Foreign Trade Zone Gets One Step Closer To China Hub
KTVI-Fox 2
October 4, 2010
By Charles Jaco
St. Louis City and County took another step Monday in their effort to make St. Louis a major player in international trade. They've asked Washington to declare the entire city and county a foreign trade zone. It's all about the dollars - or Euros, or Chinese Yuan. Declaring the entire city and county a foreign trade zone would save people here doing business with other countries lots of cash.
Here's how a foreign trade zone would work. A jet full of Chinese widgets would land at Lambert International Airport.
Trucks would haul those widgets to a St. Louis City or County importer who would then sell and ship them to a retailer.
Normally, an importer would have to pay import duties the second the cargo landed. In a foreign trade zone, he doesn't pay until he actually sells the cargo.
That could attract lots of businesses, especially if Lambert becomes an air cargo hub with China. Streamlining the foreign trade zone process across the city and county also could attract companies exporting to China.
What about the China hub itself? A Chinese delegation comes here later this month. They'll look at Lambert, the runways, the customs operation and the cargo bays. That's one of the final steps before two to three cargo flights a week from China to Lambert could start next year.
Monday's foreign trade zone move is part of the whole thing.
Why Lambert? Less congestion than, say, Chicago. Since a Chinese cargo 747 costs almost $15,000 an hour to operate, every minute saved in unloading is worth $250 and those savings add up fast.
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