EXCITING NEWS ABOUT OUR AREA

Washington County On Track For Foreign Trade Zone

April 10, 2008 excerpts from Foster Folly News

Ted Everett, Executive Director of the Washington County Chamber of Commerce announced on April 10th that a Foreign Trade Zone had been authorized by the Port of Panama City that will encompass the Tommy McDonald Industrial Park and the Washington County Industrial Park located just east of downtown Chipley.

The next step for the authorization will come from Washington D.C., but Everett felt sure that would be received.

Everett said individual businesses operating in the parks, or planning to operate in the parks, can apply for Foreign Trade Zone status. The firms would pay for their own applications and the computer software necessary to operate in a Zone.

The City of Chipley and the Washington County Board of County Commissioners both gave $25,000 to support the drive for the Foreign Trade Zone.

The Foreign Trade Zone in Washington County will be a subzone of the Zone at the Port of Panama City.

According to Everett, the Foreign Trade Zone will enable the area to better complete in the global environment.

Outlining the use of Foreign Trade Zones, officials say individual companies face competition from overseas producers and suppliers.  The Zone, which was created in 1934,  is designed to enhance the competitiveness of U.S. -based business operations engaged in international trade.   It helps U.S.-based companies lower trade-related costs (customs duty costs).

Considered a move to level the playing field for U.S. manufacturers, benefits of utilizing a Foreign Trade Zone include the following:

*  Since the U.S. added value is not subject to duty, a manufacturer that adds U.S. content to foreign product at a rate of 51 percent of more may qualify for the "Made in the U.S.A." label, thus avoiding duty altogether.

*  Weekly entry procedures significantly reduce paperwork and expense.

*  Imported merchandise may be stored for an uncertain or prolonged period of time, destined for various locations and my be exhibited for potential buyers.  This allows cash flow and interest expense savings.

*  Quota merchandise may be stored in a Foreign Trade Zone duty-free until the next quota period reopens.

*  In a contract or bonded warehouse, inventory taxes are levied on Jan. 1st of each year on all merchandise.  In a Foreign Trade Zone, foreign merchandise is not taxed and domestic merchandise held for export is not subject to any state or local ad valorem taxes.

Everett said the Foreign Trade Zone is just one of the actions backed by the Washington County Chamber of Commerce to improve the business climate of the county.  He said by having the Foreign Trade Zone designation for the industrial parks, the Chamber is in a better position to attract businesses providing higher paying salaries to the area.