For Release: Monday, October 7, 2003
Contact: David Gillies: 202-225-5661

COSTELLO ANNOUNCES FOREIGN-TRADE ZONE EXPANSION FOR THE TRI-CITY REGIONAL PORT DISTRICT

Washington- U.S. Congressman Jerry Costello (D-IL) announced today that the Tri-City Regional Port District's Foreign-Trade Zone #31 (FTZ 31) has been expanded to include the Gateway Commerce Center and River's Edge Industrial Park in Madison County and MidAmerica Airport in St. Clair County.

The expansion should encourage business development because FTZs are considered to be outside of U.S. customs territory for the purpose of customs duty payment. Goods entering FTZs are not subject to customs tariffs until the goods leave the zone and are formally entered into customs territory. Merchandise that is shipped to foreign countries from FTZs is exempt from duty payments.

"Expanding the port's foreign-trade zone is an important tool in facilitating international trade," said Costello. "The Metro East has the facilities and infrastructure to be a major trade center. Businesses should be attracted to the advantages of operating in FTZ 31, which will bring jobs to the area."

The provision is especially useful to firms that import components in order to manufacture finished products for exports. There is no time limit on how long goods may be stored in a FTZ. A variety of activities may take place in the zone, including assembling, packaging, destroying, storing, cleaning, exhibiting, re-packing, distributing, sorting, grading, testing, labeling, repairing, combining with foreign or domestic content, or processing.

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