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FOREIGN-TRADE ZONE (FTZ) LONO REQUESTS

Learn about the benefits and regulations of Foreign Trade Zones (FTZ) in the US, including duty deferral, tax exemptions, and supply chain management. Explore how FTZs can help improve import expenses and facilitate international trade, creating jobs in the US. Find out how Alliance Corridor, Inc. is utilizing FTZs for GE Transportation, Samsung, and IDI projects, enhancing marketability of vacant spaces with FTZ LONO requests. Contact Steve Boecking, Vice President, for more information.

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FOREIGN-TRADE ZONE (FTZ) LONO REQUESTS

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  1. FOREIGN-TRADE ZONE (FTZ) LONO REQUESTS Steve Boecking Vice President Alliance Corridor, Inc. 13600 Heritage Parkway Fort Worth, TX 76177 817.224.6050 steve.boecking@hillwood.com FTZ Projects: GE Transportation Samsung IDI Hillwood Alliance Corridor, Inc.

  2. FOREIGN-TRADE ZONES (FTZ) “A Foreign-Trade Zone is a restricted-access site, in or adjacent to a Customs port of entry” Regulations of the FTZ Board (19 CFR Part 400) FTZ’s are considered “outside the US Customs Territory” Foreign and domestic merchandise can be stored or manufactured before formal Customs entry procedures FTZ’s are a trade program established by the US Congress in 1934 to create jobs and facilitate international trade in the US. Alliance Corridor, Inc.

  3. Alliance Corridor, Inc. Domestic Shipments Duty Deferred Exported Products No US Duty Paid Imported Products Held in FTZ Duty-Free FTZ

  4. Alliance Corridor, Inc. FOREIGN TRADE ZONE -Foreign Status Goods -Customs Cleared Goods US Customs Warehouse – Without FTZ Warehouse – Using FTZ

  5. FTZ STRUCTURE Foreign-Trade Zones Board U.S. Customs and Border Protection FTZ Grantee Operator Operator User User User User 5 Alliance Corridor, Inc.

  6. Benefits of FTZ • Defer Reduce or Eliminate Duty • Reduce Import Expense • Manage Inventory Tax • Improve Supply Chain • Quota Management • Repair Labeling Errors • High Security. January 21, 2013 Alliance Corridor, Inc.

  7. PART 400-REGULATIONS OF THE US FOREIGN-TRADE ZONES BOARD §400.16 Exemption from state and local ad valorem taxation of tangible personal property.Tangible personal property imported from outside the United States and held in a zone for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing, or processing, and tangible personal property produced in the United States and held in a zone for exportation, either in its original form or as altered by any of the above processes, shall be exempt from state and local ad valorem taxation. Alliance Corridor, Inc.

  8. Alternative Site FrameworkKey Points • Improve importers’ access to the benefits of FTZs • Minor Boundary Modifications (MBM) are now called Usage-Driven Sites (UDS) • UDS boundary approval is from the FTZB (DC) • Activation approval is from local CBP • Faster approval (30 days) provides a competitive advantage for economic development • FTZ 196 ASF approved by FTZB on 10/19/2010 Alliance Corridor, Inc.

  9. GE HLW 259 ac IDI HLW 3 bldgs

  10. GE Transportation • Manufacturer of locomotives and off-highway vehicles. • Inventory is 100% exempted by TFTE, so there is no negative impact to taxing revenues. • Building Investment $500mm • Building Size 1.17mm SF • Employees 650 • Wage Rates Competitive mfg wages • Inventory Tax Effect None (TFTE) Alliance Corridor, Inc.

  11. IDI Spec Building • Building is empty and requests FTZ LONO to enhance the marketability. • Building Size 730k SF Alliance Corridor, Inc.

  12. GE IDI

  13. GE Transportation and IDI Spec Building

  14. GE HLW 259 ac IDI HLW 3 bldgs

  15. HILLWOOD BUILDINGS IN ALLIANCETEXAS AG60 Vacating 06/2016 AG55 Samsung-228k sf Trican-82k sf Vacant AG58 Vacating 06/2016

  16. Hillwood AG60 Building Building will be vacated by Exel / Lego June 2016 Currently, AG60 is designated as FTZ under the ASF program. When Exel / Lego vacates, AG60 will lose the FTZ designation Hillwood requests FTZ LONO on the building to enhance the marketability of the pending vacant space Alliance Corridor, Inc.

  17. Hillwood AG55 Building • Building is 360,000 SF • Samsung/QuietSide 227,500 SF • Trican 50,000 SF (no need for FTZ) • Vacant 82,500 SF • Samsung/QuietSide is requesting FTZ LONO • Distributor of ductless air conditioners • 80% of the savings come from US Customs benefits • 90% of their inventory is tax exempt through TFTE • Impact to the NWISD is approx $17,500 / year • Hillwood requests FTZ LONO on the entire building to enhance the marketability of the vacant space Alliance Corridor, Inc.

  18. Trican Samsung

  19. Hillwood AG58 Building • Building is 175,000 SF • Animal Health 175,000 SF (no need for FTZ) • Thermadyne 100,000 SF (Vacating June 2016) • Hillwood requests FTZ LONO on the building to enhance the marketability of the pending vacant space Alliance Corridor, Inc.

  20. AG58 in ALLIANCETEXAS Animal Health

  21. Hillwood Land in Northlake 259 acres

  22. THANK YOU! Steve Boecking Vice President Alliance Corridor, Inc. 13600 Heritage Parkway Fort Worth, TX 76177 817.224.6050 steve.boecking@hillwood.com FTZ Projects: GE Transportation Samsung IDI Hillwood Alliance Corridor, Inc.

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