You may have seen duty free zones in bordering countries and airports, but what about foreign trade zones?
A duty free zone is an area where you can get things for a cheaper price because duties are not charged on items. A foreign trade zone is the same concept, but for businesses.
Ben Kolendar from the Salt Lake City Department of Economic Development joined Good Morning Utah to talk about why FTZ is a smart business strategy.
Kolendar said it’s a great federal incentive program for businesses who import over a million dollar in imports.
“Essentially you’ll save on the import tax duties by joining a foreign trade zone,” he said.
Where is Salt Lake’s FTZ?
Across the U.S. there are 276 authorized foreign trade zones. Salt Lake City’s FTZ #30 is in a prime transport location at 1105 S. 4800 W. on 55 acres adjacent to the Union Pacific Intermodal Terminal and close to Salt Lake International Airport.
Businesses located within a 60 mile radius, or 90 minute drive, from the FTZ can take advantage of it.
“Surprisingly, more than 90% of Salt Lake City’s business owners are not aware of the FTZ and money it can save them,” Kolendar said.
He said Red Wing Shoe Company has joined the FTZ. Their shoes go to 110 companies around the world, and since joining the FTZ they have seen significant savings on duty fees.
“They’re using the savings to possibly expand and bring more employees in…When companies save money it benefits the local economy. We’re hoping more companies will follow their lead,” he said.
For more information about Salt Lake City’s Foreign Trade Zone and how your business can be a part of it , click here.