Prince George’s County’s Foreign Trade Zone 63

Prince George’s County’s Foreign Trade Zone 63

Prince George’s County Economic Development Corporation1100 Mercantile Lane Suite 115A Largo, MD www.pgcedc.com

Ideal Location


Ideal Location

Proximity to 1/3 of the Consumer & Industrial Market (Overnight Delivery)

Direct Flights to US West Coast, Eastern & Western Europe– Three Major Airports

Region is 5th Largest Retail Market, 4th Largest Population Center

Proximity to US Federal Government– 1/3 of Federal Spending in Region– $8.7 Billion in Federal R&D Obligations


What is a U.S. Foreign Trade Zone?

A Foreign-Trade Zone is a specially designated area, in or adjacent to a U.S. Customs Port of Entry, which is considered to be outside the Customs Territory of the U.S.

A Public/Private Partnership to maintain and attract U.S.-based international trade activity.

Source: http://www.ftzcorp.com/Whatis.htm


Establishment of Foreign-Trade Zones

To encourage and expedite U.S. participation in international trade To foster dealing in foreign goods imported not only for domestic

consumption but also for re-export after combining with domestic goods

To defer payment of duties only until goods are entered into the commerce of the U.S.


Foreign-Trade Zones are established:

What activity is permissible in a Foreign Trade Zone?

In a ZoneMerchandise may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed and destroyed

Retail Trade is ProhibitedPrince George’s County Economic Development Corporation

1100 Mercantile Lane Suite 115A Largo, MD www.pgcedc.com

FTZ Benefits

Duty is deferred for products admitted to the FTZ

Duty is eliminated on products imported to and exported from FTZ outside the US

Duty is eliminated on products admitted and subsequently destroyed within the zone

Duty is reduced on imported products admitted to the FTZ due to inverted tariffs


FTZ Benefits (cont.)

Merchandise may be transferred from zone to zone, extending the period of deferral

Users may obtain permission from Customs to move merchandise directly from the port of entry of the FTZ

Weekly entry and export is available to reduce administrative reporting

Duty is deferred on production equipment admitted to the FTZ for assembly and testing until placed in use


Inventory Tax Exemption

100% exemption from personal property assessments for commercial inventory, manufacturing/R&D inventory and manufacturing /R&D machinery within the FTZ (2005/2006 tax year and continuing until changed).


Current Trends

Manufacturing volumes in many sectors are moving offshore, particularly Asia.

Companies are mapping their supply chain to reflect commodity flows, transportation, labor and proximity to customers.

Supply chain consolidation is supporting “Big Box” regional distribution over smaller feeder warehouses that supply fewer customers.

Big Box distribution by importers combined with a 2000 Amendment to the Foreign-Trade Zones Act providing for weekly entry is spurring growth in the program by a new profile of users.


Opportunities

Over $200 billion (in value) of merchandise is received at FTZs annually.

Duty may be payable in accordance with the inverted tariff applicable to the finished product as removed from the zone, depending upon which is lower.

Business-to-Business seamless transactions reducing supply chain cycle time – direct delivery, weekly entry and weekly export.

Communities can retain existing jobs, attract new jobs and gain developer investment in the local community


Aerial view photo

Prince George’s County Economic Development Corporation

Master Plan

Prince George’s County Economic Development Corporation

Steeplechase 95International

Business ParkForeign Trade Zone 63

Description of the Site

Steeplechase 95 International Business Park is a 110-acre mixed-use development located at the Capitol Beltway (I-495) and the new Ritchie Marlboro Road interchange.

The business park offers individual sites that can accommodate buildings from 50,000 to 500,000 square feet, excellent access, visibility, and ample amenities


Proposed Amenities at Steeplechase 95 International

Business Park

Restaurants Banks Gas and Convenience Stores Offices for International

Agencies (conceptual) New Product Exhibition Space

(conceptual) Meeting Space (conceptual) Small Trade Offices with

Shared Services (conceptual) Advanced Telecommunications

systems

Landscaped Park-like setting w/ hiker-biker trails (conceptual)

Video conference Suite (conceptual)

Secure and Well lighted common areas

WiFi Internet access (conceptual

Supporting Trade Facilities and Operations (conceptual)

Public Transit Accessibility On Site-Parking


Proposed Amenities at Steeplechase 95 International

Business Park


INTERNATIONAL TRADE SERVICES BUILDING 220 room 4-star hotel Hotel condo units serviced through the concierge 75,000SF+ office space to include an 11,000SF office block to

accommodate an international incubator and small trade offices Meeting rooms Small exhibition space Underground structured parking

Premium Location

Located at I-95 in one of the most commercially desired areas in Prince George’s County, Maryland: – Foreign Trade Zone– Maryland Enterprise Zone – State of Maryland Priority Funding Area

Premium Property Premium Location Exceptional Opportunity


Premium Location

Over 5.5 million people in Baltimore-Washington Metro area

Accessible by I-95 Within an overnight freight haul to over 100 million

people 20-30 minutes from the 3rd largest US seaport (Port

of Baltimore) and BW Thurgood Marshall International (cargo operations)Premium Property Premium Location Exceptional Opportunity


Provides a Gateway to:

The North/South Corridor– I-95 (Florida to Maine)– I-70 (Ohio Valley)

The Port of Baltimore Baltimore Washington Thurgood Marshall

International Airport (BWI) Dulles International Airport (IAD)


Preferred Market Sectors

Housing related industries Auto parts and related products Chemical Products Plastics Rubber Products Joinery Tubes Pigments Essential Oils Perfumery, Cosmetics,

Shampoos, Make-up Polymers Electronics

Polyethylene Polyurethane Petroleum resins Floor and wall coverings Plates and sheets Wood, cork, and straw products Nickel Specialty steel Aluminum

Products Medicines Clothing Medicines Aerospace


Maryland’s Manufacturing Incentive Package

No gross receipts tax for manufacturers No sales tax on:

– capital manufacturing machinery and equipment– tangible personal property– equipment or materials used or consumed in manufacturing– Gas, electricity, steam, oil or coal consumed directly or

predominantly in a production activity No State or business personal property tax No income tax on foreign dividends (if corp. owns more than 50% of

subsidiary)


Maryland Enterprise Zone Program

The real property tax credit is 80% of the taxes due on the increase in assessed value as a result of the capital improvements in the property over the first five years, decreasing 10 % annually during the following years

The income tax credit is a one-or three-year credit for hiring new employees.

– Generally, $1,000– Economically disadvantaged, $6,000


Maryland Research and Development Tax Credit

Basic R&D Tax Credit– 3% of eligible R&D expenses that do not exceed

firm’s four year average Growth R&D Tax Credit

– 10% of eligible R&D expenses that do not exceed the firm’s four year average


Other Tax Credits

Maryland Job Creation Tax Credit Maryland Disability Employment Tax Credit Employment Opportunity Tax Credit for

Employers Work Opportunity Tax Credit (Federal)


Contact

Prince George’s CountyEconomic Development Corporation1100 Mercantile Lane, Suite 115A

Largo, MD 20774Phone: 301-583-4650

Email: [email protected]


mailto:[email protected]



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Prince George’s County’s Foreign Trade Zone 63

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