Border Tax Implications. Are Foreign Trade Zones the Solution

In an interview of Gary Goldfarb, our Chief Strategy Officer at Interport Group of Companies and the leading Foreign Trade Zone consultant for the region, we asked him to look at the new sanctions being imposed on Canada as an indication to what might come in the future.

Andres Diaz: Mr. Goldfarb, what do you think of the new administration’s Border Tax on Canadian Softwood Lumber and the potential for additional Anti-Dumping duties on the Canadian Dairy Industry?

Gary Goldfarb: Andres, we have been hearing rumblings about Border Taxes, Anti-Dumping and Countervailing Duties and other Trade measures to be imposed by the new administration, and have been advising our Foreign Trade Zone clients, and those who would hire us to help them become FTZ Operations, to hurry up and get the ball rolling. Once the measures are up, then it becomes very difficult to set up.

Andres Diaz: Mr. Goldfarb, did you expect Canada to be the first country the administration would go after?

Gary Goldfarb: No, actually we thought China or Mexico. But that is a clear indication that these types of actions can come quickly and unpredictably to different countries.

Andres Diaz: How long does it take to establish a Foreign Trade Zone operation?

Gary Goldfarb: In areas where the Foreign Trade Zone is under ASF (Alternate Site Framework) between 120 and 150 days from the moment they hire us. In Traditional FTZ environments a little longer. But by the time we are done with the consulting work, the company is fully trained on FTZ matters and ends with substantial savings from FTZ operations and cash flow growth.

Interport is one of the leading 3PLs (Third Party Logistics Providers) in the Americas, providing Freight Forwarding, Customs Brokerage, Foreign Trade Zone and General Warehousing, Consulting and Supply Chain Management. Our leadership in Supply Chain Technology differentiates us from the rest.