 |
|
 |
 |
WHAT IS AN FTZ?
FTZs are facilities which allows foreign goods to arrive in Canada and be stored, duty and tax free, prior to onward shipment to another economy. Gander's Foreign Trade Zone allows for the value-added manipulation of goods to take place in a tax and duty free environment without tying up working capital.
|
"The Gander Foreign Trade Zone is the east coast's premiere low-cost, value added distribution gateway for goods moving between Europe and the Americas."
|
DUTY AND TAX FREE PROCESSING
The Gander Foreign Trade Zone allows goods to be brought into Canada without the prepayment of duties or taxes. If the goods are re-exported, no duties or taxes ever need to be paid - a major competitive advantage for using Canada as a base to serve the NAFTA marketplace.
Gander is the ideal hub for a distribution and value-added centre for products destined for the NAFTA economy. As the closest practical North American point to Europe, its location reduces expensive air transport costs. Economic incentives make Gander a very low cost location for distribution or light manufacturing facilities.
Facilities located at Gander can escape prepayment of high and inverted duties on goods. Quota limitations can be managed to balance optimal shipment and purchase quantities with market allowances. Off site processing of goods is allowed without penalty or paperwork.
Gander is the FTZ for the 21st Century - price competitive, tax and duty free, paper free, strategically located - your North Atlantic Supply Chain Opportunity.
By locating within the Gander FTZ, businesses can:
- Use Canada as a base for distributing products within the NAFTA economy;
- Avoid inverted U.S. tariffs;
- Take advantage of government's economic incentives;
- Improve cash flow by not paying duties or taxes up front
- Reduce duties and manage NAFTA quota restrictions.
In Gander, companies can benefit from all the advantages of operating in an enhanced trade zone through the Duty Deferral and Export Distribution programs. Both programs offer tax exemptions on imported goods used for export. Federal, provincial and municipal governments have pledged financial and policy support to aggressively develop its lands and manufacturing operations based on Canada's new Foreign Trade Zone legislation. The federal government offers support through wage subsidies, export development programs and counselling, investment support, financing assistance, capital financing and marketing. The provincial government offers up to 15-year tax holidays for qualifying business. The Town of Gander offers a 10-year tax holiday to match the province for new ventures.
|
GANDER: STRATEGICALLY LOCATED FTZ AND DISTRIBUTION POINT
Gander has many business and geographic advantages. The community is strategically situated between Europe and North America along the major connecting air route. New Canadian FTZ regulations have streamlined operations at Gander, making it easier and more cost-efficient than operating within a U.S. FTZ. Existing air cargo carriers at the site provide it with international connections and cargo. Custom sized lots and Newfoundland's highly skilled workforce are available at competitive rates. For European companies exporting to NAFTA, Gander is the best value distribution centre.
|
GANDER MANAGEMENT AGGRESSIVELY DEVELOPS OPPORTUNITIES
Gander International Airport has a new operator focused on business development through strategic partnerships with its clients. For the new airport authority, a key priority is aggressively developing its lands for distribution and manufacturing operations using Canada's new Foreign Trade Zone legislation. The new authority's goal is cost-effective business solutions for FTZ clients.
"We are an airport focused primarily on our clients," said Gander International Airport Authority President & CEO Gary Vey. Since taking over operations, the Airport Authority has launched its marketing and development push with the support of tenants, clients, and government partners.
|
FEDERAL, PROVINCIAL, AND MUNICIPAL SUPPORT INITIATIVES
The federal, provincial and municipal governments have pledged financial and policy support to Gander through a number of different initiatives, including wage and training subsidies, as well as other support.
Federal government. The federal government offers support through wage subsidies, export development programs, investment support, financing
assistance, export counselling, capital financing, loans, and marketing projects.
Province of Newfoundland and Labrador. The Province offers up to 15-year tax holidays, market development funding, and seed equity.
