FOR IMMEDIATE RELEASE   1/26/04

Contacts:

Lance LaCour   251-947-2445

Greg Jones       251-471-6725 ext 315

FOREIGN TRADE ZONE SITES

IN BALDWIN COUNTY APPROVED

BY U.S.  DEPARTMENT OF COMMERCE!

 As part of the expansion of the Mobile General Purpose Foreign-Trade Zone, Baldwin County has been approved for four sites by the U.S. Department of Commerce Foreign-Trade Zones Board. The General Purpose Foreign-Trade Zone sites are located in Loxley, Robertsdale, Fairhope, and Gulf Shores and encompass total of 1,139 acres and are part of area industrial and business complexes.

“Foreign-Trade Zones increase the ability of participating local companies to compete with international businesses”, noted Lance LaCour, President of BCEDA. “They are also an excellent tool to attract and retain manufacturing and distribution related industries.” According to Greg Jones, President of the Mobile Foreign-Trade Zone Corporation, “Foreign-Trade Zones (FTZ’s) are a part of a federal trade program that allows U.S.-based companies to save on duties and tariffs, and thereby enhances their competitiveness in today’s global economy.” Other FTZ advantages are as follows:

Advantages:

1. Relief from inverted tariffs: If foreign merchandise is brought into an FTZ and manufactured into a product that carries a lower duty rate, then the lower rate applies.

2. No duty payment is owed while it is being manipulated, repaired, or stored in the FTZ.

3. No Duty on Domestic Content or Value Added – No duty is assessed on domestic parts, materials or labor that is incorporated into the product.

4. No duty on re-exports.

5. Zone-to-Zone Transfers – A vendor located at one FTZ may sell goods to a buyer in another Zone anywhere in the U.S. and transfer those goods with no duty paid on the goods.

LaCour noted that there are two local companies in Baldwin County that may be able to utilize the advantages of the FTZ brings immediately. These companies are Euromex and Airinc.

The areas where the zones are located are the Loxley I-10 Business Park north of I-10 in Loxley, the Robertsdale Industrial Park located west of AL59 on CR54, the H. L. Sonny Callahan Airport Area in Fairhope, and the Gulf Shores Industrial Park located adjacent to and at Jack Edwards Airport.

BCEDA has worked on the Foreign Trade Zone project for five years and expended $5,000 for Baldwin County’s part of the application. LaCour thanked all of the local elected officials and Industrial Development Board Members, companies, City of Mobile, Chambers of Commerce, BCEDA Staff, and Greg Jones for their efforts in getting the zone locations approved.

For more information on the foreign trade zone and location of the zones, contact Sean Lytle