THE MARINE INDUSTRY’S NEW FOREIGN TRADE ZONE
The Marine Industry Association of South Florida (MIASF) has won approval from the Foreign Trade Zone (FTZ) Board and Fort Lauderdale’s FTZ No. 241, to create the first ever foreign trade subzone for the pleasure vessel industry in the United States. FTZ restricted-access sites are shielded from the immediate imposition of duties by U.S. Customs, and are empowered to defer, reduce, or eliminate them on foreign products. The facilities and companies approved will be considered to be outside of U.S. Customs territory, and can defer, reduce, or eliminate Customs duties on foreign products.
The Foreign Trade Zone label will allow individuals and marine industry companies to:
• Move and display vessels or components during showcase season for up to four months without paying import duties
• Perform repairs and add value to merchandise within the FTZ without paying sales and excise taxes
• Retain Country-of-Origin status for products maintained in the FTZ
• Allow the handling of products not permitted to import into the United States due to EPA and/or other agency restrictions
• Save all duties and taxes payable at importation if the vessel is titled outside the country.
The initial marine industries companies approved to be foreign trade zones are:
1) Rahn Bahia Mar Marina, 801 Seabreeze Boulevard, Fort Lauderdale, FL 33316
2) Pier Sixty-Six Marina, 2301 SE 17th Street, Fort Lauderdale, FL 33316
3) Hilton Fort Lauderdale Marina, 1881 SE 17th Street, Fort Lauderdale, FL 33316
4) Roscioli Yachting Center, 3201 W. State Road 84, Fort Lauderdale, FL 33312
5) Bradford Marine, 3051 W. State Road 84, Fort Lauderdale, FL 33312
6) Ward’s Marine Electronics, 617 SW 3rd Avenue, Fort Lauderdale, FL 33315
7) Lauderdale Marine Center, 2001 SW 20th Street, Fort Lauderdale, FL 33315
8) 760 Taylor Lane, 760 Taylor Lane, Dania Beach, FL 33004
9) Derecktor Gunnell, 775 Taylor Lane, Dania Beach, FL 33004
10) Frank & Jimmie’s Propeller, 280 SW 6th Street, Fort Lauderdale, FL 33301
11) Yacht Management, 3001 W. State Road 84, Fort Lauderdale, FL 33312
12) National Marine Suppliers,2800 SW 2nd Avenue, Fort Lauderdale, FL 33315
13) D.S. Hull # 1, 311 SW 24th Street, Fort Lauderdale, FL 33315
14) D.S. Hull # 2,3355 SW 2nd Avenue, Fort Lauderdale, FL 33315
15) Lauderdale Boat Yard (Naugle), 3100 W. State Road 84, Fort Lauderdale, FL 33312.
The advantages to inverted duty are that rates on components can vary according to the commodity. Combining various assembly components changes the Harmonized Code of the article, and for the foreign component only the new duty rate is the one for the finished article.
Under duty elimination, more than 51 percent of value is added at the FTZ, and the product is deemed to be made in the U.S., thereby eliminating the duty.
MIASF expects the FTZ to be operational by the Summer of 2017. MIASF encourages the marine industry to educate itself about this huge perk to our industry and consider also becoming approved as a FTZ to pass the advantages on to your clients.
Article Author: Michele DeSantis