Lauderdale Marine Center has received Production Authority under its existing Foreign Trade Zone. Provided by the U.S. Customs & Border Protection, the designation is the first of its kind in the recreational marine industry and it allows work to be performed on international vessels while they are in the FTZ.
Owners and contractors for foreign-flagged vessels entered into the FTZ can ship parts into the zone without paying duties and the parts will not have to clear U.S. customs before arriving because the FTZ is considered “territory not in the commerce of the U.S. and these articles are considered an export for the purpose of commerce,” according to a statement from Lauderdale Marine Center.
“A foreign-flagged vessel could arrive to the FTZ and replace anything from seals to entire engines, saving up to 8.8 percent duty on these parts,” said LMC president Doug West in a statement. “Large refit projects will certainly see immense savings, but smaller projects will see cost savings as well when conducting work within the FTZ.”
Vessels that wish to use the benefits of the FTZ with Production Authority retain the benefits of the standard FTZ entry, which include being able to show the boat for sale to U.S. citizens and travel for exhibitions or sea trials within U.S. waters for up to 120 days. Once a vessel completes repairs it could remain in the FTZ for sale without the need for a boat show bond.