GCEDC pushes onward to establish county as foreign-trade zone

If all goes well, Genesee County could become a foreign-trade zone by year’s end.

That would be a boon for some local companies, including those looking to grow their business in international markets because it evens the playing field with foreign competitors, according to proponents.

The Genesee County Economic Development Center Board has approved a request to take the initial steps to establish a foreign-trade zone (FTZ) here.

Although this has been in the works for some time, new federal rules have made it easier to move forward, according to Chris Suozzi, vice president of business development at GCEDC.

The application process takes about eight months and it’s quite extensive. Applicants are screened by the Foreign Trade Zones Board of the U.S. Department of Commerce.

"The whole county can be deemed a foreign-trade zone, instead of targeted areas of the past,” he said. “We would act as a public utility. There are fees associated with this for filings, attorney fees, application fees, etc. Those numbers aren't known yet. That will be part of the application process.

"Each (business) applicant has to be able to recoup those costs – realize at least $10,000 in savings – to justify participation.”

A business would have to do its own due diligence to determine if the math works in its favor, Suozzi said.

There are several economic advantages of a FTZ, including reduced customs, deferral or avoidance of duties and federal excise taxes, tariff inversions, weekly customs entry and reduced value on scrap, waste and obsolete products.

Participants are able therefore to reduce the costs of doing business in the United States – distribution, manufacturing as well as non-manufacturing activities – thereby reducing the attraction or need to do business at a foreign site. Companies also have an opportunity to grow sales through increased exports.

The GCEDC maintains that not only will existing companies stand to benefit from a FTZ, but it will serve as an incentive to attract other companies. GCEDC officials are exploring the possibility of expanding the trade area to the entrie GLOW region, which includes also includes Livingston, Orleans and Wyoming counties.

"A lot of U.S. companies can grow their sales internationally, instead of maintaining the status quo, they can grow both by retention and the attraction of new businesses,” Suozzi said.

Liberty Pumps is an example of one local manufacturer that is keen on establishing a FTZ. Suozzi said he would like to meet with any business interested in learning more about foreign-trade zones.

"We’ll set up a meeting and walk you through it,” Suozzi said. He can be reached at (585) 343-4866, ext. 11, or e-mail to csuozzi@gcedc.com.