TYLER, Texas (KLTV) — The U.S. Department of Commerce has approved a free zone program in Smith County.
On September 1, the Tyler Economic Development Council (TEDCO) received the approval letter.
“We need to show our businesses and businesses that are considering investing here in our community that they can make more money here than anywhere else they are considering, and that’s just another piece of the puzzle” , said the president of Tyler Economic Development. Council Scott Martinez said.
Martinez said a free zone allows a company to transport a foreign good without paying the initial international tax. For example, for a company that has a piece of equipment shipped overseas, “if you enter it into a free zone and that company participates in a free zone program, it will not be taxed until it leaves, she will therefore be able to postpone this duty.
TEDCO has been working for two years to establish the Smith County Foreign Trade Zone. The zone will help mitigate supply chain disruptions. “If you need to stock a component, you don’t have to pay taxes or honor those rights until you actually use it. So you can mitigate your supply chain by being able to hypothetically warehouse that component until you actually use it.
The program can also benefit the whole community: “If someone works for a manufacturer, for example, he shops in stores, he eats in restaurants, he is at his church, so it benefits a lot the community.” Martinez said.
TEDCO is planning a meeting on October 18 for companies interested in learning more about the free zone.
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