Subscribe to our free, weekly email newsletter!


Port of San Francisco enhances its Foreign Trade Zone

While San Francisco’s waterfront cargo operations are dwarfed by neighboring Oakland, it remains a viable “niche” gateway
By Patrick Burnson, Executive Editor
March 16, 2012

The U.S. Department of Commerce recently approved the Port of San Francisco’s request for reorganizing its Foreign Trade Zone (FTZ) #3 under the new Alternative Site Framework (ASF) program.

According to port spokesmen, this a more efficient process that requires less paperwork and streamlines the process for businesses to apply for a zone.

The program allows existing companies and new companies in San Francisco and San Mateo counties to secure FTZ status within approximately 30 days from when an application is accepted.  Without the program the process can take 8-12 months.

While San Francisco’s waterfront cargo operations are dwarfed by neighboring Oakland, it remains a viable “niche” gateway. Late last year, Secretary of Transportation Ray LaHood announced that the port would be awarded $2.97 million for rail improvements aimed at improving segments of its freight rail track in order to enhance safety, livability, and economic development.

A Foreign Trade Zone is a secured area in a designated customs “port of entry,”  and while physically located within the U.S. it is considered outside U.S. Customs territory. This allows for foreign goods to be
brought into FTZs without formal customs entry for manufacturing, testing, assembly, processing, storage, and distribution.  Duty payments on imported goods and materials can be reduced or eliminated, or deferred until they leave the designated area and enter U.S. commerce.

Goods not entering U.S. commerce, for instance re-exports, are not obligated to pay customs duties.

The Alternative Site Framework program expands upon the benefits already granted within the FTZ program in an efficient way.  Companies have the advantage to extend the FTZ benefits to their own already existing manufacturing, processing and distribution locations within San Francisco and San Mateo counties, yet outside of the Port of San Francisco.

“The new expedient process gives San Francisco and San Mateo companies a competitive advantage, especially when competing on a global scale,” said Peter Dailey, Maritime Director for the Port of San Francisco, grantee of FTZ #3.  “Foreign Trade Zones are one tool to reduce logistics costs, which translates into savings to a company’s bottom line.  More competitive companies translate into new economic opportunities and help create new jobs.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The tired cliché of “Perfect Storm,” is probably lost on East Coast shippers now weathering fierce winter winds and snow, but the expression still has currency on the Pacific Rim.

Owners of corporate fleets and fuel buyers face two dilemmas: a limited supply of cost-effective, low greenhouse-gas fuels, and little information on fuel sustainability impacts across the full production and use value chain.

U.S. Carloads were up 5 percent annually at 294,738, and intermodal at 253,317 containers and trailers was up 3 percent.

When it comes to Congress actually getting its act together on a new long-term federal transportation bill, things remain as status quo as it gets, with the big takeaway being nothing really ever gets done, when it comes to passing a badly overdue and needed bill, rather than these band-aid extensions Congress keeps signing off on.

Truckload and intermodal pricing was up on an annual basis, according to the December edition of the Truckload and Intermodal Cost Indexes from Cass Information Systems and Avondale Partners.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA