The foreign trade zone in northern Nevada has won federal approval to operate under rules that provide greater flexibility and faster approval to companies that want to operate in the zone.
The Reno-area zone is the first in the state to be approved for use of the streamlined rules.
A foreign trade zone is territory within the United States that's treated by customs officials as though it's outside the country's borders.
That allows companies within the zone to import merchandise without clearing customs or paying duties. Inside the zone, companies can assemble components into final products or repackage goods, then export them.
That's provides a competitive advantage to companies within the zone, and about 20 sites in northern Nevada are designated under the foreign trade zone.
The new rules, which won approval from the Federal Foreign-Trade Zones Board last month, allow companies to win approval for trade-zone applications for warehousing and distribution operations as quickly as 30 days after they're filed.
That's far faster than the approval schedule under the previous organization of the trade zone, said Russ Romine, president of Griffin Global Logistics of Reno.
Griffin Global Logistics is administrator of the Northern Nevada Trade Zone, counseling companies on how to participate, ensuring they comply with the trade-zone rules and providing reporting to the federal government.
Romine, who is chairman of the board of the Economic Development Authority of Western Nevada, said the availability of a foreign-trade zone helps to attract new employers and strengthens existing companies.
"It is crucial that northern Nevada offer these types of incentives to the companies doing business in our area. This type of benefit is what will help us grow and position northern Nevada for success in the future."
EDAWN's top executive says the increased flexibility under the new rules will prove to be important.
"The new FTZ designation gives companies much more flexibility to participate in the FTZ," said Chuck Alvey, president and CEO of EDAWN, which is designated by the federal government as the grantee for the trade zone in northern Nevada. "Our region is one of only 12 FTZ's throughout the country that have been approved with this designation so it gives our area a competitive advantage for existing and potential manufacturing and distribution operations."
EDAWN has scheduled two seminars this week for companies that want to learn more about use of a foreign trade zone.
The first will run from 7:30-11:30 a.m. on Wednesday at NV Energy, 6100 Neil Road, room B7. The second seminar will run from 7:30-11:30 a.m. Thursday at the Gold Dust West Casino in Carson City.
Cost for either session is $25 per person. RSVP to EDAWN at 829-3768.
