When Fremont-based RK Group proposed establishing a General Purpose Foreign Trade Zone (FTZ) in its 190,000 sq. ft. logistics/warehouse facility, we were behind them 100 percent. The benefits of the program are well-documented, and we think it’s an important tool that businesses can use to increase global competitiveness.

What is a “Foreign Trade Zone,” you ask?

Simply put, an FTZ provides users — including importers, exporters, manufacturers, and distributors —with cost-saving benefits and logistical efficiency. Companies can delay, reduce, or even eliminate duty payments on imported merchandise.

Effective December 1, 2014, U.S. Customs and Border Protection has activated RK Group’s Foreign Trade Zone, and as a General Purpose FTZ, it is available for multiple activities and users.

Prior to the RK Group’s designation, companies had to travel to San Jose or Oakland to utilize a General Purpose FTZ. This is a big win for Fremont businesses, many of whom are already involved with international trade.

In addition, recent modifications to the FTZ program have simplified the formerly rigorous application process, making it much easier for individual companies to set up their own facilities as FTZs if the scale of operations warrants it. Let’s connect if you are interested in pursuing this for your business.