Sierra Vista Economic Development FoundationVENTURES FOR TODAY & TOMORROW

This continues to be a priority as the SIR process is nearing its completion & additional work on getting our region UAS ready is underway.

Unmanned Aircraft Systems

The Arizona Commerce Authority (ACA) is ready to run the program using Sierra Vista as a beta test site.

Certified Sites

3Sierra Vista EDF is working with various entities to move mission development forward on Fort Huachuca.

Fort Huachuca Mission Development

Sierra Vista EDF continues to host quarterly Economic Development Roundtables with leaders from Cochise County & Safford in an effort to create economic development synergy .

The latest assembly discussed how Cochise County can partner with the communities to assist in their economic development efforts.

Each meeting features a guest from the Arizona Commerce Authority.

2

1

Well-executed ventures take time

Projects Gaining Speed

4 Economic Development Roundtable

Site Selector Contact

Business Complex Tenants

are Expanding

A New Round of West-End Façade

Loans

Continuing to do what’s working

The Success of Ongoing Activities

Leveraging knowledge and resources

Partnerships

- The first meeting

will take place in

July to review

applications.

- Governor’s Economic Development Conference Planning Committee

- Military Communities

- Aerospace &

Defense

- Supply Chain

Database

Expanding the Zone & Industry Opportunities

Foreign Trade-Zone 139

Sierra Vista EDF made contact with the Department of Commerce International Trade Administration (ITA) to communicate their intent to expand FTZ 139 & to receive direction on how to move forward.

Sierra Vista EDF submit the ASF application for review & approval by the Department of Commerce International Trade Administration. The ITA approved the ASF application to include all of Cochise County in the FTZ 139 designation.

Sierra Vista EDF received notice that the expansion of Foreign Trade-Zone 139 has been officially approved with the new service area description.

The ASF proposed service area description was sent to U.S. Customs & Border Protection (CBP) by the ITA for their review & approval. CBP rejected the proposed service area due to limited manpower.

Sierra Vista EDF attempted to gain support from Cochise County to expand FTZ 139 through the request of a concurrence letter. Sierra Vista EDF’s efforts were unsuccessful after 3 months of attempts & an alternate path in the application process had to be taken.

Sierra Vista EDF posted a legal notice in the Sierra Vista Herald to allow public comment for up to 30-days in regards to the expansion of FTZ 139.

A new service area description was prepared & Sierra Vista EDF Executive Director Mignonne Hollis met with CBP Port Director Elias Villarreal to reach an agreement on moving forward with the expansion of FTZ 139. CBP approved the new service area description & notified the ITA of their endorsement.

✓

3

6

5

4

7

2

1

The process from start to finishForeign Trade-Zone 139 Expansion

Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States’ version of what are known internationally as free-trade zones.

The Advantages of Using a Foreign-Trade Zone:

1. CBP duty and federal excise tax, if applicable, are paid when the merchandise is transferred from the zone for consumption.

2. While in the zone, merchandise is not subject to U.S. duty or excise tax. Certain tangible personal property is generally exempt from state and local ad valorem taxes. Valorem means “according to worth” & is a percentage of the value of products, services, or property.

3. Goods may be exported from the zone free of duty and excise tax.

4. CBP security requirements provide protection against theft.

5. Merchandise may remain in a zone indefinitely, whether or not subject to duty.

6. The rate of duty and tax on the merchandise admitted to a zone may change as a result of operations conducted within the zone. Therefore, the zone user who plans to enter the merchandise for consumption to CBP territory may normally elect to pay either the duty rate applicable on the foreign material placed in the zone or the duty rate applicable on the finished article transferred from the zone whichever is to his advantage.

7. Merchandise imported under bond may be admitted to a FTZ for the purpose of satisfying a legal requirement of exporting the merchandise. For instance, merchandise may be admitted into a zone to satisfy any exportation requirement of the Tariff Act of 1930, or an exportation requirement of any other Federal law (and many state laws) insofar as the agency charged with its enforcement deems it so.

According to the Department of Homeland Security . . . .

Advantages of the FTZ Designation

Time, connection-building, and monetary support

What Moving Forward Will Entail

1. Responsible for compliance with Customs regulations relating to Zones.

2. Responsible for day-to-day operation of the Zone which can include warehousing, storage, transportation, distribution, and manufacturing.

3. May enter into agreements with users.

Operator or Subzones:Administrator:

Uses a Zone for its benefits and pays the Grantee or Operator for their services such as rent on facilities, storage, handling, or manufacturing.

Users:

1. Hired for the purpose of overseeing or marketing the Zone. Marketing can easily range from 30K – 50K.

2. A source of technical expertise on Customs and FTZ issues.

321

Implimentation of Steps:

Foreign Trade-Zone 139 will require a considerable amount of time, connection-building, and monetary support before it is operational. This will have to be accomplished by reaching out to organizations withing the city, county & state that have the expertise and resources applicable to move the Zone forward.