Fiscal Note
There is no direct budgetary effect of this resolution beyond the commitment of available staff time. Creation of a Foreign Trade Zone will provide waivers of federal duty and excise taxes to eligible companies that locate in zones and conduct international business.
Title
Supporting the Dane County Regional Airport's application to the Federal Foreign Trade Zone (FTZ) Board to establish a Foreign Trade Zone in South Central Wisconsin. Resolution also supports consenting to the inclusion of specific property currently owned by the City of Madison, but under contract with T. Wall Properties (called The Center for Industry and Commerce), inside the boundaries of the to be created Foreign Trade Zone.
Body
Preamble
The Foreign-Trade Zones Act of 1934, as amended (19 U.S.C. 81a-81u) was passed to establish zones that expedite and encourage foreign commerce. The subsequent regulations [Title 15, Chapter IV, Part 400 of the code of Federal Regulations (15CFR400), Pages 48-65 as Revised January 1, 1998] provide the legal framework for accomplishing this purpose in the context of evolving U.S. economic and trade policy, and economic factors relating to international competition. Once a Foreign Trade Zone is established, eligible business may locate inside the zone and begin international commerce. The process is officially implemented through the designation of geographical areas, where commercial merchandise receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise of every description may be held in the Zone without being subject to Customs duties and other ad valorem taxes. This tariff and tax relief is designed to lower the costs of U.S.-based operations engaged in international trade and thereby create and retain the employment and capital investment opportunities that result from those operations.
WHEREAS the future of the City of Madison's Place-Based Economy i...
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