If you own a business and are looking for a warehouse location that is convenient for large-volume international import and export, you may be considering moving your business into a warehouse in the South Florida area. Strategically, Miami is situated in a prime geographic location for industries that do business throughout the Americas. Positioned as the “Gateway to the Americas,” Miami and the South Florida area boast several ports-of-call, and the region is home to industries and businesses ranging from industrial manufacturing, to international import and export distribution and logistics, all of which require a solid foundation of infrastructure resources. One of the best resources that the area provides for businesses considering a warehouse for import/export, manufacturing, and distribution is the Foreign-Trade Zone.

Benefits to Operating in a Foreign-Trade Zone

Foreign-Trade Zones (FTZs) in the United States are secure domestic areas that are technically under the supervision of U.S. Customs and Border Protection (CBP), however, businesses that operate within the FTZ are considered outside of the U.S. Customs territory and exempt from paying U.S. entry tariffs, taxes, or duties until merchandise or products are moved outside of the zone and enter the domestic U.S. market. If product that is imported into the zone is being prepared for export outside of the U.S., no U.S. duties or tariffs are owed prior to export. These areas are most profitable for operations that require the import of foreign dutiable materials that will be manufactured for re-export.

For industries that rely heavily on the import and export of goods for direct consumption in local markets, or for manufacturing into final products, moving into a warehouse located in a Miami FTZ would also be extremely beneficial. In addition to the lack of duties on goods that are imported only to be housed or manufactured prior to re-export to other countries, companies will also find the elimination of duties typically tagged onto waste, scrap, and rejected or defective parts. Businesses can choose whether they want to pay tariffs on goods and parts as they enter the U.S. or on the finished product as it leaves the zone if the final goods are for consumption in the U.S. market. Certain businesses may even see a reduction in merchandise fees because FTZ users may file a single customs entry per week, consolidating various shipments.

Foreign-Trade Zones are technically outside the commerce and customs territories of the U.S.; however, industries are not allowed to store lawfully prohibited goods or merchandise within the zone. Also, placing merchandise subject to a quota into the zone does not circumvent the quota, but businesses may store the goods in the FTZ warehouse until a quota opens allowing the goods to enter the market. Though there is no onsite presence of CBP, all FTZs are subject to spot checks and must obey the laws of the U.S. with regards to labor and immigration, both at the local and federal levels.

Miami Foreign-Trade Zones

Miami is home to three Foreign-Trade Zones.

PortMiami FTZ: Located at the Port of Miami, this FTZ is ideal for businesses looking for a domestic U.S. warehouse and expect goods and materials to arrive frequently through the port located in Miami. Visit http://www.miamidade.gov/portmiami/foreign-trade-zone-281.asp

Homestead Park of Commerce FTZ: This FTZ is home to the Homestead-Miami Speedway, and is located further south of PortMiami between Miami and the Florida Keys. The FTZ license is via the Vision Council. On a side note, Edward Redlich with ComReal is past-president of the VIsion Council Foreign Trade Zone.

Miami Free Zone: This FTZ, conveniently located in the Doral area close to Miami International Airport and Air Cargo, is a leading regional wholesale market and the most experienced FTZ in the South Florida area. The Miami Free Zone is also home to a premium showroom and international business center in addition to office and warehouse space. Visit www.MiamiFreeZone.com

“Did you know? ComReal is the only commercial real estate company officed in a foreign trade zone in the USA. Read their story at ComReal is in the Zone!“

Alternate Site Framework

Alternate Site Framework (ASF) gives most warehouses in Miami-Dade County the ability to become designated as a FTZ. This is an “alternative” framework to manage FTZ sites, and gives grantees of participating zones more flexibility to simplify the process and procedures to make minor boundary modifications to re-designate locations where companies can use the FTZ. This process is more focused and predictable than traditional FTZ site framework.

FTZs provide flexible control over domestic and foreign inventory, duty elimination, and high security standards under CBP checks. Miami is a leading regional epicenter for international business, trade, and logistics, making it a perfect location for industries interested in manufacturing, or any type of high-volume import and export to find a warehouse home in one of the FTZs located in the area.

If you are interested in applying for FTZ status and/or need an operator, we highly recommend a couple of our friends to assist.

References:

About Foreign-Trade Zones and Contact Info. (n.d.). Retrieved July 25, 2017, from https://www.cbp.gov/border-security/ports-entry/cargo-security/cargo-control/foreign-trade-zones/about

(n.d.). Retrieved July 25, 2017, from http://www.foreign-trade-zone.com/link01p.htm

Foreign Trade Zones. (2016, July 10). Retrieved July 25, 2017, from http://www.beaconcouncil.com/meet-miami-dade-county/international-access/air-flight-times-and-flight-patterns

Greater Miami Foreign Trade Zone. (n.d.). Retrieved July 25, 2017, from http://www.miamichamber.com/about/greater-miami-foreign-trade-zone

Miami Free Zone and Foreign Trade Zone at 2305 NW 107 Avenue, Doral, Florida. Visit www.miamifreezone.com

PortMiami Foreign Trade Zone. Visit http://www.miamidade.gov/portmiami/foreign-trade-zone-281.asp

Ed Redlich with Neal Asbury

If you are interested in the above-mentioned topics, I highly suggest you listen to The Neal Asbury Radio Show which is aired live at www.880TheBiz.com. WZAB 880 AM is affiliated with Bloomberg Radio, CNBC and Neal Asbury Show. I have been listening to Neal’s show for almost a year now and ComReal has even advertised on his radio show. Visit Asbury’s blog at www.asburysworld.com which is a forum to discuss small business entrepreneurs in industries such as warehouse distribution, manufacturing, logistics, importing and exporting via international trade. In 1999, Mr. Asbury setup Greenfield World Trade which is a global logistics and trading company that sells and services products that are manufactured in the USA. For more information, please visit Mr. Asbury’s website at: WWW.THENEALASBURYSHOW.COM