Saint John Is Now A Foreign Trade Zone Point
SAINT JOHN– New Brunswick businesses now have the opportunity to take advantage of Canada’s foreign trade programs and opportunities in Saint John.
It was announced Friday that the city has received a Foreign Trade Zone (FTZ) Point designation, which allows companies to import goods, assemble and store them, and re-export them with tax and duty deferrals and/or exemptions. The city is the 10th FTZ Point in Canada.
The Saint John region’s economic development agency, Enterprise Saint John, has been working with partners such as Port Saint John and all three levels of government, to secure the designation over the last two years. Port Saint John CEO Jim Quinn says its another incentive to do business in the city and the province.
“The real potential is it’s a tool in the toolbox that allows people to look at ways to increase their business opportunities through tax deferral, duty deferral, tariff deferral, things of that nature. It gives the opportunity for people to bring a product, adjust that product and export it back out,” says Quinn. “It’s really a question of how companies can take advantage of this and improve the usage of their own cash flows to grow their own businesses while taking advantage of deferral regimes.”
To help companies take advantage of the benefits of an FTZ Point, Enterprise Saint John will act as the access point for information on its policies and programs. Businesses can access training and regulatory information from the Canada Revenue Agency, Canada Border Services Agency, Transport Canada, Export Development Canada, Global Affairs Canada, and Innovation, Science and Economic Development Canada.
Quinn says the designation will not only help business in New Brunswick grow but also help attract new business to the region as well.
“I think the real trick is that in marketing this, we have to do it in a way that’s easily understandable, but I’m excited about it because some of the companies who are currently here may be able to take advantage of the programs that are being offered by the federal government through the various deferrals,” says Quinn. “But also the entrepreneurs who we try to attract to our region, it gives them something more to hold on to in terms of considering this region to set up businesses and grow jobs and our economy.”
The federal government is giving of $75,000, through ACOA’s Business Development Program, to support Enterprise Saint John’s marketing activities and promotion of the FTZ Point.
The provincial government, through Opportunities NB, the Port of Saint John and Develop Saint John, are each contributing $5,000 towards marketing.
Though this designation has been in the works for several years, Quinn says in today’s climate around international trade, news like this is welcome.
“Certainly in today’s world and today’s climate, anything that can be done to attract companies and give advantages to companies for them to diversify their businesses on the broader global stage is certainly a good thing,” he says.