How do I know if a zone is right for my community/company?
- General-Purpose Zone: The first thing that should be done is to assess the level of international trade in the area and if there is a need for zone services for local companies. The application process is lengthy (app. 10-12 months) and if the zone is approved there are security and operating requirements that may be cost prohibitive if there is not a strong need for zone services.
If there is a local company that needs access to zone procedures for their facility, they can still access the program through a subzone.
- Subzone: A company interested in a subzone should also perform a cost-benefit analysis. The application process for a subzone can also be lengthy (10-12 months) and there are costs associated with operating a subzone. Although it will vary by company and industry, existing subzones have indicated that the estimated duty savings must be at least $100,000 per year for the subzone to be worth the company’s efforts.
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