The City is hosting a Foreign Trade Zone Forum at City Hall on Friday, March 17, 8:30 a.m. The event, which is free, will feature local companies that operate as Foreign Trade Zones under the City’s FTZ grant of authority. This includes Lam Research, RK Logistics Group and Tesla. Operating as a Foreign Trade Zone greatly enhances the local operations and global competitiveness of these companies – and frankly more of our local companies should have the Foreign Trade Zone designation for their facilities.
The event is designed to inform the business community about the opportunities to operate their facility as a Foreign Trade Zone or utilize an existing facility to enhance their global competitiveness. The Foreign Trade Zone allows a company to delay, reduce or eliminate Customs duties on imported merchandise that is admitted into the FTZ.
With the current uncertain direction of existing and future trade agreements, the Foreign Trade Zone should most certainly be an option for for a company to provide flexibility for global operations.
The City of San Jose redesignated the Foreign Trade Zone which significantly streamlined the federal application and review/approval process – and made it a viable program for smaller and mid-size businesses. The Service Area of the San Jose Foreign Trade Zone is all of Santa Clara County, Santa Cruz, Scotts Valley, Fremont, Hayward, Newark and Union City, so it is a unique program in that the City of San Jose administers this program beyond our city boundary (per the Foreign Trade Zone Regulations).