(Hauppauge, NY-February 4, 2014) Suffolk County recently received good news from the U. S. Department of Commerce regarding its’ Foreign Trade Zone (FTZ). First, the County received approval of its application to restructure the Zone into the Alternative Site Framework.
“This is great news for Suffolk County and International Warehouse Group,” said US Senator Kirsten Gillibrand. “The new FTZ designation will encourage and equip more Suffolk businesses to better compete in the global economy. I will continue to use my seat on the President’s Export Council to ensure that Suffolk County grows its exports and sparks innovative ideas to jumpstart new businesses here where we need them the most.”
The Alternative Site Framework allows local companies to access the program and its’ benefits in a expedited timeframe and through a streamlined process while allowing the company to remain at its’ current location.
“I thank Senator Gillibrand for advocating on behalf of Suffolk County’s FTZ expansion application which affords Suffolk County businesses more opportunities and serves as an attraction for new businesses,” said County Executive Steve Bellone. “For the past 30 years, Suffolk County and the Town of Islip have administered this program with limited success due to its structure. We agree with the FTZ Board in that attracting businesses to a specific site in order to utilize the benefits of the FTZ is challenging, especially in these tough economic times. The Alternative Site Framework with its expedited review process and flexibility, offers Suffolk County an opportunity to maximize the potential of the FTZ program, enhancing the diversity and viability of our local economy.”
FTZ benefits allow for companies to receive an exemption or a delay on the Custom duties associated with eligible imported merchandise. Exemption of the duty is realized if the merchandise is re-exported. In addition, merchandise can be held indefinitely within the FTZ without any payment of the duties. Duty will be payable once the merchandise enters the domestic marketplace.
Approval was also received for the County’s application to include International Warehouse Group (IWG) as part of the County Foreign Trade Zone. IWG is a third party logistics company that distributes products for large manufacturers and retailers. The benefit will allow IWG to store product on behalf of their customers and delay the duty until the actual item is shipped. IWG occupies a 145,000s/f facility in Melville.
Jeff Heydt, CEO of International Warehouse Group added, “International Warehouse Group is very excited to be granted the designation of a Foreign Trade Zone facility for their Melville location. With the restructuring IWG can now offer our existing and new customer additional services with the hope of attracting both domestic and international companies to our site in Suffolk County. The FTZ is a great tool that can assist our customers to be competitive on a global scale.”
Suffolk County’s FTZ also includes the 52 acre site located adjacent to LI McArthur Airport and operated by Islip Town.
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