As Economic Development Project Manager at the Port of Vancouver USA, I have a unique perspective on all the different kinds of benefits companies reap from working with our port. That includes Foreign-Trade Zone (FTZ) #296
, managed by the Port of Vancouver USA.
While many companies know that FTZs exist, I often find there are critical gaps in knowledge about how FTZs work, and what are the full advantages of using them. This extends to FTZ #296: many companies that operate in Clark County, Washington – home of the Port of Vancouver USA – have not had the opportunity to explore how they can leverage this FTZ to grow and enhance their business.
So, here is what you need to know about FTZs, and how we can help you access the Port of Vancouver USA’s FTZ #296.
What are the benefits of foreign-trade zones?
Foreign-trade zones are designated areas in which special customs procedures can be used for goods that are imported into the United States. They are typically located near ports of entry, like the Port of Vancouver USA.
FTZs benefit companies by (1) eliminating, reducing or delaying tariffs and other costs and (2) streamlining customs procedures. These benefits encourage companies to stay in the U.S. and reduce overhead while remaining competitive in the global market.
If a company imports components to be used in manufacturing at an FTZ, then re-exports the finished product outside the U.S., it can become exempt from paying tariffs altogether. If a company imports goods to sell in the U.S. market, it can have duty payments deferred on those imports. And if a company imports materials for manufacturing at an FTZ before selling within the U.S. market, it can become eligible to pay a reduced tariff for the finished product alone – rather than for the initial imported materials, which often have higher tariffs.
All FTZs are licensed by the Foreign-Trade Zones Board, which is comprised of the U.S. Secretary of Commerce and the Secretary of Treasury. U.S. Customs and Border Protection (CBP) officials play a key role in approving and overseeing activity at each FTZ.
The positive impacts of FTZ #296
The Port of Vancouver USA is the grantee for FTZ #296, which was established in 2016 and activated in 2022. Our FTZ covers not just the port itself, but all of Clark County. This is an important point I’ll return to later.
Thus far, multiple companies in the wind energy manufacturing sector have used our FTZ to run their components through the Port of Vancouver USA. It also helps that we have the bulk handling capabilities and transport infrastructure to process large wind blades and turbines, which many other ports are not able to do.
Put together, it’s no coincidence that the Port of Vancouver USA is the largest wind importer on the U.S. West Coast. It means we have a huge impact on expanding the use of clean energy in North America.
The influx of imported goods through our FTZ also has positive impacts for the local economy and employment beyond the port. For example, it creates opportunities for mechanics who service trucks that transport cargo, while bringing additional business to local restaurants and hotels as employees come to the area to work on a project.
Last but not least, FTZ #296 offers a wealth of potential to seriously boost local manufacturing in our region. Allow me to explain.
Creating opportunities across Clark County
As the manager of FTZ #296, the Port of Vancouver USA can work with companies to create subzones throughout Clark County – not just within the port itself. That includes the cities of Vancouver, Camas, Washougal, Ridgefield, La Center and Battle Ground.
FTZ subzones are highly customizable. They can be as small as one square meter in a factory, for instance. So, if your company already conducts manufacturing operations anywhere in the county, or is planning to invest in the region, you can apply to become part of FTZ #296.
For those with industrial operations located at the Port of Vancouver USA and across the wider county: consider FTZ #296 as an untapped resource that can expedite time-consuming customs processes and alleviate major costs for your company. Whether it’s reduced or exempted tariffs, or even delayed tariffs, FTZs provide a key benefit for businesses with a global footprint, while strengthening local jobs and economic growth.
The Port of Vancouver USA: Ready to help
Companies are often intimidated by the application process to join an FTZ, assuming it will be too complicated to be worth the trouble. In reality, applying to join FTZ #296 is a straightforward process, and one that our team at the Port of Vancouver USA is happy to help you walk through.
And once you’ve joined our FTZ, we can also connect with the appropriate authorities and resources to navigate customs-related processes and issues as they arise.
If you’re interested in becoming part of the Port of Vancouver USA’s FTZ, our door is always open. Comment below or reach me at jhagar@portvanusa.com.
