FOREIGN TRADE ZONE
Our Foreign Trade Zone (FTZ) enables companies involved in handling or moving goods to reduce and eliminate normal trade barriers, such as tariffs, quotas and compliance costs.
Within the FTZ, located at Edmonton International Airport, a company imports raw materials or partially finished goods, completes manufacturing and exports the products throughout Canada, North America or internationally.
Through Port Alberta, a business can access the FTZ Task Force which may be comprised of representatives from the following federal government departments:
→ Canada Border Services Agency
→ Canada Revenue Agency
→ Transport Canada
→ Global Affairs Canada
→ Western Economic Diversification
Port Alberta’s Foreign Trade Zone (FTZ) offers benefits to businesses through the application of the Duty Deferral Program which helps to alleviate cash-flow constraints that result from the imposition of import duties. The FTZ also has programs that provide Goods and Services Tax (GST) payment relief for businesses that may experience cash flow constraints, due to the delay in receiving the Input Tax Credit, because they are primarily export based and do not collect GST from domestic sales.
The following briefly describes how Duty Deferral Program will benefit entrepreneurs located Port Alberta’s FTZ:
→Duties Relief Program (DRP): allows for relief from the payment of duties at the time goods are imported.
→The Drawback Program (DP): duties paid on imported goods that are incorporated into goods manufactured that are subsequently exported may be refunded.
→The Customs Bonded Warehouse Program (CBWP): licensed and regulated facilities may be set up into which imported goods may be moved and the payment of duties and taxes is deferred.
FTZs also have programs to assist businesses that primarily export, with the cash flow situation resulting from paying GST on their production materials. The following are descriptions of the programs:
→ Export Distribution Center Program (EDCP): businesses that engage primarily in export sales (90% of revenue) can purchase certain goods without paying GST.
→ Exporters of Processing Services Program (EOPS): provides relief from the payment of GST on imports belonging to non-residents that are imported for purposes of processing, distribution or storage and that are subsequently exported.