Friday, May 10, 2002
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Friday, May 10, 2002 |
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Push underway to promote Foreign Trade Zone benefits to local industry, businesses By JOHN
MUNFORD No business or industry in Peachtree City has taken advantage of federal tax breaks relating to the city's Foreign Trade Zone designation. But the Development Authority of Peachtree City wants to see that change and plans to work with its counterparts in Fayette County to make sure local leaders are aware of the advantages of using the special designation. The FTZ allows businesses to import goods from overseas and delay payment of federal tariffs, authority chairman Tate Godfrey explained at Saturday morning's economic development workshop. The tariffs are paid after the item is manufactured unless that item is sent to another FTZ in the country; in such a case the tariff would be due when the larger item is sold, Godfrey noted. The savings on the tariffs allow companies to increase their cash flow, Godfrey said. The catch is that those goods must be kept separate from the company's normal inventory, and that has kept local businesses skittish from implementing the system to save on the tariffs. The authority sought the foreign trade zone status for the industrial park and some office areas in town several years ago at the request of two companies who wanted to use the program to save money, Godfrey said. But neither company was able to implement the program, he added. Authority member Doug Warner said it was disappointing that neither company has been able to implement a program to take advantage of the FTZ designation. Still, just having the FTZ status helps recruit other businesses and industries, said authority member Scott Bradshaw. He suggested erecting a special sign touting the FTZ designation to improve the city's business image and let the public become aware of it. Chris Clark of the Fayette County Development Authority said recent changes in the law allow distribution facilities to take advantage of FTZ tariff delays also. Godfrey suggested the authority consider funding a membership in a trade organization that supports FTZ efforts.
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