Bangor Foreign Trade Zone #58

Bangor Foreign Trade Zone #58

A foreign trade zone is an authorized area, considered outside of U.S. Customs territory, but under Customs supervision. Foreign merchandise transported into a zone is considered in international commerce which delays formal Customs entry procedures and payment of duties until the merchandise enters a U.S. Customs territory for domestic consumption.

Therefore, distribution and processing can be conducted within the protective environment of a U. S. foreign trade zone with resulting savings in duty costs, cash-flow schedules, and import/export paper work. The BanAir Corporation, operator of Bangor Foreign Trade Zone #58 offers a full range of services for zone users from loading/unloading manpower and equipment to clerical services.

Advantages of Foreign Trade Zones

  • Land and store imports without Customs duties or bonds.
  • Round-the-clock security for your goods.
  • Process your goods to obtain lower duties or freight charges.
  • Duty due on imported product or the imported components, whichever is lower.
  • Manufacture your goods using foreign and domestic components.
  • Customs savings. Re-label or remark merchandise in the Zone, avoiding fines on improperly marked goods. Withdraw a sample to learn how Customs rates your product.
  • Duty savings earned by: discarding substandard goods, impurities, waste; not paying for shrinkage, evaporation, seepage, etc.; manipulating your products - duty may be lower if your merchandise is disassembled or changed before entry.
  • Capital savings - Duties not paid until your goods are sold. If you re-export, your money is not ties up with drawbacks.
  • Overhead savings - BanAir will receive and store your merchandise, shipping it according to your instructions.
  • Import quotas do not apply in the Zone. You may import and hold goods in the Zone until the next quota period.
  • Sampling is possible before paying duty. Buyers can inspect your goods stored in the Zone.
  • Warehouse receipts are issued on requests so you can borrow on your goods in the Zone.
  • You may sell your goods in the Zone before paying duty or excise tax.
  • You can change your mind. If the U.S. market is not receptive, ship your goods elsewhere.
  • Stockpile ships stores, aircraft supplies, etc. at the Zone for use aboard ships or aircraft engaged in foreign service.
  • No time limit. Storage may await best market conditions.
  • Immediate recovery of drawbacks on goods entered in the Zone for subsequent export.

Tax Incentives for Leasing Our Manufactured Spaces

Pine Tree Development Zones

Tax incentives to spur economic development in targeted areas of the state where unemployment is relatively high, and wages are relatively low.

Benefits Highlighted

In addition to existing incentive programs, such as business equipment tax reimbursement, job training, and financing programs, effective January 1, 2004, qualified new and expanding businesses have access to:

  • An enhanced ETIF (Employment Tax Increment Financing) program that returns a company 80% of the state income tax withholdings of 5 or more net new qualified employees for up to ten years;
  • A 100% refund of corporate income tax and insurance premium tax for years one through five, and 50% for years six through ten;
  • A local option TIF (Tax Increment Financing) that may return some or all of the new property taxes to a company and will not be counted against a municipality's existing TIF area and value caps;
  • (Effective Fall 2004) Reduced electricity rates, as requested by Central Maine Power Company, Bangor Hydro Company and Maine Public Service Company, and approved by the Public Utilities Commission; and
  • (Effective July 1, 2005) A 100% sales and use tax exemption for zone-related construction materials and equipment purchases.

All Pine Tree Development Zone benefits can be "layered" over other available benefits. For example, Aroostook County is home to a federally-designated, Rural Empowerment Zone, entitling companies to federal tax credits up to $3,000 per employee. The federal tax credits can be taken in addition to the State tax credits for businesses located both in the Empowerment Zone and the Pine Tree Zone. And Lewiston has several inner-city parcels federally-designated as an Enterprise Community with associated benefits.

Eligible Businesses. Eligible businesses include firms engaged in manufacturing, financial services, and Maine's seven targeted technology sectors: biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, information technology and precision manufacturing technology.