The Town of Gander. The municipality offers a 10-year tax holiday to match the Province for new ventures.
|
FTZ COMPETITIVENESS THROUGH NEW CANADIAN POLICY
Until recently, FTZ operations in Canada were complicated, burdened by paperwork, limited to specific types of activities and firms, and did not allow value-added Canadian content. Recently, however, the government passed a package of regulatory changes to create the Export Distribution Centre (EDC) Program, effectively allowing the creation of Foreign Trade Zones in Canada.
Gander International Airport is at the forefront of this new program; actively facilitating the establishment of EDCs. The new program supports the attraction and development of logistics, distribution, and value-added activities at or near the airport.
|
GANDER:
THE MOST COST-EFFECTIVE DISTRIBUTION POINT FOR THE NAFTA ECONOMY
STRATEGIC OPORTUNITY
- Strategically located between Europe and the U.S.
- New Canadian EDC legislation allows exporters to complete FTZ functions with only an electronic audit trail - there is no need for expensive security providers requiring significant capital costs.
- Available international air cargo and cargo lift. Daily average of 13 transatlantic flights operate through Gander.
- Assembly and value-added activity allowed, as well as inspection, relabelling, repacking, long-term storage, destruction, sorting, testing, and other activities.
- Closest practical NAFTA airport to Europe on the North American highway system via the Trans-Canada highway.
- Gander is positioned to act as a North Atlantic distribution centre with its strategic position comparable to Anchorage.
- The airport is the only major U.S. or Canadian airport which has
no curfew or noise restrictions.
- Custom land lots available on site. Competitive land prices with incentives available.
INCENTIVES
- Authority is actively developing its lands for cargo distribution opportunities.
- Airport has federal, provincial, and municipal government support.
- Up to 15-year Provincial and municipal tax holidays available.
- Training, wage and building subsidies available.
QUICKLY GROWING PROVINCIAL ECONOMY
- Recent KPMG study shows that Canada is the lowest cost developed country in which to do business.
- Newfoundland and Labrador is one of the lowest cost Canadian provinces in which to do business, and one of the fastest growing economies.
LAND AND COMMUNITY RESOURCES
- Abundant and reliable water supply for processing and manufacturing.
- A community with a high quality of life and complete support services including full service hospital and a number of post secondary institutions.
LAND LOTS AVAILABLE AT COMPETITIVE PRICES WITH INCENTIVES
Gander International Airport is the ideal location for any business supporting distribution from Europe and the Middle East to North America and the Caribbean. Land is available for development on the Gander International Airport site. Available locations have direct airside access or are groundside on the airport.
POTENTIAL LAND USES INCLUDE:
- Distribution Centres
- Order Fulfillment Facilities
- Light manufacturing
|
NEWFOUNDLAND AND LABRADOR HAS A STRONG, GROWING ECONOMY
Newfoundland and Labrador, Canada's fastest growing economy, is buoyed by oil and mineral development. The construction of the Voisey's Bay nickel, copper and cobalt deposit by Inco Ltd. and increased oil production at the Hibernia and Terra Nova oil fields will all positively impact the economy. These and other export-related developments will support economic development while helping to ensure low tax levels.
|
DUTY DEFERRAL PROGRAM
The Canada Customs and Revenue Agency can waive, postpone or refund duties and taxes normally paid on imported goods. The Duty Deferral Program has three options, which can be used individually or in combination, to suit your business needs.
|
BONDED WAREHOUSE
Place imported and domestic goods destined for export in an appropriate location for up to four years. Duties (including taxes) are payable only on the portion of the goods that enter into the Canadian economy. Minor processing is allowed.
|
GOODS MAY UNDERGO THE FOLLOWING VALUE-ADDED ALTERATIONS:
- Labelling and marking
- Packaging and repackaging
- Testing and separating defective from prime quality goods
- Diluting, cutting, slitting, trimming, and filing
- Disassembling or reassembling goods, which have been disassembled for packing, handling, or transportation.
|
DUTIES RELIEF
- No duties for imported goods destined for export
- Further manufacturing and processing allowed
- No security bonds required
(Drawback, refund of duties and taxes paid once goods have been exported.)
|
|
|
 |
