TGI granted free trade zone status in south Florida

MIAMI (Nov. 1, 2013) — Tire Group International L.L.C. has been granted Foreign Trade Zone (FTZ) 281-4 status for its Miami operations, effective Sept. 9.

The designation gives TGI the ability to defer, reduce and even eliminate costly customs duties on products brought into its U.S. distribution center for re-export, the Miami-based wholesaler said.

"We are proud to be one of the first four companies and the only tire distributor in the State of Florida approved to do business within the FTZ 281," said Orlando Delgado, chief operating officer for TGI.

TGI said that in August 2012, the U.S. Department of Commerce granted Miami-Dade County the authority to establish Foreign Trade Zone 281. Foreign trades — or free trade zones (FTZ) — are secure areas under U.S. Customs that are considered outside the Customs territory of the U.S.

Some benefits of this for businesses are: duty referral, insurance benefits, duty exemption, tax savings, international returns/quality control, etc.

TGI said a corporation using a foreign trade zone to import can defer taxes and duties on those materials and merchandise imported, until sale of the finished product is transacted.

Mr. Delgado said that, "as a company, we needed to undergo a series of comprehensive audits of our internal processes and systems.

"Having received approvals from the Foreign Trade Zone Board in Washington D.C., the Port of Miami and the United States Department of Homeland Security Customs and Border Protection agency (CBP) is an affirmation of the quality of TGI's staff and internal controls."

He added that obtaining FTZ status brings benefits to the company's customers "by being able to offer them a wider array of cost-effective and quality products and to the global manufacturers we deal it will further enhance their brands throughout Latin American & the Caribbean."

Mr. Delgado said this is just "one more way to show our customers and vendors our commitment to grow our business and to help our partners do the same."