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Foreign Trade Zone

Foreign Trade Zone #63

How can Locating to a Foreign Trade Zone Help My Business?

What is a U.S. Foreign Trade Zone (FTZ)?
A Foreign-Trade Zone (FTZ) is a specially designated area, in or adjacent to a U.S. Customs Port of Entry, which is considered to be outside the Customs Territory of the U.S.  Essentially FTZs are a public private partnership to maintain and attract U.S.-based international trade activity.  Did you know that over $200 billion (in value) of merchandise is received at FTZs annually?  Communities can retain existing jobs, attract new jobs and gain developer investment in the local community. Prince George’s County Maryland is home to one of four foreign trade zones within the State of Maryland.

Foreign-Trade Zones are established:

  1. To encourage and expedite U.S. participation in international trade
  2. To foster dealing in foreign goods imported not only for domestic consumption but also for re-export after combining with domestic goods
  3. To defer payment of duties only until goods are entered into the commerce of the U.S.

Activities permissible in a Foreign Trade Zone: 
Merchandise may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed and destroyed. Retail trade is prohibited.

Where is FTZ #63 located?
Foreign Trade Zone #63 is located in the Steeplechase 95 International Business  Prince George’s County, Maryland just off the Capitol Beltway and the new Ritchie Marlboro Rd. interchange  just off the Capitol Beltway (I-495) and the new Ritchie Marlboro Road interchange (Exit 13).

How can foreign trade zone help my business?

  • Duty is deferred for products admitted to the FTZ
  • Duty is eliminated on products imported to and exported from FTZ outside the US
  • Duty is eliminated on products admitted and subsequently destroyed within the zone
  • Duty is reduced on imported products admitted to the FTZ due to inverted tariffs
  • Merchandise may be transferred from zone to zone, extending the period of deferral
  • Users may obtain permission from Customs to move merchandise directly from the port of entry of the FTZ
  • Weekly entry and export is available to reduce administrative reporting
  • Duty is deferred on production equipment admitted to the FTZ for assembly and testing until placed in use

Inventory Tax Exemption   

  • 100% exemption from personal property assessments for commercial inventory, manufacturing/R&D inventory and manufacturing /R&D machinery within the FTZ (2005/2006 tax year and continuing until changed).

Opportunities

  • Duty may be payable in accordance with the inverted tariff applicable to the finished product as removed from the zone, depending upon which is lower.
  • Business-to-Business seamless transactions reducing supply chain cycle time – direct delivery, weekly entry and weekly export.

Why Steeplechase 95 International Business Park 
Steeplechase 95 International Business Park is a 110-acre mixed-use development located at the Capitol Beltway (I-495) and the new Ritchie Marlboro Road interchange. The business park offers individual sites that can accommodate buildings from 50,000 to 300,000 square feet with excellent access, visibility, and ample amenities.

Strategic Location

  • Located at I-95 in one of the most commercially desired areas in Prince George’s County, Maryland. The Park is located within a …
    • Foreign Trade Zone
    • Maryland Enterprise Zone
    • State of Maryland Priority Funding Area
  • Over 5.5 million people in Baltimore-Washington Metro area
  • Within an overnight freight haul to over 100 million people
  • 20-30 minutes from the 3rd largest US seaport (Port of Baltimore) and BW Thurgood Marshall International (cargo operations) within 25 miles
  • Dulles International Airport (IAD)  within 45 miles
  • Reagan National Airport within 20 minutes

Provides a Gateway to:

  • The North/South Corridor
    • I-95 (Florida to Maine)
    • I-70 (Ohio Valley)

Maryland’s Manufacturing Incentive Package

  • No gross receipts tax for manufacturers
  • No sales tax on:
    •  capital manufacturing machinery and equipment
    •  tangible personal property
    • equipment or materials used or consumed in manufacturing
    • Gas, electricity, steam, oil or coal consumed directly or predominantly in a production activity
  • No State or business personal property tax
  • No income tax on foreign dividends (if corp. owns more than 50% of subsidiary)

Maryland Enterprise Zone Program

  • The real property tax credit is 80% of the taxes due on the increase in assessed value as a result of the capital improvements in the property over the first five years, decreasing 10 % annually during the following years
  • The income tax credit is a one-or three-year credit for hiring new employees. 
    • Generally, $1,000
    • Economically disadvantaged, $6,000

Maryland Research and Development Tax Credit    

  • Basic R&D Tax Credit
    • 3% of eligible R&D expenses that do not exceed firm’s four year average
  • Growth R&D Tax Credit
    • 10% of eligible R&D expenses that do not exceed the firm’s four year average

Other Tax Credits

  • Maryland Job Creation Tax Credit
  • Maryland Disability Employment Tax Credit
  • Employment Opportunity Tax Credit for Employers
  • Work Opportunity Tax Credit (Federal)