European Stars And Stripes (Newspaper) - January 11, 1981, Darmstadt, Hesse                                Entrance to underground area of International Trade Center at Kansas up americas an Trade by Robert Zausner United press International As foreign Trade and worldwide Competition companies Are rediscovering an old Way to save Money without leaving the their Trade such zones allow deferment and elimination of Tariff from Hawaii to the zones Are creating big Sav Ings for american companies and helping local business communities attract new from when new Deal legislation was created to allow for the to the nation had established Only eight of the duty free there Are them approved in the last five More Are on the the zones Are considered outside of customs thus firms in the zones can import items without paying duty until they Are sold such business has increased from million in 1970 to million in 1978 and billion in for fiscal the prognosis is that about billion Worth of goods will be processed through the by allowing companies to assemble and display merchandise without first paying a make for substantial cashflow a duty is not paid until the product is sold then a Tariff is charged Only on those items not on profits or unsold if the finished product is sold outside the United or which about on third of All Mer Chandise it goes for whose Rabbit Assembly Plant is located in new in a 1977 sub zone of Pittsburgh pays Only a percent Tariff charged on finished but it pays Only on the Cost of foreign in a foreign built Auto is subject to percent duty on the total Price of the labor and profits foreign Trade zones were not always profitable because labor in the United states was it still but now ranks fifth in labor whereas the labor Price tag in West Germany and Japan have quadrupled in the past 12 in an april amendment to customs regulations permits firms like vow to pay Only per cent Tariff on their imported they had to pay the usual 5 to 6 percent charged on the regulation coupled with other lets companies like vow chop 30 to 50 percent off the total value on which they pay Marshall one of the founders and current president of the National association of foreign Trade said the new regulation to changing the Way the country does right now in at the Kawasaki motors Usa Plant in he they have been exporting like crazy out of they dont pay duty if they not a lincolns zone went into operation the same approach is used for motorcycles by Honda in typewriters by Olivetti in Pennsylvania and Oij by Pacific resources in zones in Miami and new York handle mostly according to the Ftp associations a hypothetical widget manufacturer with an annual import inventory of million can save million yearly under certain we see a lot of cases where companies Are coining said some like Orcas solid state the sole client of a foreign Trade zone located near Scran find similar substantial savings in importing the number of free ports also is growing in other Industrial but not with the same Tempo As in the United High priced foreign made components through the free company spokesmen would not comment on How much business they but several sources estimate the volume is More than making the Scranton area Ftp one of the nations largest by some employing More than now Deal through foreign Trade which operate like Public utilities with uniform future expectations Are for nothing less than a though the number of zones to open May taper off the umber of industries getting in voted to expected to co Timie to Joseph who initiated and manipulated Orcas step into the later quit the company in favor of helping set up another Ftp in mount i left a Good position with is years seniority in a january 1981 highly regarded company because i think the idea of foreign Trade zones is coming of he i thought it was going to run and i wanted to run with in the Domestic free ports were used basically by Small companies As warehousing operations for Cash flow and convenience but with greater emphasis on foreign the zones Are evolving into big time manufacturing Oconnor said the list of customers reads like a who who list of prominent companies general probably 25 More companies of that same stature Are looking at zones right now and probably will locate in he the Commerce departments foreign Trade zones in recently approved applications submitted from san and Prince Georges which became foreign Trade zone Detroit and Panama City and should have applications approved according to John the boards executive applications Are just in from Al and Wilmington and construction of the new Jersey foreign Trade oconnors wont Start until the Spring and will not be ready for occupancy until autumn of but potential customers Are banging on the a special like was opened for the Ranson last february at its Woodbridge with the understanding Ronson will move into the Central zone although the Central zone will include Square feet in Oconnor said he has already received letters of interest or intent from companies calling for 1 million Square feet of the new Jersey zone will encompass 300 also planned is a 300acre corporate office Park and a 67acre hotel town Center we Hope to attract some of the nations finest corporate reports from other parts of the country Are Simi a Worth Ftp is under construction and scheduled to open for business in said Jerry consultant to Darrell Sekin and operators of that number there Are a number either leasing or building weve been waiting for this a Long we think it will be a tremendous Success and Wil have great Impact developing dal Worth As an International marketing other zone operators Hope their ftps also will attract we re about ready now to Start an Active marketing said Thomas Shelburne president of Eastern distribution which controls Ftp 24 near the Scranton Wilkes Barre this is a Good Opportunity to entice some High Quality Industry into this the Ftp is a Good Selling it could save a company that could use it quite a bit of the zone is becoming More and More a part of the selection criteria of said James director of the Scranton area located in is just finishing a land clearance with Worth of help from the Federal offset paperback the country third largest paperback has set up shop on the zones Marshall Miller said the Ftp in Kansas the first Inland in 1979 did million of business and now has 70 Only four or five of the firms previously were located in the City and Many of them never had dealings before in the United for some it can have an enormous eco nomic said for the it has a substantial economic it gives a Chance for some companies to come Back to the with an he noted some firms with twin plants on the mexican Border Are electing to shift More of their operations to the in Arizona and new John executive Secretary to the foreign Trade zones warned if a Community is not Strong in other aspects labor transport local taxes and local attitudes the zone will not make a the concept assumes that other factors Are compete he he predicted foreign Trade for which the Federal government requires no application will number 75 by the end of the Only Cost incurred by operators and clients is that for reimbursing customs for its supervision which Range from to about Miller said More than people Are employed in the operating ftps but that has an actual Community Impact of an estimated new the number of free ports also is growing in other Industrial but not with the same Tempo As in the United Europe had so in 1970 and now has some developing in addition to duty free and also Are offering foreigners tax the stars and stripes Page 11