The point of the FTZ Point

By: | Issue #657 | at 09:55 AM | Channel(s): Projects  

The point of the FTZ Point

The Canada Border Services Agency collects a total of $30 billion in duties and taxes at the border. Of that, as much as $23 billion could be claimed for drawback, in other words, refunded to companies operating in Canada.

But it seems that eligible companies are not making use of duty relief programs in Canada. Around 290,000 companies operating north of the border either import and/or export, and yet only 1,650—less than six percent—make use of incentives that could reduce these tax and duty liabilities.

That’s why the Canadian government started the Free Trade Zone (FTZ) Point program. The point of the Point, so to speak, is to provide resources to grow awareness of duty relief programs among Canadian businesses and to provide a one-stop shop for companies to interact with the seven or so government agencies that provide the duty incentives.

There are eight such FTZ Points in Canada—at Calgary, Winnipeg, Niagara, Regina, Edmonton, Halifax, and Cape Breton—with the eighth Point, at Windsor-Essex, across the river from Detroit, having been designated in July.

“Companies are leaving a lot of money on the table,” said Rakesh Naidu, chief operating officer of the Windsor-Essex Economic Development Corporation, the operator of the newest Point. “Once they start using these programs they can start improving their cash flow and becoming more competitive.”...


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Peter Buxbaum's avatar

American Journal of Transportation

More on Peter Buxbaum

Peter Buxbaum has been writing about international trade and transportation, as well as security, defense, technology, and foreign policy, for over 20 years. Besides contributing to the AJOT, Buxbaum's work has appeared in such leading publications as Fortune, Forbes, Chief Executive, Computerworld, and Jane's Defence Weekly. He was educated at Columbia University.