from the FTZ to U.S. destinations. Generally, no duty is payable on goods or products scrapped, transferred to another zone, or exported. Depending upon the nature of the operation taking place, tenants may eliminate, reduce, or defer payment of customs duties.
How much money could your company save? Use this FTZ Savings Calculator hosted by the Rockefeller Group that can provide a general, high-level assessment of potential FTZ savings. It is recommended for participants to import at least $1-million in goods to offset the price associated with joining a FTZ. There is no cost to join and now with the ASF it is much quicker — you may now be able to complete the process in as little as 30 days.
Locating or expanding your company’s operations into a Foreign-Trade Zone is a smart business strategy. When operating from a FTZ, your company gains a distinct competitive advantage by receiving cost reductions in customs duties and fees, a strategic location, and supporting services.
For questions about Salt Lake City’s Foreign-Trade Zone, or how to join, please contact Ben Kolendar, Deputy Director, Department of Economic Development at 385-272-1475 or Peter Makowski, Business Recruitment & Retention Manager, Department of Economic Development at 801-573-1760.