News Article | 2/28/2012

Alliance Ranks as Country’s Top Foreign-Trade Zone

When it comes to the value of foreign goods admitted, the Alliance Foreign-Trade Zone (No. 196) in North Fort Worth sees more action than any other general purpose FTZ in the United States. In an annual report to Congress, the country’s Foreign-Trade Zone board found that Alliance admitted more than $4 billion in foreign products in 2010—a 36 percent increase when compared to 2009. (2011 numbers will be released next year.)

This is the fourth time in five years that the Alliance FTZ has ranked No. 1.

About 80 percent of the product that flows into Alliance comes from China; another 12 percent comes from South Korea, and 8 percent from Denmark. Other countries of origin include Mexico, Taiwan, the Philippines, and Thailand.

Much product enters the country through ports in Los Angeles/Long Beach, and holds U.S. Customs bonded status as it travels to BNSF Railway’s Alliance intermodal facility at the Alliance Global Logistics Hub. They’re then transported to a FTZ-designated facility, and inventoried, assembled, labeled, kitted, exported, or destroyed, according to Hillwood, the developer behind Alliance.

Alliance tenants that use the FTZ include Cinram, Hyundai, LEGO, Motorola, GENCO ATC, Callaway Golf, and Alliance Operating Services. The foreign trade zone is experiencing strong growth due to the substantial, and increasing, presence of global companies in the region, said Steve Boecking, vice president of Hillwood Properties. “Regional efforts to strengthen international relationships and to build new global trade partnerships have also resulted in an increased volume of foreign goods being shipped through North Texas,” he said in a statement.

Here are the top five U.S. general purpose U.S. Foreign Trade Zones for 2010 (most recent timeframe for which data is available):

Foreign-Trade Zone                       Value of Foreign Goods Admitted
1.  Fort Worth/Alliance (Texas)      $4.056 billion
2.  Chicago (Ill.)                                $4.044 billion
3.  Newark (N.J.)                              $3.285 billion
4.  Houston (Texas)                          $2.971 billion
5.  Charleston (S.C.)                        $2.055 billion

Here is additional information from a Hillwood press release:

About Foreign Trade Zones: FTZs are secure areas under the supervision of U.S. Customs and Border Protection. They are considered outside the customs territory of the United States for the purposes of duty payment. Under zone procedures, the usual formal customs entry procedure and payment of duties are not required on the foreign merchandise unless, and until, it enters customs territory for domestic consumption, in which case the  importer normally has a choice of paying duties on the original foreign materials or the finished product. FTZ sites and activities remain within the jurisdiction of federal, state and local governments and agencies.

About AllianceTexas: AllianceTexas is a 17,000-acre, master-planned community anchored by the world’s first industrial airport. It includes the Alliance Global Logistics Hub, Circle T Ranch, Heritage, Alliance Town Center, Saratoga and Monterra Village projects. AllianceTexas is now home to 265 companies, which have built nearly 32 million square feet and created more than 30,000 jobs. The community also now includes more than 7,600 single-family homes and 288 luxury apartment homes. Since its inception, AllianceTexas has generated a $40.65 billion economic impact for the North Texas region.

About Hillwood: Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and as the top residential developer in Dallas-Fort Worth. The company’s developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes list of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center and 2,000-acre AllianceCalifornia developments.