Genesee County approved as Foreign-Trade Zone
Submitted by Howard Owens on January 8, 2013 - 11:13am
The Genesee County Economic Development Center (GCEDC) announced today that Genesee County has been approved as a Foreign-Trade Zone (FTZ), the first FTZ in the Finger Lakes Region since a similar zone was created in Monroe County in 1987. An FTZ is a site within the United States designated by the U.S. Department of Commerce where foreign and domestic merchandise is considered to be in international commerce.
“This is a historic day for economic development in Genesee County and a critical component of our broader efforts to sustain job creation and investment in our region,” said Steve Hyde, president and CEO of GCEDC. “The approval of this application for FTZ status will help spur economic growth and foreign investment by incentivizing businesses with customs duty savings and other tax advantages, as well as increased flexibility in the handling of domestic and imported merchandise.”
The application designates two Genesee County industrial parks – Apple Tree Acres and the Genesee Valley Agri-Business Park – as magnet sites, which allows businesses looking to develop at these sites a fast-tracked application process. Other magnet sites can be added later.
Because an FTZ is considered to be “outside” the customs territory of the United States, foreign or domestic merchandise may enter without a formal customs entry, or the payment of customs duties or government excise taxes. When a final product is exported from an FTZ, no U.S. Customs duty or excise tax is levied. If the final product is imported from the FTZ into the United States, customs duty and excise taxes are due only at the time of formal entry into the United States. The duty paid is the lower of that applicable to the product itself or its component parts.
Genesee County’s application, submitted by the Genesee Gateway Local Development Corporation (GGLDC), establishes an FTZ under the program’s Alternative Site Framework (ASF). This framework provides Genesee County’s FTZ greater flexibility as a broad geographic area, as opposed to traditional FTZs, which were building/site-specific.
There are a total of only 14 FTZs currently approved in New York State, four of which are located in or near New York City.