County tries for Foreign Trade Zone status
County officials have begun a process that will result in Foreign Trade Zone status for Warren County.
If successful, the move will provide a number of benefits for local business and industry, according to director of economic development Don Rigsby. The venture is in conjunction with an application being presented by Chattanooga.
“The Industrial Development Board of McMinnville-Warren County is announcing an agreement with the Chattanooga Chamber of Commerce and the Foreign Trade Zone to add selected industrial sites in Warren County as a sub-zone to the Chattanooga Foreign Trade Zone application,” said Rigsby. “If the Chattanooga application is approved by the U.S. Department of Commerce, Warren County will become a free trade zone.”
Rigsby said Foreign Trade Zone status could have significant ramifications for the county.
“This designation will be a significant boost to Warren County Existing Industry and a major asset to the county in recruiting new industry,” Rigsby said. “Chattanooga is expanding their current application to include new industrial sites in Hamilton County and has agreed to add the Warren County sites.”
Rigsby explained how the system was established and how it functions.
“The United States Foreign-Trade Zones program is a federal program aimed at enhancing the competitiveness of U.S.-based companies engaged in international trade,” Rigsby said. “Companies using Zone procedures enjoy relief from tariffs and other forms of inventory taxes on goods and materials while they are within their Foreign-Trade Zone facilities. Companies based in the U. S. use Zones as a tool to adjust to today’s changing trade environment.”
According to Rigsby, there are two types of Foreign-Trade Zone environments: general purpose zones and subzones. Warren County will be designated a subzone of Chattanooga. Both zone environments can be used for manufacturing, processing, and distribution. Typically, a Foreign Trade Zone program will reduce the operational costs associated with customs duties.
Rigsby said this designation would put Warren County in a unique position in the region.
“It’ll attract new industry,” he said. “It’ll be a recruiting tool because we’ll be, basically, the only trade zone between Chattanooga and Nashville, other than a separate zone set up for Nissan. That’ll help companies such as warehousing and distribution type industries. People dealing with foreign markets. That’ll entice them, hopefully, since they will be able to operate in Warren County cheaper.”
Local industry leaders, like Bridgestone/Firestone plant manager Dennis Riggenberg, also feel the status will have a positive effect.
“It’s a great benefit,” Riggenberg said. “It’s got to be a big plus for Warren County. It is moving in the right direction, so I’m all for it.”
Though the county has considered trying to achieve trade zone status for some time, this is the first time the a viable plan has presented itself, encouraging local officials to take action. Rigsby said everyone from County Executive Kenneth Rogers and the TVA to local business organizations like the CEO Roundtable have been involved and played an integral part in the effort.