Item No: 4.C.2.
Meeting Date: July 22, 2013
From: Leonardo Treggi, Airport Manager
Subject: Resolution authorizing staff to seek approval to establish a Foreign Trade Zone at Leesburg International Airport
Staff recommends approval of the request to prepare and submit an application for a Foreign Trade Zone at Leesburg International Airport and, if the application is approved, to move forward with the necessary steps in the formation of a FTZ.
A Foreign Trade Zone (FTZ) is an area within a country where goods can be transported, stored, and/or processed without being subject to certain duties. It is also called a "free zone" or "free port." Currently, there are 286 FTZs in the United States, with 20 located in the State of Florida.
The establishment of a Foreign Trade Zone at Leesburg International Airport is of great significance. It can make the airport, City and County extensively more attractive to import/export businesses, manufacturers, and others. Some of the benefits are outlined below.
Benefits to a zone user:
• Duty Exemption - No duties on or quota charges on re-exports.
• Duty Deferral - Customs duties and federal excise tax deferred on imports.
• Inverted Tariff - In situations where zone production results in a finished product that has a lower duty rate than the rates on foreign inputs (inverted tariff), the finished products may be entered at the duty rate that applies to its condition as it leaves the zone.
• Logistical Benefits - Companies using FTZ procedures may have access to streamlined customs procedures.
• Other Benefits - Foreign goods and domestic goods held for export are exempt from state/local inventory taxes.
• FTZ status may also make a site eligible for benefits unrelated to the FTZ Act.
• Help facilitate and expedite international trade.
• Provide special customs procedures as a public service to help firms conduct international trade related operations in competition with foreign plants.
• Encourage and facilitate exports.
• Help attract offshore activity and encourage retention of domestic activity.
• Assist state/local economic development efforts.
• Help create employment opportunities.
1. Approve the request to apply for a FTZ at Leesburg International Airport and, if the application is approved, to move forward with the necessary steps in the formation of a FTZ; or
2. Such alternative action as the Commission may deem appropriate.
Approval for staff to proceed with preparation of an application for a FTZ will have no fiscal impact. If established, the Foreign Trade Zone will require administration; however the duties are to be absorbed by airport staff and, therefore, will have no fiscal impact. The alternative is to hire a Foreign Trade Zone Administrator, which could represent a significant fiscal impact.
Prepared by: _Leonardo Treggi_______
Attachments: Yes _X__ No ____
Advertised: ____Not Required ______
Attorney Review : Yes No ____
Reviewed by: Dept. Head ________
Finance Dept. _BLM,____________
Deputy C.M. ___________________
City Manager ___________________
Account No. _ N/A __
Project No. ___ ___________
WF No. ______ _________
Budget ______ _________
Available _____ ________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE CITY MANAGER AND CITY STAFF TO PREPARE AN APPLICATION SEEKING APPROVAL FOR THE FORMATION BY THE CITY OF LEESBURG OF A FOREIGN TRADE ZONE ENCOMPASSING LEESBURG INTERNATIONAL AIRPORT AND SUCH OTHER AREAS AS MAY BE DESIGNATED AS BEING PART OF THE FOREIGN TRADE ZONE, AND IF SUCH APPLICATION IS APPROVED, TO PROCEED WITH THE STEPS NECESSARY TO THE FORMATION OF A FOREIGN TRADE ZONE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Leesburg owns and operates the Leesburg International Airport, and
WHEREAS, the City desires to establish, operate, and maintain foreign trade zones and foreign trade subzones, to facilitate and expand international trade, encourage and facilitate exports, attract offshore activity and encourage retention of domestic activity, assist with local economic development efforts, and create employment opportunities, and
WHEREAS, the Florida Statutes authorize municipalities within the State of Florida to seek approval from the United States of America to form foreign trade zones, and upon receipt of such approval, to establish, operate and maintain foreign trade zones,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Manager and City Staff are authorized and directed to prepare and file with the proper authorities of the United States of America an application seeking the approval required for the City of Leesburg to establish, operate and maintain foreign trade zones and foreign trade subzones under the provisions of the laws of the United States of America and the State of Florida, and to do all things necessary once such approval is issued, to accept the grant of approval and proceed with the establishment, operation and maintenance of foreign trade zones and foreign trade subzones.
The City Manager is further authorized to select and describe, for purposes of such application, the location of foreign trade zones and foreign trade subzones, and to make such rules and regulations as may be necessary to comply with the laws of the United States of America and the State of Florida, regarding the establishment, operation and maintenance of foreign trade zones and foreign trade subzones.
All laws of the State of Florida, and rules of the Florida Department of Citrus, applicable to citrus fruit and processed citrus products, shall apply fully and equally within any established foreign trade zone or foreign trade subzone.
PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, on the 22nd day of July , 2013.
THE CITY OF LEESBURG, FLORIDA