NTX Magazine Volume 4 - Page 20

INDUSTRY SPOTLIGHT Aviation According to the Foreign-Trade Zone Board, foreign and domestic merchandise may -- subject to certain regulations -- be moved into zones for operations such as storage, exhibition, manipulation and manufacturing. The board’s regulations require a caseby-case review for all manufacturing activity to be conducted in FTZs. Under zone procedures, the formal customs entry procedure and payment of duties are not required on foreign merchandise unless customs entry is for purposes of domestic consumption. For foreign merchandise that undergoes further processing in a zone before customs entry, the importer ordinarily has a choice of paying duties on the original foreign materials or on the resulting finished product. Domestic goods moved into a zone for export can be considered exported upon entering the zone for purposes of excise tax rebates and drawback. This flexibility and scope can mean big bottom-line differences for businesses in North Texas, said Methenitis. “With eight counties total [in the FTZ], you’re talking about well over 1,000 square miles. It’s a gigantic geographic profile. So any business is quickly able to access the benefits and have a very low up-front cost. In terms of up-front cost and timing, it doesn’t get any better than it is in the DFW Metroplex,” he said. 18 www.ntc-dfw.org Winter/Spring 2015 Left: Dubai Airport Freezone ceremony with His Highness Sheik Ahmed bin Saeed Al Maktoum, chairman of Dubai Airport Freezone, and Dallas Mayor Mike Rawlings at the signing ceremony in March of 2012. RIGHT: Farglory trade signing event at DFW, featuring Chao Teng-Hsiung, Chairman of the Farglory Group, who signed the agreement. Many foreign-trade zones have included sites at seaports or airports as well as industrial parks, with the intent of attracting companies to the zone. Increasing numbers of zones are now opting to use the “Alternative Site Framework” made available by the board beginning in December 2008, which enables a much quicker, simpler on-demand process to designate “subzones” or “usage-driven sites” at specific companies’ facilities. “Business has continued to double year after year since 2000,” Wilkins said. “Prior to that, you had to manufacture something to be part of the program. Now, with the President’s National Export Initiative, com