Foreign Trade Zone law promotes regional economic development

— Legislation (A.9336) sponsored by Assemblyman William Magnarelli, who represents the town of Van Buren, was signed into law by Governor Cuomo. This new law permits Onondaga County to collaborate with other counties with respect to operating and maintaining a Foreign Trade Zone. Specifically, this legislation amends the New York State County Law by authorizing Onondaga County to re-organize and expand the operative area of its Federal Foreign Trade Zone at Hancock International Airport to include the neighboring counties of Madison, Oswego and Cayuga.

“Expanding the Foreign Trade Zone will make it easier for companies in Central New York to engage in foreign trade and exports. Exports are a growing sector of the local economy, and this re-organization of the FTZ will aid in this growth,” Magnarelli said.

Foreign Trade Zones were created in the United States to provide special customs procedures to U.S. businesses engaged in international trade-related activities. Duty-free treatment is accorded items that are processed in FTZ’s and then re-exported, and duty payment is deferred on items until they are brought out of the FTZ for sale in the U.S. market. This helps to offset customs advantages available to overseas producers who compete with domestic industry.

This change in the law allows Onondaga County to submit a new application to the Federal Foreign Trade Zone Board to re-organize the FTZ under new, more generous Foreign Trade Zone Board regulations.

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