Business, Freight News, Sea

JAXPORT’s Foreign Trade Zone continues to grow

[ May 22, 2020   //   ]

The Jacksonville Port Authority’s (JAXPORT’s) Foreign Trade Zone No. 64, Florida’s largest FTZ by area, continues to grow as businesses adjust to supply chain changes during COVID-19. The FTZ’s expansion is due in large part to fast application turnaround times by U.S. Customs and Border Protection – Port of Jacksonville and the FTZ Board in Washington, D.C.

An FTZ is a secured site within the United States, but technically considered outside of U.S. Customs’ jurisdiction, allowing shippers to delay paying Customs duties until cargo leaves the FTZ. Users also can reduce import fees outright through more efficient filings.

JAXPORT’s newest FTZ user, Jacksonville-based transportation services provider Shoreside Logistics, received full regulatory approval to join FTZ No. 64 in less than two weeks from their application date.

“We are grateful for the hard work and diligence of our federal partners, including our local Customs office and the FTZ Board,” said JAXPORT FTZ Manager Deborah Lofberg. “With their support, FTZ applications continue to be processed seamlessly, allowing new and existing users to take advantage of FTZ benefits very quickly.”

Existing FTZ user Tapestry, Inc., parent company of global accessory design house Coach Inc., recently expanded its FTZ No. 64 usage, activating an additional 35,000 sq. ft. of its existing Jacksonville distribution space.

“You can’t stop a large supply chain on a dime, so the fast application turnaround time was critical for us,” said Tapestry’s North American Senior Director of Global Trade and Customs Jason Nichols. “We needed extra space to store product, while also minimizing costs such as duties and demurrage. Getting additional FTZ space activated at an existing off-site location gave us a lot more flexibility in addressing the situation at a time when every penny counts.”

To help Northeast Florida businesses better manage cash flow during this time, JAXPORT is currently deferring the application fee for all new Foreign Trade Zone No. 64 applications received by July 31, 2020.

New FTZ customers can defer the one-time $2,500 application fee for 90 days from their application date, and take advantage of the substantial savings, including import duty deferral, reduction, or elimination, that a foreign trade zone offers.