California port establishes FTZ

Tenth Avenue Marine Terminal The Port of San Diego's Tenth Avenue Marine Terminal is now a a Foreign-Trade Zone. Photo: Port of San Diego

One port in California has established a Foreign-Trade Zone (FTZ) to enable cost savings for customers.

As an FTZ, the 96-acre Tenth Avenue Marine Terminal (TAMT) at Port of San Diego in California is a secured, designated location where foreign and domestic merchandise is generally considered to be in international commerce and outside of US customs territory.

“The Port is a conscientious innovator that leverages our unique expertise, forward-thinking solutions and relationships to expand opportunities for businesses. By becoming a Foreign-Trade Zone, we are enhancing our capabilities and become more appealing to potential customers,” said Ann Moore, chair of the Port of San Diego Board of Port Commissioners.

Multiple benefits

By operating TAMT as an FTZ, the port offers numerous benefits to businesses including duty reduction and deferral, logistical benefits, and cost savings. Shippers and businesses will have a secure area with reduced or eliminated duties on imported and exported cargo in the form of duty deferral, which allows for cash flow savings until cargo is imported and exported to and from the US.

Companies will receive reductions in merchandise processing fees due to single customs “entry” per week (pay one fee) rather than making multiple entries throughout the week. In addition, original equipment manufacturers will have the option to assemble various components of a project, creating US products, and can obtain additional cost savings as a duty drawback.

TAMT has four working berths and specialises in break-bulk, refrigerated, and dry bulk cargo.

A number of US port authorities have previously established FTZs, including Port of Houston Authority, Port Authority of New York and New Jersey and Jacksonville Port Authority, Ports of Indiana, and South Carolina State Ports Authority.


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