FTZ: Foreign Trade Zone Point

In early 2015, the WindsorEssex Economic Development Corporation recognized the many economic benefits that a FTZ Point designation would bring to the Windsor-Essex region. As a result, the WindsorEssex Economic Development Corporation's Business Development team completed an expression of interest to seek a FTZ Point designation. We are confident the Windsor-Essex region is well positioned to host a FTZ Point and exceeds all ten considerations required as set out in the application. The extensive application included a set of criteria such as:

  1. Economic Priority For the Region
  2. Private Sector Leadership and Commitment
  3. Dedicated Governance Body
  4. Local and Provincial Government Support
  5. Favourable Business Environment
  6. Available Land
  7. High Quality Infrastructure
  8. Active Participation and Connect in and Connect to Global Supply Chains
  9. Access to Skilled Labour
  10. Access to Multi-Modal Transportation System

 

Recognizing that there are many questions around a Foreign Trade Zone Point, we have prepared the following information:

 

What is a Foreign Trade Zone Point (FTZ)?

Lead by a not-for-profit organization, such as the WindsorEssex Economic Development Corporation a Foreign Trade Zone Point is a one-stop shop/service providing businesses with information on Canada’s FTZ policies and programs. The not-for-profit organization is supported by a Task Force that is led by FedDev Ontario, and includes representatives from:

The FTZ Point would consist of the lead not-for-profit organization (WindsorEssex Economic Development Corporation); industry representatives; FedDev Ontario; other Federal FTZ representatives, the Government of Ontario and the respective municipalities (Windsor-Essex County, Ontario Canada).

For more information visit http://www.fin.gc.ca/ftz-zf/index-eng.asp

 

What does this mean for the Windsor-Essex region?

The goal of the Foreign Trade Zone Point designation is to raise global and national business awareness of the Windsor-Essex region’s ability to encourage and support business operations that are import and export-focused.

It addresses an opportunity to provide a single referral point for businesses to the many federal and provincial programs and services available to exporters.

The Foreign Trade Zone also addresses the need for various levels of government to receive and act on feedback about import and export-relevant programs and systems. It is an opportunity to focus on import and exports as a source of growth and prosperity.

 

Overview of some of Canada’s FTZ-Type Programs

Duties Relief Program: Administered by the Canada Border Services Agency, the program allows businesses to import goods into Canada without having to pay customs duties as long as the goods that were either stored, processed or used to manufacture other goods, are later re-exported.

Drawback Program: Administered by the Canada Border Services Agency, the program allows businesses to apply for a refund of customs duties paid on imported goods that are later re-exported or destroyed under CBSA supervision.

Customs Bonded Warehouse: Administered by the Canada Border Services Agency, importers can store imported goods or domestic goods destined for export in their own private CBSA licensed customs bonded warehouse or in a local CBSA licensed public customs bonded warehouse without having to pay customs duties and other import duties or taxes including the GST.

Duties and taxes are never payable if the goods are exported from Canada within four years.  Duties and taxes are however payable if the goods enter the Canadian market.

Private and public licensed customs bonded warehouse storage facilities do not have to be a conventional warehouse – they could be part of an office building, a convention centre or even a hotel conference room, depending on business requirements.

Export Distribution Centre Program: Administered by the Canada Revenue Agency, the program relieves participants of the obligation to pay the GST/HST on imported goods and some domestic goods. This program is intended to benefit export-oriented businesses that store or process imported goods to add limited value to them and then re-export those goods.

The Exporters of Processing Services Program: Administered by the Canada Revenue Agency, the program relieves participants of the obligation to pay the GST/HST on imported goods belonging to non-residents, provided that these goods are imported for processing, distribution or storage and are subsequently exported.

For more information visit http://www.fin.gc.ca/ftz-zf/index-eng.asp

 

Benefits and Outcomes of Establishing an FTZ Point

 

For more information, contact:

Nick Kazakoff
Business Attraction Specialist
nkazakoff@choosewindsoressex.com
Tel: 519-255-9200 x2245