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Foreign-Trade Zones

A Foreign-Trade Zone (FTZ) is a designated area within U.S. borders which promotes domestic employment and helps U.S. firms compete in the global marketplace. An FTZ is located in or near a U.S. Customs port of entry, where foreign and domestic merchandise is generally considered to be international commerce. Foreign or domestic merchandise may enter this enclave without a formal customs entry or the payment of custom duties or government excise taxes.

Foreign-Trade Zone procedures allow domestic activity involving foreign items to take place as if it were outside U.S. Customs territory. Duty-free treatment is accorded items that are re-exported and duty payment is deferred on items sold in the U.S. market, thus offsetting Customs advantages available to overseas producers who compete with producers located in the United States.

A site that has been granted zone status may not be used for zone activity until the site or a section thereof has been separately approved for FTZ activation by local U.S. Customs officials, and the zone activity remains under the supervision of Customs. A subzone is a special-purpose zone, usually at a manufacturing plant.

FTZ sites and facilities remain within the jurisdiction of local, state or federal governments or agencies.

Maryland has four Foreign-Trade Zones:

  • Baltimore #74
  • BWI Airport #73
  • Prince George's County #63
  • Washington County #255

Baltimore FTZ #74

Baltimore’s Foreign-Trade Zone houses port related activities and include facilities for warehousing, distribution, assembly, packaging and manufacturing.  Companies that deal in auto parts, electronics, electrical components, chemicals, food products, pharmaceuticals, consumer goods and shipbuilding are examples of companies that benefit from FTZ #74.

On April 5, 2001, the U.S. Department of Commerce Foreign-Trade Zones Board approved a major expansion and reorganization of FTZ #74.  Prior to this expansion, FTZ #74 encompassed 286 acres within the City of Baltimore.  The FTZ was expanded again in December 2005 in order to accommodate anticipated growth and demand for space.  New sites included Canton Trade Center in Baltimore City, Marley Neck Industrial Park in Anne Arundel County, and Enterprise Business Park in Harford County.  All sites are zoned industrial and include facilities for warehouse and distribution, as well as assembly, packaging and manufacturing activities.  With this latest expansion, FTZ #74 now totals 1,727 acres.

During Fiscal Year 2005-06 FTZ #74 served 85 businesses.  Of these, 22 used the zone on a continuous basis, employing over 216 persons.  The zone handled 25 different items from 16 countries of origin.  The growth of the Foreign-Trade Zone has created additional cargo tonnage, increased Baltimore City’s tax base and allowed operators to import and export their products with significant savings that boost their competitive edge in global markets.

36 South Charles Street, Suite 1600
Baltimore, MD 21201
(410) 837-9305

BWI Airport FTZ #73

The Baltimore/Washington International Thurgood Marshall Airport (BWI) Foreign-Trade Zone specializes in airfreight and other high value goods. It permits multiple operators and consists of six sites that include both developed and undeveloped parcels.

  • Site 1 – 15.8 acres located at BWI Airport consisting of three air cargo buildings (A,B,C) with 101,565 square-feet of FTZ designated floor space.  Not currently activated.
  • Site 2 – 13 acre parcel of undeveloped land at BWI Airport located on Maryland Route 176 near Taxiway “T.”  Not currently activated.
  • Site 3 – Hoogerwerff (USA – General Purpose Operator). 3.94 acre parcel which includes 73,025 square-feet of warehouse space in the Route 100 Industrial Park at 6905 San Tomas Road, Elkridge.  Not currently activated.
  • Site 4 – 28.854 acre parcel within the Carroll Industrial Park, 2000 Washington Boulevard, Baltimore.  Not currently activated.
  • Site 5 – The Belt’s Corporation (General Purpose Operator). Five-acre parcel which includes 205,000 square-feet of warehouse space (of which approximately 96,000 square-feet is presently activated) at 6925 San Tomas Road, Elkridge
  • Subzone 73A – Rotorex Company, Inc. Special-purpose subzone rotary compressor manufacturing plant in Walkersville.  Not currently activated.
  • Subzone 73B – Northrop Grumman Corporation. Special-purpose subzone of up to eleven sites in Maryland.  Site 2 is activated and operating.

 

P.O. Box 8766
BWI Airport, MD 21240-0766
(410) 859-7036

Prince George's County FTZ #63

The Prince George’s County Foreign-Trade Zone consists of 77 acres on two sites. One site, Steeplechase, is comprised of 60 contiguous acres located at the interchange of I-495 and Ritchie Marlboro Road in the County's Enterprise Zone. Steeplechase 95 International Business Park is a comprehensive 95-acre complex encompassing warehousing, office space, light manufacturing activities and is rimmed by 16 acres of retail.

Sixteen acres adjacent to U.S. 301 in Collington Business Center also serve as part of the Prince George's County's Foreign-Trade Zone. Both sites are near three major ports of entry: Baltimore/Washington International Thurgood Marshall Airport, the Port of Baltimore and Washington Dulles International Airport. The zone's central location in the Northeast Corridor plus its highly developed transportation network and close proximity to Washington, D.C. provide efficient overnight access to markets in the eastern United States.

Although presently inactive, new energy and marketing activity should provide impetus to businesses ready to locate in the zone. The County envisions additional sites and subzones in the future.

1100 Mercantile Lane, Suite 115A
Largo, MD 20774
(301) 583-4650

Washington County FTZ #255

The U.S. Department of Commerce approved a Foreign-Trade Zone in Washington County was on July 3, 2002, representing the fourth such zone in Maryland.  The zone is associated with the Baltimore Customs port of entry at the Port of Baltimore.  It consists of seven individual sites totaling 1,866 acres.

  • Site 1 – Fort Ritchie at Cascade.  276 acres being developed as a mixed-use business park at the former Fort Ritchie military base.
  • Site 2 – Airport.  387 acres at the Hagerstown Regional Airport coupled with 56 acres owned by the Bowman Group adjacent to the airfield.
  • Site 3 – Maugansville.  81 acres at the Hub Industrial Park off of Interstate 81.
  • Site 4 – Hopewell Valley.  722 acres comprised of Tiger Development properties and a portion of properties owned by the Bowman Group, near the intersection of interstates 81 and 70.
  • Site 5 – Hagerstown.  43 acres at the City of Hagerstown Industrial Park.
  • Site 6 – Williamsport.  172 acres located at the Interstate Industrial Park.
  • Site 7 – Hancock.  129 acres located in the Hancock Enterprise Zone adjacent to the intersection of interstates 68 and 70.

 

100 West Washington Street, Room 103
Hagerstown, MD 21740
(240) 313-2280