5/27/2014

Industrial Park in Neosho, Missouri Seeks Foreign-Trade Zone Status

 

Industrial and development parks through out the United States are discovering that Foreign-Trade Zone status (FTZ) can be a beneficial tool for bringing new economic development to their area.  Read why Neosho, MO is seeking a Foreign-Trade Zone.

Industrial and development parks through out the United States are discovering that Foreign-Trade Zone status (FTZ) can be a beneficial tool for bringing new economic development to their area.  In the case of Neosho, MO―attract jobs, jobs and more jobs to their area is the ultimate goal to why they are seeking Foreign-Trade Zone status. A recent interview with KOAM7, Neosho Economic Development Director, Michael Franks explains how the Neosho Area Business and Industrial Foundation, Incorporated envisions an FTZ working to bring additional jobs to Neosho.

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Neosho Works to Create Foreign Trade Zone to Lure Manufacturers

Updated: May 13, 2014 5:33 PM CST   By Lisa Olliges, Reporter and Weekend Anchor, KOAM7

NEOSHO, MISSOURI -   Applications are being filed to turn a big part of the Neosho, Missouri industrial park into a foreign trade zone.

The goal is to lure companies and create jobs.

Jarden Consumer Solutions has trucks rolling in and out with products it distributes. Some come from overseas.  Jarden is a stand alone foreign trade zone.  And now economic development officials hope to turn much of the industrial park into a foreign trade zone too.

Neosho Economic Development Director Michael Franks says, “If there’s a duty on an item you bring into this country,  then that duty is not due to be paid as long as that item is in the foreign trade zone. Once it exits the foreign trade zone the duty is to be paid.”

The zone is designed to help manufacturers.

Companies like K and S Wiring or LazyBoy who import certain parts could lessen or even eliminate the import duty.

Franks says, “Now if they shipped it directly out, the duty would have to be paid. But, if they incorporate it inside a chair for example, and add a whole lot of domestic content and value to it, then the duty might be reduced. Then we keep the jobs in Neosho that do all the assembling of the chairs but at the same time we keep LazyBoy competitive in the marketplace. So you don’t bring the whole chair over from china.”

While the zone would benefit existing industries, of its 275 acres forty percent is undeveloped and becoming a zone could make that more marketable.

Franks says, “There will be new warehouses that will be built there over time as sources of distribution. And I believe there will be manufacturers and existing manufacturers who will want to locate here in order to take advantage of the foreign trade zone to make them competitive in their field.”

And that leads to the ultimate goal, employment opportunities.

“There’s no question this is a jobs related initiative on our part,” says Franks.  “It is about keeping jobs and about growing jobs that’s what it is totally about for us.”

The effort isn't costing the city.  Application fees have been paid by the Neosho Area Business and Industrial Foundation, Incorporated.

If approved by the Springfield foreign trade zone, the application goes to the U.S. Department of Commerce.

 

KOAM7. (2014). Neosho Works to Create Foreign Trade Zone to Lure Manufacturers. Retrieved from http://www.koamtv.com/story/25507791/neosho-works-to-create-foreign-trade-zone-to-lure-manufacturers

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