The Salt Lake City Corporation is pleased to announce it has entered its Foreign-Trade Zone to the Alternative Site Framework.
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.
"Thanks to Salt Lake City and Mayor Biskupski for driving this important issue. The ability for Utah companies to take advantage of a foreign-trade zone will enhance their competitiveness and profitability,” says Derek Miller, president and CEO of World Trade Center Utah. “That equates to increased international business and a stronger economy for Utah."
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.
"Expanding Utah's presence in a global economy is smart business," reiterates Val Hale, executive director of GOED. "Salt Lake's partnership will greatly benefit the state of Utah, especially northern Utah businesses. This opportunity will help diversify and strengthen our economy."
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. Accordingly, depending upon the nature of the operation taking place, tenants may eliminate, reduce or defer payment of customs duties. It is recommended for participants to import at least $1-million in goods to offset the price associated with joining a FTZ.
“This modification to the Salt Lake Foreign-Trade Zone by Salt Lake City is an important enhancement to the business environment for the entire northern Utah region,” says Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “Traded-sector businesses will benefit from this designation. We thank Salt Lake City for its partnership with the statewide economic development organizations to enhance Utah’s business offering. This is team Utah at its best!”
Peter Makowski, Business Recruitment & Retention Manager, Department of Economic Development