Region bids to boost foreign trade zone
St. Louis Post-Dispatch
October 4, 2010
By Tim Logan
In a bid to boost the region's place in an ever-more-global economy, St. Louis City and County are asking the federal government to make the entire core of the metro area a duty-free Foreign Trade Zone.
Mayor Francis Slay and County Executive Charlie Dooley Monday signed an official letter of request to the Commerce Department agency that decides these things, asking that businesses across the entire city and county be made eligible for Foreign Trade Zone benefits.
What does that mean?
It means that - as long as the St. Louis County Port Authority approves - any business in the city or county would be able to receive, store, assemble and "re-export" products without paying federal Customs duties. Depending on the industry and type of business, that can reduce costs by several percentage points or more, said Scott Taylor, an attorney who's consulting on the project.
It's the sort of thing that could help boost St. Louis' efforts to attract Chinese air cargo and related investments, said Slay, but that will also help existing companies here boost their export business.
"The Foreign Trade Zone is an important step in leveling the economic playing field," he said.
The program has been around since the '30s, but typically applied only to specific zones around ports and airports, or to specific manufacturers who applied on their own. Last year, the Commerce Department changed the program to allow for broader footprints.
"It makes the program much more accessible," Taylor said.
So far, 13 zones have received the broader distinction, including one in Louisville that recently expanded from about 1,000 acres to encompass six counties. About 20 more have applications pending, including Chicago, Indianapolis and Columbus, Ohio.
St. Louis' application has been filed - the letter from Slay and Dooley will be delivered on Thursday - and Taylor said he expects approval within six to eight months, though businesses can start seeking inclusion in the zone immediately.
What's less clear is how long it'll take to see results.
Just two years ago, the Commerce Department approved a then-massive expansion of the region's Zone to include about 825 acres around Lambert-St. Louis International Airport. So far, that effort has borne little fruit. But, then, local officials note that the last two years have been particularly tough ones.
"Eventually this economy is going to turn around," he said. "When it does, we want to be in the right position."
