Area companies can learn about foreign trade zones — where they can defer, reduce or avoid customs duties — at a half-day seminar featuring trade-zone experts May 30 at Firestone Country Club in Akron.
Participants will learn about two trade zones in Northeast Ohio: The zone dubbed FTZ 181 — which is anchored by Summit County — and includes sites in 10 counties; and FTZ 40, with sites in Cuyahoga, Lorain and Ashtabula counties.
Companies that can benefit from being in a foreign trade zone include those that export products, import high-value products or products in high volume and are subject to import quotas, said Ron DeBarr, head of the Northeast Ohio Trade and Economic Consortium (NEOTEC), the Kent nonprofit that oversees the two Northeast Ohio zones.
DeBarr, president and CEO of NEOTEC, noted that the application process for companies seeking trade-zone status “is now much more streamlined and user friendly.”
He said it used to take nine to 12 months from the time of application for a company to start using trade-zone benefits. Now, it can take just 30 days, he said.
DeBarr said his organization offers a free, confidential analysis to companies to determine how much money they can save by being in a trade zone. Companies must evaluate whether the amount they save in customs duties makes up for zone administrative fees.
Companies pay a minimum of $2,000 and a maximum of $20,000 to receive benefits in FTZ 181 — the zone with sites in Summit County. Fees are based on the amount of space a company devotes to trade-zone operations. The Northeast Ohio Trade and Economic Consortium collects the fees and uses the money to defer administrative costs.
Foreign trade zones have been around since the Great Depression; there are about 250 nationwide. The two Northeast Ohio zones boast about eight companies receiving trade-zone benefits. The companies include ASW Global in Mogadore, a warehousing, distribution and logistics business on Gilchrist Road in Mogadore.
The Cleveland-Cuyahoga County Port Authority and Greater Akron Chamber are also seminar hosts. NEOTEC and the port authority have an agreement to administer and market the trade-zone program in Northeast Ohio.
Registration begins at 8 a.m., and the seminar is set to end at 1 p.m. Cost is $85 and includes a continental breakfast and buffet lunch. An optional golf outing will follow. To register, visit the NEOTEC website at www.neotec.org, or call 330-672-4080.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com.