Foreign trade zones (FTZ) are designated regions within a country where trade barriers such as tariffs are reduced or eliminated, and bureaucratic requirements are lowered for the purpose of attracting foreign investments and international business.
Canada’s FTZs allow companies to defer duty and GST payments on imported goods that are not sold into the domestic market, but are instead warehoused or distributed at a later date to the international market as part of a value-added product or a non-processed product.
Designating a FTZ can provide financial advantages to companies that export goods to other countries through the following programs: Duty Relief Program (DRP), Duty Deferral Program (DDP), customs-bonded warehouse program, Export Distribution Centre Program (EDCP) and Exporters of Processing Services Program (EOPS).
Currently, Canada has Foreign Trade Zones in the following locations:
- Winnipeg’s Centreport Canada
- Calgary Region Inland Port
- Edmonton’s Port Alberta
- Niagara, Ontario’s Niagara FTZ
- Sydney, Nova Scotia’s Cape Breton Regional Municipality FTZ
- Halifax Gateway
- Regina’s Global Transportation Hub
According to the federal minister responsible for trade, the Windsor-Detroit border that serves as the gateway to this region handles 25 per cent of trade between Canada and the U.S., for a total value of $882 billion.
Contact us today to understand how an FTZ can benefit your organization. We are strategically located at all FTZs and our trade professionals are ready to discuss this and other programs that can benefit your business.
Information provided by: NAFTA & Free Trade Dept. - Cole International