“I am happy the Ports of Indiana received approval for this new foreign-trade zone program,” said Indiana Congressman Baron P. Hill. “Now, more than ever, companies must have all the tools to build and create jobs in a timely manner. The foreign-trade zone program will increase trade, bring new business to Southern Indiana and ensure the Port of Indiana-Jeffersonville continues to serve as a gateway to the Midwest and I was happy to support this initiative.”
FTZs are restricted-access areas that are considered outside of U.S. Customs and Border Patrol territory. Companies within FTZ sites may be entitled to reduce or delay the payment of customs duties on foreign products brought into a zone, making the company more cost-competitive with overseas facilities. The new FTZ designation called “Alternative Site Framework” (ASF) was first offered by the U.S. Foreign-Trade Zone Board last year as a way to reorganize general purpose FTZs and simplify the application process for obtaining new zones.
Counties now included in the Jeffersonville FTZ area are Clark, Floyd, Harrison, Jackson, Scott and Washington. While only 13 ASF designations have been approved across the country, another 20 applications have been filed, including applications for Indiana’s other two ports which are expected to be approved in the near future. The Ports of Indiana serves as a statewide grantee of FTZs and operates a system of three ports on the Ohio River and Lake Michigan.
“As a major transportation hub for national and international shipments, the Port of Indiana-Jeffersonville contributes more than $1 billion in economic activity to the state economy each year – and foreign-trade zones are another way we can help businesses compete in a global market,” said Rich Cooper, CEO for the Ports of Indiana. “The new ASF designation allows us to expand the port’s foreign-trade zone to a six-county area and it reduces the time, the cost and the paperwork needed for companies in this area to apply for zone status. In some cases, companies can now obtain a zone in as little as 30 days in what used to be a year-long process.”
