Published: August 15, 2009 04:48 pm      

Staying competitive, utilizing foreign trade zones

DUNCAN — Economic development is very competitive. Every day, the Duncan Area Economic Development Foundation (DAEDF) competes against other communities across Oklahoma, the nation and even internationally for companies to look at us as their next location. We also vie to retain companies in our area. To stay competitive, it is necessary to see what other programs, incentives or functions we can offer and add to our “tool chest.” Recently, the DAEDF board decided to pursue the designation of a Foreign Trade Zone (FTZ) to aid in our marketing efforts. Because of the number of companies that are located in Duncan that trade internationally and for companies interested in relocating to our area, having a FTZ subzone in the Duncan vicinity will be very beneficial.

What is a FTZ? The definition of a Foreign Trade Zone is an area considered outside of the U.S. Customs territory in which duties on merchandise can be deferred, reduced or, in some cases, eliminated. A Foreign Trade Zone is an area where domestic and foreign merchandise is brought for the purpose of storage, manufacturing, assembly, salvage, repackaging, repair, re-export, transfer shipping, exhibiting goods and other operations (www.foreigntradezone106.org).

According to the National Association of Foreign Trade Zones (NAFTZ), the Foreign Trade Zone program has promoted American competitiveness by encouraging companies to keep and expand their business domestically. FTZs are one of the best pro-manufacturing job programs available in the United States. By eliminating “disincentives” to manufacture in the United States, FTZs help level the playing field and encourage companies to establish or keep their operations in the United States.