Rural Enterprises of Oklahoma, Inc. (REI) has announced a boundary expansion of Foreign Trade Zone #227, Durant. REI has been granted approval for expansion of the Zone to serve the Ardmore Airpark and Westport Industrial Park. The boundary expansion incorporates a total of 2,900 acres.
The FTZ program is the leading federal program being used by companies involved in international trade. The FTZ program lowers the costs of U.S.-based operations engaged in international trade allowing them to store, repackage, repair, manipulate, manufacture or process foreign merchandise in a Zone, free of tariffs and ad valorem taxes, while the merchandise remains in the Zone. The result is the creation and retention of U.S.-based economic activity.
The boundary expansion of the Foreign Trade Zone will be a big plus for us when we visit with prospective business and industry involved in international trade, said Wes Stucky, President, Ardmore Development Authority. Its an incredible new door of opportunity for business and industry to expand their markets globally and we appreciate REIs willingness to go through the laborious application process to accomplish the expansion.
The benefits of an FTZ are extensive. Duty deferral improves cash flow by deferring payment of duties until the goods are removed from the Zone. Duty elimination means duties are not paid on imported products, if re-exported, rejected, scrapped, destroyed or returned to the vendor and duty reduction allows a business to take advantage of an FTZ to reduce tariff.
The purpose of REIs General Purpose Foreign Trade Zone is to help Oklahoma businesses compete in the global marketplace and to safeguard and create jobs, Tom Seth Smith, REI President & CEO said. We are very excited about the possibilities the boundary expansion brings to Ardmore and we were very pleased to be able to assist a neighboring community.
Stucky noted the Trade Zone is part of the planned International Trade Center at the Airpark that will provide another tool for economic stability and growth. In todays uncertain times, it is particularly important to provide as many advantages and options as possible in order to encourage the retention and expansion of new and existing industries, Stucky said.
For more information about the Ardmore industrial parks, visitwww.ardmoredevelopment.com.