The Zones Report cited FTZ No. 25 as a noteworthy example of successful economic development through the national FTZ program.
“Our FTZ leads Florida in the value of international goods handled through its facilities,” said Chief Executive & Port Everglades Director Steven Cernak. “South Florida and the FTZ at Port Everglades are also poised to lead the state in meeting the goals of the federal government’s National Export Initiative (NEI). Our proximity to South America, Central America and the Caribbean makes it efficient to transport goods through our seaports and airports. Ports in particular are being targeted as a key component of this initiative because of the expertise seaport professionals have in foreign trade. Port Everglades’ consistent year over year growth in export cargo makes us the number one seaport for export trade in Florida.”
Due to Port Everglades’ status as the world’s second busiest cruise port, many users of the Port Everglades’ FTZ have successfully established themselves as purveyors of ship supplies specific to the cruise industry such as food, beverages, linens, towels, deck chairs, and ship spare parts. But businesses operating within FTZ No. 25 also perform a wide variety of other activities, including warehousing and distribution of cosmetics, tools, automobile parts, petroleum, and consumer electronics.
“The cruise lines operating at Port Everglades rely on the FTZ to supply them with items related to cruising that the ships sell to onboard cruise guests or that are consumed or used by the ship,” said Michael Vanderbeek, Port Everglades Director of Business Development.
The county-wide FTZ program is administered by the Port Everglades Department of Broward County, Florida, and operated by NAFTZ member Robert Jacob. FTZ No. 25 is Florida’s oldest and largest and serves 75 businesses in its General-purpose Zone, creating over 500 direct jobs in the local economy at 14 locations within the county. FTZ No. 25 currently also has five Special-purpose Subzones at Port Everglades.
Zone Operator Robert Jacob explains that “Foreign-Trade Zone No. 25 is strategically located for businesses interested in pursuing international trade with the Caribbean and Latin American markets. Through our marketing efforts we have taken advantage of our geographical position by attracting several large companies that use FTZ No. 25 as a center for distribution to Latin America as well as for supplying the cruise lines.”
This strategic positioning near a growing export market has helped FTZ No. 25 to re-export more than 50 percent of the merchandise admitted to the Zone in 2011, making it one of the most export-intensive Zones in the country.
Port Everglades Director Cernak added “As trade with Latin America increases, the increasing amounts of cargo passing through Port Everglades will bring significant growth to Broward County’s economy. The FTZ will make it possible for even more exports to flow to Latin America and for their products to flow to the rest of the world.” Port Everglades is the only domestic port with a U.S. Department of Commerce Export Assistance Center (USEAC) on its premises.
About FTZs
FTZs were created to provide special U.S. Customs and Border Protection procedures for U.S. companies engaged in international trade. FTZ-approved businesses can take advantage of duty-free, duty-deferred and/or duty-reduction programs for import commodities destined for the U.S. Similarly, by using an FTZ, such as Broward County’s FTZ No. 25, businesses that import commodities that are destined for redistribution outside of the United States can avoid duties altogether and implement effective economic solutions for cargo storage, merchandise manipulation and manufacturing needs.