Baltimore's Foreign Trade Zone Ranked Fourth in the World

Baltimore, MD (July 26, 2010) - fDi Magazine, produced by theFinancial Times, rankedBaltimore’s Foreign Trade Zone (FTZ) #74, managed by the Baltimore Development Corporation (BDC), as the fourth best port-related Foreign Trade Zone in the world. 

 fDi Magazine analyzed 700 economic zones and Baltimore came in fourth under the “Best Port Zone” category for 2010/2011, following the zones of Shanghai and Tangier, Morocco and Jacksonville, FL.  Of the remaining U.S. port zones on the top 10 list, the Foreign Trade Zone of Los Angeles ranked eighth. 

The magazine evaluated Zones by their economic potential, promotional strategy, cost effectiveness, facilities, transportation, incentives and foreign direct investment strategy.

Baltimore Development Corporation President M.J. “Jay” Brodie said,  “We are pleased that fDi Magazine recognized what many companies have already discovered about Baltimore’s Foreign Trade Zone - our proximity to market, responsiveness, and ability to couple FTZ with other economic incentive packages, sets us above many other Zones.”

Baltimore’s Foreign Trade Zone is one of the more active FTZ’s in the United States with 13 current operators utilizing over 3 million square feet of activated space.  At the end of fiscal year 2009,  imported goods were valued at $1.7 billion with the highest value of commodities being automobiles, aluminum and alcohol.  FTZ #74 serviced 82 businesses and contributed to more than 762 full-time jobs among its operators, with a total employment of almost 1,000 (including part-time and seasonal) workers.  The Zone was responsible for the re-exporting of over $13 million in goods overseas.  

 Companies can realize large cash-flow savings and pay reduced duties on imported products by operating in a Foreign Trade Zone.  The advantages of being in FTZ are as follows:

 Deferral of Duties: Customs duties on imports are paid only when merchandise is transferred into U.S. territory. This benefit equates to a cash flow savings that allows companies to keep critical funds accessible for their operating needs.

 Reduction of Duties: If the duty rate on foreign inputs admitted to the zone is higher than the rate applied to the finished product, the FTZ user may choose the finished product rate, thereby reducing the amount of duty owed.

 Elimination of Duties: No duties or quota charges are paid on merchandise exported from a FTZ. Generally, duties are also eliminated for merchandise that is scrapped, wasted, destroyed or consumed in a zone.

 For more information regarding Baltimore’s Foreign Trade Zone, contact Elizabeth Hines,  Director of Foreign Trade Zone #74, at (410) 837-9305 or ehines@baltimoredevelopment.com.

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