June 1-June 14, 2016
—
COLORADO REAL ESTATE JOURNAL
— Page 11B
L
imon Foreign Trade
Zone No. 293 is now an
available! Whether you
represent a business importing
goods into Colorado or are
working with a client, this may
be an important tool. Businesses,
real estate professionals,
economic development
professionals should know about
this tool.
An FTZ is a designation,
granted by U.S. Department of
Commerce through the Foreign
Trade Zone Board, designed to
encourage U.S. job activity by
allowing delayed or reduced duty
payments on foreign components
while using U.S. labor forces
for production. From a local
viewpoint, an FTZ is a tool
encouraging primary jobs in the
U.S. that could have been off-
shored and creates tax revenues
for counties, municipalities,
school districts and special
districts. Limon and Lincoln
County, with Town of Limon
as Grantee, received a Grant of
Authority for FTZ No. 293 on
June 11, 2015. The Limon FTZ
No. 293 was granted authority for
up to 2,000 acres statewide. The
Limon FTZ Service Area includes
all of the counties of Adams and
Arapahoe and major portions the
counties of Elbert, Lincoln and
Morgan. This greatly expands the
areas of Colorado that are eligible
for user sites.
A site can be a parcel of
land, a warehouse, a portion of
warehouse or multiple, closely
located warehouses. Under the
alternative site framework, any
site, allowed by local land use
regulation, is eligible within
the Service Area. The Grant of
Authority allows designation of
Subzones outside the Service area
when operations cannot feasibly
be moved to, or accommodated
in the Service Area.
Alternative Site Framework
(ASF) is designed to serve
projects that want the flexibility
to both attract users to certain
fixed sites and to serve companies
at other locations where the
demand for FTZ services is
expected to arise in the future.
The ASF:
• Front-loads 90% of the
legwork for designation of a site,
reducing paperwork when a site
needs to be designated as an FTZ
and shortening the boundary
modification process to roughly
30 days.
• Allows the zone/site to
become flexible for operation
and administration.
FTZs allow users to
defer, reduce
or eliminate
duties:
•
Defer:
Import a product to
the site; hold it for a designated
amount of time; transport within
the U.S.; and pay duty only when
the good exits the FTZ Site into
the U.S. market.
•
Reduce:
Import different
products to the site; combine
these products with others,
including U.S. products; transport
in the U.S.; and then pay lower
duties on the final product rather
than the sum of the individual
duties.
•
Eliminate:
Import a product;
then export the product or the
product combined with others;
and pay no duty.
Duty payments on most
imported components are due
as soon as the component enters
the United States. Those same
components can be imported
into a FTZ site and the duty
is deferred until the final
product enters the U.S. market.
If the imported component
is combined with domestic
components into a final product,
the duty paid is the lesser of the
individual components or the
final component. If the final
product is then exported and
never enters the U.S. market, no
duty is paid to the U.S. So while
local communities benefit and
Colorado primary employees are
used in processes, the company
has a clear savings in customs
duty.
Types of Sites under
Limon FTZ No. 293
•
Usage-Driven Site
° A property consisting of
a warehouse, a portion of a
warehouse or multiple closely
located warehouses run by ONE
Operator for the specific purpose
of creating immediate usable
space for ONE or MULTIPLE
predetermined users.
•
Subzone
° Subzone (Special Purpose)
is a single-purpose site for one
company when the operations
cannot feasibly be moved to,
or accommodated within the
Service Area, with no strict limits
on location (though it should be
within a reasonable distance of
the Limon FTZ).
•
Magnet Site
° A larger property, often
consisting of multiple warehouses
(i.e., industrial park), used on an
as-needed basis where users act as
renters and do not need to apply
for zone status. A Magnet Site
can have ONE or MULTIPLE
Operators with each catering to
ONE or MULTIPLE Users.
° The Town of Limon has
identified two Magnet Sites within
the Town of Limon.
The Limon FTZ will work
with other local government
and economic development
organizations to identify user
driven sites. More complete
information on FTZ No. 293,
including a Guidebook, is
available online at
townoflimon.com/index.php/
economic-development/foreign-
trade-zone-no-293/limon-ftz-
guidebook.
For questions, contact Joe
Kiely, FTZ Director, at jkiely@
townoflimon.com or call 719-775-
2346.
Town of Limon
Limon FTZ No. 293
Connecting Colorado Globally
FTZ No. 293
Joe Kiely, FTZ Director
Phone: 719-775-2346
Mobile: 719-740-2240
The FTZ Advantage ~ Alternative Site Framework
Service Area:
Counties of
Adams
Arapahoe
Elbert
Lincoln
Morgan
Joe Kiely
FTZ Director, Town of Limon
