The Port of San Diego has recently been approved by U.S. Customs and Border Protection and the City of San Diego to activate a Foreign Trade Zone (FTZ) at the Tenth Avenue Marine Terminal. As an FTZ, the terminal is a secured, designated location where foreign and domestic merchandise is generally considered to be in international commerce and outside of United States customs territory.
As an FTZ, the Port offers numerous benefits to businesses including duty reduction and deferral, logistical benefits, and cost savings. Shippers and businesses will have a secure area with reduced or eliminated duties on imported and exported cargo in the form of duty deferral, which allows for cash flow savings until cargo is imported and exported to and from the United States. Companies will receive reductions in merchandise processing fees due to single customs “entry” per week (pay one fee) rather than making multiple entries throughout the week. In addition, original equipment manufacturers will have the option to assemble various components of a project, creating United States products, and can obtain an additional cost savings as a duty drawback.
“The Port is a conscientious innovator that leverages our unique expertise, forward-thinking solutions and relationships to expand opportunities for businesses. By becoming a Foreign Trade Zone, we are enhancing our capabilities and become more appealing to potential customers,” said Chair Ann Moore, Port of San Diego Board of Port Commissioners. “Maritime industrial activities play an important role in the region’s economy. We expect this new offering to bring more business opportunities to San Diego, which is always a good thing!”
Currently, the San Diego region has 19 FTZ sites with most of them operating out of warehouses. The Port of San Diego is the only cargo terminal location in San Diego County that offers a waterborne component with access to ships. The 96-acre Tenth Avenue Marine Terminal offers a competitive advantage and is particularly popular for project cargo, wind power, and breakbulk commodities.
The Port of San Diego has leveraged its natural advantages to become a leading, West Coast specialty port. Comprising two terminals – Tenth Avenue Marine Terminal (TAMT) and National City Marine Terminal (NCMT) – it is a natural, deep-water, protected harbor that is uncongested and, due to the temperate climate, ideal for handling all types of cargo year-round. Due to its strategic location, the Port of San Diego services goods movement to and from Mexico, Central and South America, Asia, Australia, Canada and Europe. It is also one of 17 commercial ports designated as a strategic port in support of national defense, which allows military access to the marine terminals and cargo-handling facilities on 48-hour notice during times of national emergency.
Sea News, August 3