Nogales Foreign Trade Zone 60’s Vast Expansion Allows US Firms to Enjoy FTZ Trade Benefits Throughout Santa Cruz County, AZ

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The Nogales Santa Cruz County Economic Development Foundation, the grantee of Foreign Trade Zone (FTZ) 60, filed and received authorization to reorganize the FTZ 60 to include all of Santa Cruz County. The Greater Nogales Santa Cruz County Port Authority expects the expansion of the service area of Nogales FTZ 60 will lead to an increase in trade-related activity in Santa Cruz County through the Mariposa Land Port.

The Nogales Santa Cruz County Economic Development Foundation (EDF), the grantee of Foreign Trade Zone 60, filed and received authorization to reorganize the Nogales Foreign Trade Zone (FTZ) 60 to include all of Santa Cruz County in July. The expansion will offer the job growth and capital investment benefits of this successful trade program to the entire county. Now, US firms and distribution operations can apply for activation anywhere in the 1,238 mi2 of Santa Cruz County.

Companies operating in the Nogales Foreign Trade Zone 60 enjoy expedited international trade benefits, including tariff advantages, increased flexibility and reduced paperwork. These benefits increase global competitiveness and help companies create jobs in the United States.

Robert C. (Kip) Martin, an attorney and board member of the EDF responsible for the reorganization noted, “We are excited at the economic opportunities offered to all of Santa Cruz County with the conversion to the Alternative Site Format (ASF) for Foreign Trade Zone 60. This allows EDF to petition for the activation of an unlimited number of sites up to a standard cumulative 2,000-acre activation limit. The benefits of operating within a FTZ will enable job creation in Santa Cruz County and increase the competitiveness of the growing international trade industry in our region. The expanded FTZ will further the growth of our emerging “logistics cluster” and enable us to capitalize on the increase of the nearshoring maquila trends in Mexico. The conversion to the ASF Format will allow potential operators increased speed and flexibility and cost-savings in applying for activation of an FTZ operation.”

Two companies currently operate within the Nogales Foreign Trade Zone 60, and a third business has been negotiating with the EDF to operate soon. The recent 75th Annual Trade Zones Board report to Congress shows the two companies have 26-30 employees in the original trade zone, with exports of $100M-$250M in 2013.

Bruce Bracker, Chairman of the Greater Nogales Santa Cruz County Port Authority commented on the expansion of Nogales FTZ 60, “We expect that the expansion of the service area of our Nogales FTZ 60 will lead to an increase in activity in Santa Cruz County through the Mariposa Land Port. The total U.S. foreign trade zone exports have grown significantly over the past ten years. The value of shipments into all US foreign trade zones was $835B in 2013, an increase from the $100 Billion total in 1993 according to the 2013 Foreign Trade Zone Board Report to Congress. Additionally, we believe the expanded use and flexibility of the Nogales FTZ will better accommodate those using the Mariposa Land Port, the state-of-the-art ’Port of the Future’.”

A foreign trade zone provides users the opportunity to lower costs and boost profits or alter them in an environment that offers tax flexibility. For example, companies using FTZs to manipulate, assemble and package their products can either pay duties on foreign components or on final products, whichever is less expensive. This, and other advantages, such as reduced paperwork, translates to lower costs and higher profits for companies that create jobs in the United States. Benefits of foreign trade zones include: Improved cash flow, logistical flexibility, duty reduction, lower taxes, weekly entry, duty exemption on re-exports, relief from inverted tariffs, duty elimination on waste and scrap, duty deferral which frees capital, no duty on domestic content or value added, and relief from local ad valorem taxes.

About The Greater Nogales Santa Cruz County Port Authority:
Founded in December 2004, the Greater Nogales Santa Cruz County Port Authority (GNSCCPA) brings key stakeholders from Ambos Nogales together to address issues that impact Nogales’ ports of entry. Working with local, state, federal and international partners, the GNSCCPA strives to improve Arizona’s largest port facilities, streamline the crossing process at the Nogales ports of entry, and enhance economic development in the Nogales-Santa Cruz County region. For more information, please visit http://nogalesport.org/

About The Nogales U.S. Customs Brokers Association:
The Nogales U.S Customs Brokers Association is comprised of 16 U.S. Customs Brokerage firms assisting importers and exporters in meeting Federal requirements governing imports and exports to and from the United States. Brokers work closely with U.S. Customs and Border Protection, the U.S. Food and Drug Administration and the U.S. Department of Agriculture in the handling of entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for the imported merchandise of their perspective clients. The NCBA is very involved in the community, supporting numerous non-profit groups and organizations. It also champions trade and industry organizations supporting the region.

About The Nogales Santa Cruz County Economic Development Foundation:
The Nogales Santa Cruz County Economic Development Foundation (EDF) works to strengthen trade and economic development in the Ambos/Nogales region The EDF assists firms operating in or interested in operating in Santa Cruz County and serves as a conduit for disseminating bi-national information of interest to business. The EDF is also the grantee of FTZ 60, Nogales’ Foreign Trade Zone, which has Santa Cruz County, Arizona as a service area. EDF works with interested operators to provide the benefits of the federal Foreign Trade Zone program to companies interested in locating in the region.

Media Contact:
Sandra Kay Helsel, Ph.D.
858.752.1212
skhelsel(at)skhelsel(dot)

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