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

Jacksonville, Fla.-based Florida East Coast Railway (FECR), a 351-mile freight rail system on the state’s east coast, recently made two separate announcements. One had to do with an expansion of intermodal services between Charlotte, N.C. and various locations in South Florida and another was related to the company boosting its intermodal capacity through the addition of new equipment.

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

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