Port of Port Angeles gains foreign trade zone designation

PORT ANGELES — The Port of Port Angeles has gained foreign trade zone designation from the U.S. Department of Commerce’s International Trade Administration.

Its application under the alternative site framework was approved Jan. 10.

The next step will be a meeting early next month with the local and Seattle branches of U.S. Customs and Border Protection, which must approve activation of the zone before the port can start operations, said Caleb McMahon, the port’s director of economic development.

“The big thing about FTZs is the CBP is looking over them for the security requirement,” he said. “They want to know what our plans are, what kind of processes we’re looking to do, and then they’re going to give us some guidance on what they would like to see for security.

“As long as we meet their specs — and we’ll find out what they are — they should be happy.”

The port has not yet decided where the foreign trade zone will be located, or whether it will use an existing facility or build a new one.

“We could really choose any of our properties,” McMahon said.

The port has been readying itself for foreign trade zone designation since at least 2023.

“We’ve kind of known this was coming for a while, so we’ve been beefing up security around the port for the last two years,” McMahon said. “This year we already have quite a bit of money in the budget for security and a lot of that was looking forward to this.”

Port Angeles’ will be the 13th foreign trade zone in the state. The zones allow businesses to import and export goods without paying U.S. duty or excise taxes.

“We’re really looking at it for some of our existing clientele who are already here and could use it,” McMahon said. “In addition, with the potential for tariffs coming into play, this could be pretty apropos timing for us to have one. I think one of the big things that we’re going to see here is wood coming from Canada using this FTZ.”

For example, he said, a company that imports wood from Canada to fabricate chairs in the foreign trade zone and then sends the finished product back would not have to pay export duties.

The alternative site framework designation streamlines the process for companies that want to take advantage of the benefits a foreign trade zone offers by saving them time and eliminating much of the paperwork.

The port has a five-year window to make its foreign-trade zone operational, but it doesn’t plan to wait that long.

“We’re going to move much faster than that because we already have people who want to use it and potential clients who would move here if we could get them certain types of facilities like bonded warehouses,” McMahon said.

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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.

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