cargo gateways (Chicago,
New York JFK, Los Angeles
and Dallas-Fort Worth) into
FTZs. Moreover, any of the 42
US distribution centres of its
Global Logistics business can
become a FTZ.
“Adding FTZs enables
customers to streamline
compliance validations to
mitigate risk and promote
savings on their IAF shipments
by leveraging FTZ-designated
gateway facilities,” explains Jeff
McCorstin, President of UPS
Global Brokerage and Customs.
The full benefi ts of FTZs
beckon to operators who ignore
the domestic market and reexport
their goods. One tenant
in the Rickenbacker FTZ, which
spans the entire airport as well
as 25 counties, re-exports 20%
of its output to Canada. This
translates into savings of 37%
original duties on material
imports plus the 25% Chinaorigin
tariff. Another fi rm in
the zone, which re-exports 95%
of its production, manages to
avoid the original duty of 5.8%,
plus 10% on aluminium and
25% in terms of China origin.
In fact, tenants who do
not re-export their goods
still benefi t from FTZ usage.
“Deferral of duties is one of the
primary functions of an FTZ,”
remarks Griffi n.
“It helps companies manage
cash fl ow better,” says Gammon.
“Since the China tariffs were
introduced, managing cash fl ow
has been the primary factor.”
In addition, they can save on
merchandise processing fees.
The Columbus Regional
Airport Authority actively
leverages the FTZ status
of Rickenbacker and the
surrounding area. “It
plays a very large factor in
our promotions and our
discussions about the airport,”
asserts Griffi n.
Currently there are 18 operations with FTZ designation in the
area, 17 of them active and one getting ready to sign up. Combined,
they generate US$10.4bn worth of merchandise in the zone.
The appeal of Rickenbacker
Stan Wraight, President and CEO of Strategic Aviation Solutions
International, notes that Rickenbacker’s appeal is further
strengthened by a railhead and the presence of a number of
distribution centres. He also regards the North Carolina Global
TransPark, a 2,500 acre industrial zone with an airport and
multi-modal connections, as a strong contender in the FTZ game,
pointing to its proximity to automotive production centres in
South Carolina.
Second-tier airports, which are usually not congested and have
ample land, are the prime candidates for the FTZ strategy, he argues.
Some large gateways are trying as well, though. Miami
International airport, which was granted FTZ status in 2018, has
used this as one element in its successful bid to become a designated
clearance point for e-commerce parcels going into Brazil through
the national postal agency Correios. Brazilian consumers can register
for the postal operator’s scheme, which allows them to purchase
goods from online websites overseas, which are then routed through
Miami for preclearance and fl own to Brazil, where they are fed into
national distribution networks as domestic shipments.
It took fi ve years to make all the necessary arrangements,
recalls Emir Pineda, Manager, Aviation Trade and Logistics in the
Marketing Division of the Miami-Dade Aviation Department.
He has ambitions to take this further, noting that several postal
agencies from Latin America have expressed interest in the concept.
“I think Miami would be one of the better candidates for
FTZ activities. It is one of the biggest markets for re-exports in
the US,” comments Mike Webber, Associate Vice President of
Landrum & Brown. Limited space on the airport is not a serious
obstacle, he fi nds, arguing that cargo can be moved in bond to
FTZ sites off airport.
Gammon reckons that choice of location is largely dictated
Rickenbacker is on a roll, thanks to the FTZ
coverage, coupled with rail links and a number
of useful distribution centres
Over the past
year we’ve seen a
30-40% increase
due to the China
tariffs
Shanetta Griffi n, COO, Columbus
Regional Airport Authority
www.airlogisticsinternational.com December 2019 29
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