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October 29, 2009

Auburn FTZ entices tenants

By The Mainebiz News Staff

Two Auburn companies are the first approved users of the city's Foreign Trade Zone, a federally designated status that provides tariff benefits to participating companies.

Logistics handler LynxUS and bulk transporter Safe Handling Inc. recently received approval from the U.S. Customs and Border Protection to apply FTZ benefits to their warehouses, according to a release from the Lewiston-Auburn Economic Growth Council.

An FTZ allows companies to defer paying duties on imported goods until they are sold domestically; if the goods are exported from an FTZ, the tariffs can be eliminated entirely. FTZ users can also pay lower tariffs if they warehouse raw materials, which are then finished or enhanced in some way before being shipped.

Since 2004, the LAEGC has led the effort to develop and promote the 760-acre FTZ, which encompasses many of the industries in Auburn, to enhance the area's growing transportation and logistics businesses. Earlier this month, LynxUS' warehouse operation was sold by Bisson Transportation to NEPW Logistics Inc., a public warehousing company based in South Paris that works primarily with the pulp and paper industry. According to the release, NEPW intends to meet government requirements to assume the FTZ benefits approved for LynxUS.

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