US Customs and Border Protection and the city of San Diego have approved plans to establish a foreign trade zone (FTZ) at the port’s Tenth Avenue Marine Terminal.
As an FTZ, the terminal will be a designated location where foreign and domestic merchandise is generally considered to be outside of the US Customs territory.
“Shippers and businesses will have a secure area with reduced or eliminated duties on imported and exported cargo in the form of duty deferral, which allows for cash flow savings until cargo is imported and exported to and from the USA,” said the port.
Currently, the San Diego region has 19 FTZ sites with most of them operating out of warehouses. The port of San Diego said that it is the only cargo terminal location in San Diego County that offers a waterborne component with access to ships.
The 96-acre (39 ha) Tenth Avenue Marine Terminal regularly handles project cargo, as well as wind power and breakbulk commodities, added the port.