Port Houston Promotes International Commerce Through FTZ 84
Texas is a business hub with a growing consumer base. It is one of only nine U.S. states that provides business tangible personal property (TPP) tax relief on inventory, supports trade, and encourages foreign commerce by utilizing the Foreign Trade Zones (FTZ) Program. This program was put into place by the federal government in 1934. It was set up to expedite and encourage the nation’s foreign commerce, lower the costs of U.S.-based businesses, and grow and maintain the employment and investments these businesses bring to the region. Foreign trade zones are also beneficial since merchandise may be brought into an FTZ without formal customs entry, import quotas, and other restrictions.
Port Houston is the grantee of Foreign Trade Zone 84 (FTZ 84), which includes many privately-owned and port-owned sites throughout Harris County, TX. As the grantee of FTZ 84, Port Houston manages and administers the program, providing access to various businesses, including storage facilities and manufacturing sites, that can benefit from reduced inventory tax rates and duty reductions.
Port Houston owns, operates, and manages the eight public wharves and terminals along the Houston Ship Channel, including the area’s largest breakbulk facility and two world-class container terminals, and is the advocate and strategic leader of the Houston Ship Channel. Companies often choose Port Houston to be near the busiest waterway in the nation, the Houston Ship Channel. This is an efficient gateway for customers and grants access to major distribution centers and industry service providers in the Houston region. The Channel is also now undergoing an expansion, known as Project 11, that will provide a safer and more efficient waterway for future vessels.
FTZ 84 drives job creation and contributes to the local economy. Recently, the Houston area experienced a massive boom in demand, with an increase in relocations and warehouse expansions throughout the region.
As additional manufacturing goods, electronics, machinery, energy products, and more flow through the Port, added investments in land near or at Port Houston property have transformed communities and positively impacted local economies. In fact, member sites of FTZ 84 include 201 businesses, employ approximately 13,000 individuals, and are responsible for roughly $10 million in exports from facilities operating under FTZ procedures.
As the population continues to grow, FTZ 84 has seen a vast increase in authorizations as more large importers and exporters learn all the benefits of utilizing FTZ 84.