The U.S. Department of Commerce gave the Caldwell Economic Development Council, (CEDC), the authority to create and manage the Foreign Trade Zone #280 in accordance with the Alternative Site Framework on May 12, 2012.
FTZ #280 was given administration to the Southwest Idaho Manufacturers Alliance (SWIMA), upon its inception in 2013.
Both businesses and the general public will enjoy exciting and substantial benefits from the FTZ. It will also have a significant impact on the development and commerce of southwest Idaho.
FTZ encourages economic growth through job retention and creation.
This program offers incentives to companies to start or expand their operations.
Facilitate and accelerate international trade.
As a public service, provide special customs procedures to assist firms in international trade operations with foreign plants.
Export promotion and facilitation
Encourage domestic activity retention and attract offshore activity.
Assist in state/local economic development efforts.
Help create employment opportunities.
What is a FOREIGN-TRADE ZEONE?
A foreign-trade area is a site that has been designated by the Foreign-Trade Zones Board (FTZ Board). Special customs procedures can be used at this site.
These procedures permit domestic activity that involves foreign items to be completed prior to formal customs entry.
Re-exported items are exempt from duty and the payment of duty is deferred for items sold in the United States. This allows overseas producers to offset the customs benefits available to them.
FTZ sites or facilities are still under the jurisdiction of the local, state, or federal governments.
Foreign-Trade Zone allows companies to save money on imported goods by reducing import duties and streamlining formal customs entry procedures.
FTZ offers incentives to companies, facilitates application and program participation.
FTZ’s facilitate international trade and help companies do business in the Treasure Valley. They also reduce operating costs.
Companies can reduce their costs by deferring or decreasing customs duties on imported products. They also realize distribution savings by streamlining goods processing and eliminating quota restrictions. Idaho businesses are therefore better equipped to compete with foreign producers.
Exemption from duty There are no duties or quota fees on reexports.
Duty Deferral Import duties and federal excise taxes deferred
Reduced Merchandise Processing Charges Maximum weekly payment of $485, versus 0.2% of the total shipment value for each individual shipment.
Inverted Tariff. Inverted Tariff.
Logistical benefits FTZ companies may be eligible for streamlined customs procedures (e.g. “Weekly Entry” or “Direct Delivery”
Additional Benefits Other Benefits. Foreign goods and domestic goods that are held for export are exempted from local/state inventory taxes. FTZ status can also allow a site to be eligible for benefits that are not related to the FTZ Act.