FOREIGN TRADE ZONES AND INLAND PORTS: A QUESTION OF SIZE

Although all domestic ports of entry are "entitle" to establish foreign trade zones under federal law upon meeting certain technical and economic requirements, the volume of international trade at inland ports is often marginal in terms of the need for zone services. Since many of these communities wish to use zones as a means of helping to attract new international-trade-related operations, their zone projects are often connceived for a small amount of activity at the outset and with an uncertain medium- and long-term outlook. The requirements of federal law and how they have been interpreted with regard to smaller zone projects are discussed. Recent interpretations and practices of the Foreign-Trade Zones Board and the U.S. Customs Service are discussed in terms of how they affect the feasibility of zones in inland areas that have an inherently smaller "zone-use base". A general analysis is presented of the first few inland zones. Some methods of structuring smaller zones to reduce and spread capital and operating costs are suggested. It is concluded that, whereas current federal procedures and practices make it possible even for smaller inland ports of entry to use zones in their economic development efforts, such communities should be mindful of the financial risks involved.

Media Info

  • Media Type: Print
  • Features: References;
  • Pagination: pp 34-40
  • Monograph Title: Inland waterway studies
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00330036
  • Record Type: Publication
  • ISBN: 0309031052
  • Files: TRIS, TRB
  • Created Date: May 21 1981 12:00AM