Foreign Trade Zone
The Government of Canada granted Foreign Trade Zone Point designation (FTZVI) to the Vancouver Island Economic Alliance (VIEA) in September 2018.
FTZ -Whats the point An FTZ Point is one of Canada’s strategic locations for international trade where an organization with a mandate to promote local trade and foreign direct investment is uniquely supported by a single-point of access to information on relevant government policies and programs.
Anm Task Force with representatives from various government departments will be coordinated by ITT-VI to problem solve and to facilitate easy access to a suite of programs that make up them advantage:
Duty Relief Program – Relieves the payment of duties on imported goods that will eventually be exported either in the same condition or after being consumed, expended or used in processing other goods. This can have significant cash flow benefits for Island manufacturers.
Duty Drawback Program – Refund of customs duties paid for imported goods that will eventually be exported or used in manufacturing and then exported. This benefits businesses that have already paid duties and wish a refund.
Exporter of Processing Services Program – Qualifies companies to import goods belonging to non-residents without paying GST/HST as long as these goods are imported for processing, distribution or storage and are subsequently exported.
Export Distribution Centre Program – Provides relief of cash flow cost incurred by export businesses that add limited value when processing or distributing goods such as relabeling, repackaging, assembling or disassembling, inspecting, cleaning, etc. This especially benefits companies, for instance, that are importing goods and/or acquiring goods in Canada without paying GST/HST as long as the goods are later exported.
Customs Bonded Warehouses – Companies participating in the Customs Bonded Warehouse Program qualify for complete deferral of duty and taxes. When goods exit the warehouse, taxes are applicable. If goods are re-exported, there are no duties or taxes. The definition of a ‘warehouse’ is quite broad. It can be part of your office building, a stand-alone facility, or even a hotel conference room, and can be located anywhere within them Point – e.g. anywhere on Vancouver Island!
FTZ Point designation is just the beginning of a pivotal time during which Vancouver Island is assuming its role as a prominent component in Canada’s Asia Pacific Gateway.