SALT LAKE CITY (News4Utah)- While the tariffs announced by President Trump are impacting local businesses, the Salt Lake City Department of Economic Development is working to help ease the concern.
Ben Kolendar, the Deputy Director of SLC Dept. of Economic Development, reports we are at the beginning of a trade war. The latest round of tariffs includes a provision that could scale the third round of tariffs to 25% and it is likely the escalation will be implemented. But in times of trade wars, Kolendar said companies can get creative to avoid tariffs.
Some of the creative solutions include; overhauling supply chains or deferring or eliminating customs duties taxes. Eliminating custom duties taxes can be done quickly by joining Salt Lake City’s Foreign Trade Zone.
Foreign trade zones work by being a type of customs limbo. Companies that import goods into an FTZ can delay paying duties until the goods leave the zone. If your company is located in the zone, you can take advantage of the benefits. There is no cost to join. The area encompasses a 60-mile coverage area, including most of Northern Utah.
Foreign trade zones aren’t a loophole for avoiding tariffs on products destined for the U.S. market, but they can be a way for companies to avoid duties on goods shipped to the U.S. and subsequently exported.
Contact the Salt Lake City Department of Economic Development if you are interested in looking into joining the Foreign Trade Zone.
For more information visit slc.gov.