Detroit FTZ Annual Report

DETROIT, April 8 /PRNewswire/ -- Greater Detroit Foreign Trade Zone, Inc. (GDFTZ) zones handled significant values of business in 2009, despite the recessionary economy. Goods valued at $9.41 billion, down from 2008's 10-year high of $12.7 billion, were shipped from Detroit-area FTZs.

In 1997 – the last year domestic automakers used the zones program – a volume of goods worth a record $34.4 billion was forwarded. Since that time, foreign-trade zone use by the automotive OEMs (perennially the largest user of foreign-trade zones) has been in decline in the United States. Changes in GATT reduced or eliminated significant trade barriers, allowing most imported components used in the manufacture of automobiles to enter this country duty-free. Exports to other countries in 2008 from Detroit zones equaled $604 million.

In 2009, general-purpose zone activity was again the highest it's ever been. While the value of goods forwarded in 2009 of $3.1 billion equaled the 2008 total, merchandise received by Detroit zones was valued at a record high $11 billion. The 32 active zones served 43 firms and handled 3,600 commodities from 20 different foreign countries. The value of exports to other countries from those zones equaled almost $519 million-another all-time high.

During 2009, one subzone was operation in an automotive manufacturing facility, the AutoAlliance International plant in Flat Rock. Marathon Petroleum Company, L.L.C., in Detroit and Wacker Chemical Corp. in Adrian, Mich., operated the other active subzones. Thirty-two general-purpose zones served a diverse range of companies during 2009 at locations in the city of Detroit and in other area locations including Romulus, Riverview, Melvindale, Taylor, Temperance, Troy, Wyandotte, Lincoln Park, Hamtramck, Highland Park, Warren and Mt. Clemens.

Active general-purpose zones included the Detroit International Bridge Co.; Progressive Distribution Centers, Inc., in Detroit and Melvindale; W.F. Whelan Co. in Romulus and Taylor, Metro International Trade Services, Inc., with 22 sites in Romulus, Riverview, and Detroit, among others; and Northwest Airlines, Inc., at Metro Airport. Additional zones were active last year at Empire Electronics in Troy, Michelin North America in Temperance, and BP Products in Taylor.

Foreign trade zones permit foreign and domestic goods to be stored, distributed, combined with other foreign or domestic products, or used in manufacturing operations while in the zone. No Customs duty is paid on gods in a foreign trade zone until they are transferred to U.S. commerce. The zones encourage the export of goods since imported goods may be exported from a zone duty-free.

Detroit zones are licensed by Greater Detroit Foreign Trade Zone, Inc., a non-profit corporation administered by the Detroit/Wayne County Port Authority.

SOURCE Detroit/Wayne County Port Authority