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Issue: 1050 Date: 10/7/2010

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Slay and Dooley apply for Foreign-Trade Zone restructuring - next step in quest for China hub

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        Slay and Dooley apply for Foreign-Trade Zone restructuring - next step in quest for China hub

        The region's two top executives -- St. Louis Mayor Francis Slay and St. Louis County Executive Charlie Dooley -- this Monday (10/04/2010) morning co-signed a letter that they hope is the next step in their quest to persuade China to locate a Midwest cargo hub at Lambert Field.

        The letter will accompany the region's formal application to the U.S. Department of Commerce in Washington to restructure the region's "foreign-trade zone'' (one of 274 nationwide) to make it easier and quicker for local companies to get approval to trade overseas. Companies situated within foreign trade zones avoid U.S. customs duties on "foreign products admitted into zones for storage, exhibition, assembly, manufacturing and processing."The region's two top executives -- St. Louis Mayor Francis Slay and St. Louis County Executive Charlie Dooley -- this morning co-signed a letter that they hope is the next step in their quest to persuade China to locate a Midwest cargo hub at Lambert Field.

        The letter will accompany the region's formal application to the U.S. Department of Commerce to restructure the region's "foreign-trade zone'' (one of 274 nationwide) to make it easier and quicker for local companies to get approval to trade overseas. Companies situated within foreign trade zones avoid U.S. customs duties on "foreign products admitted into zones for storage, exhibition, assembly, manufacturing and processing." In a Foreign-Trade Zone, goods held for export aren't taxed by state or local governments. Customs duties and federal excise taxes are deferred on imports.

        The special designation for the St. Louis area foreign trade zone would be the first in Missouri.

        Denny Coleman, head of the St. Louis County Economic Council, said he's confident that the St. Louis area will obtain federal approval for the special zone status, seen as a plus in the bid for the China Hub.

        Although federal approval may take eight months, the region is likely to be able within a month to help businesses apply for the foreign-trade tax breaks.

        Slay said at today's news conference that the special trade zone status would likely attract other businesses who might locate to the region for the express purpose of trading overseas at less cost.

        Dooley asserted that if the region snags a China hub for Lambert, the economic effect "could be a real game changer."

 
 






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