DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Foreign Trade Zone transition to the Alternative Site Framework model and authorization for the City Manager to execute future Foreign Trade Zone Operator Agreements.
SUMMARY:
In 1981 the Federal Foreign Trade Zones Board established Foreign Trade Zone (FTZ) #80 to promote San Antonio as a center for international trade. The FTZ program allows companies to reduce or defer their U.S. Customs duties on foreign-origin goods, which in turn lowers their cost of doing business and makes them more competitive internationally.
In 2009, the FTZ Board, a Federal body, created the Alternative Site Framework (ASF) as an administrative option to make the national program more efficient and responsive to business users. This change provides companies with the ability to apply for the FTZ designation as long as they are located within Zone #80. Previously, a company had to locate within one of several targeted areas within the Zone in order to qualify for the designation. In addition, the new site framework reduces the application process from 180 days to approximately 30 days.
Staff recommends City Council authorize the submission of an application to the U.S. Foreign Trade Zones Board to transition FTZ #80 to ASF to make the local program a more effective and efficient tool for economic development efforts.
As part of our update to this federal program, staff also recommends City Council grant the City Manager authority to execute FTZ Operator Agreements with prospective users of FTZ #80, which is administrative in nature. As grantee of the zone, the City enters into FTZ Operator Agreements with companies to permit them to take advantage of the FTZ program's benefits.
Both ordinances are designed to provide for a more effective and timely process.
BACKGROUND INFORMATION:
FTZ #80 was established by the U.S. F...
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