FTZ transferred to Port of Milwaukee

   The Port of Milwaukee has become the grantee status of Foreign Trade Zone No. 41 for Milwaukee and Southeast Wisconsin.
   Eric Reinelt, port director, said the U.S. Commerce Department’s Foreign-Trade Zone Board has approved the transfer of the zone from a private individual, Vincent J. Boever.
   The port now plans to promote the zone as a tool for economic development and creation and retention of jobs in the region.
   Reinelt also said that the FTZ board also approved the reorganization of FTZ 41 under the “Alternative Site Framework (ASF)” which will allow companies within 60 miles or a 90-minute drive from Milwaukee to apply for FTZ status.
   Reinelt said the ASF has reduced the time that it takes a company to get an FTZ approved from a year or more to three or four months.
   Milwaukee Mayor Tom Barrett said “prospective zone users have already contacted the port requesting application information and FTZ designation procedures.”
   Commercial goods that enter a zone are not subject to U.S. Customs tariffs while they are within the zone. If the goods are then exported from the zone, they may be exempt from duty payments altogether. The designation allows foreign and domestic products to be stored, distributed, combined with other products or used in manufacturing while within the zone.
   One of the financial advantages of trade zones is the cash-flow savings from deferring these payments. Another is that companies can choose between the tariff classifications applicable to the components in the product or on the finished product, whichever duty rate is lower.
   While the Port of Milwaukee is not regularly called by container ships, it has a container yard that handles 25,000 to 30,000 containers annually because of daily rail service by the Canadian Pacific Railroad connecting Milwaukee with Vancouver, British Columbia and Montreal.
   Reinelt said Hapag Lloyd offers shipping services to customers out of both Vancouver and Montreal and earlier this year Zim began offering service out of Vancouver.  — Chris Dupin