The Chattanooga Chamber Foundation recently received approval for the expansion and reorganization of Chattanooga’s Foreign-Trade Zone to include all of Hamilton, Marion, Grundy, Warren, Sequatchie, Bledsoe, Rhea, Meigs, Bradley, Polk and McMinn Counties.
“Expansion of Chattanooga’s Foreign-Trade Zone represents a regional, collaborative approach to promoting employment opportunity and economic growth throughout Southeast Tennessee,” said Hamilton County Mayor Jim Coppinger.
Companies regularly importing to the U.S.
in high volume benefit from locating to an FTZ, which reduces importing costs and simplifies processes to more efficient inventory control systems. Relief from inverted tariff rates, which exist when the duty rate for a finished good is lower than the duty rate of component parts, is one major benefit of FTZ designation for U.S. based manufacturers facing competition from importers of finished products.
“By providing companies throughout the region access to Foreign-Trade Zone benefits, we can better facilitate exports as well as provide tools for local companies to compete in the global economy,” said Chattanooga Mayor Andy Berke.
The Chattanooga FTZ will be reorganized under alternative site framework, allowing flexibility in the designation of subzones and usage-driven FTZ sites and thus encouraging trade-related manufacturing and distribution activity.
“The alternative site framework will enable the Zone project to meet the shifting needs of current users. It also provides economic professionals within a wide radius with an additional benefit they can leverage to attract new businesses, both large and small, and support existing business,” said Craig Pool, president of FTZ Corporation, which serves as the Zone project’s administrator.
“The reorganization of our Foreign Trade Zone addresses a need for Zone status where large manufacturers and distributors already exist or have expressed interest in locating,” said Charles Wood, vice president of Economic Development at the Chattanooga Area Chamber of Commerce. “This will also help attract foreign investment and encourage retention of trade-related activity in the U.S.”
Doug Berry, vice president of Economic Development at the Cleveland-Bradley Chamber of Commerce, also applauded the expanded FTZ boundaries. “We are excited that the FTZ program will be available to support our business community as well as business in surrounding counties. We especially appreciate the involvement of Bradley County Mayor Gary Davis.”