The City of Memphis is seeking a "foreign trade zone" designation for the former Defense Depot according to Councilman Brent Taylor. Taylor recently chaired a meeting of the Council's Economic Development Committee that endorsed efforts to seek trade zone status. The full Council later approved the resolution.
Taylor said the foreign trade zone designation has several advantages for businesses that might locate at the former depot. "The federal government doesn't charge duties on goods until they are shipped to another location within the U.S.," said Taylor. "So rather than paying duties at the port of entry, a business can wait until cash flow improves and pay the duties once the goods are shipped from the foreign trade zone to their ultimate destination," he remarked.
Duties are not required if the goods are shipped directly from the trade zone to a foreign destination. Another benefit occurs if goods are damaged in shipping. Duties are not charged on items damaged in route to a foreign trade zone noted Taylor.
The depot was closed by the military in 1997. Since then, local government has been promoting the area as a site for new businesses. Approximately 4.1 million square feet of building space is available with one million square feet already leased.
Taylor said the only cost to local government is a $1,600 fee required applying for foreign trade zone status.
