Foreign Trade Zones
GUESTS
We welcomed Doug Couse of Bank of Choice as a guest.
ANNOUNCEMENTS
We inducted Shannon Spangler as our newest member.
PROGRAM
The program for the day was brought to us by Eric Swanson who introduced Tim Kent of Great Western Development Co. who talked to us about the proposed Foreign Trade Zone for the Windsor area. Tim said that this zone would provide for tax free and duty free treatment for production facilities whose output is destined for abroad. It allows companies to defer taxes and duties to match revenues also. Such zones are used by virtually every country in the world.
For the last 30 years, the US has imported more products that we have exported. In 2002, we ran a $485 billion deficit with other countries and in 2005 that number was up to $726 billion. This creates a condition where we have to borrow from foreign countries and banks. Tim pointed out that China has used the Foreign Trade Zones better than anyone else in the world and their economy has benefited accordingly.
The advantages for businesses are many; it allows business to manage their inventory flow better. There is no tax impact on state or local government with these zones. Kodak is setting up a special zone for their business.
QUIZ ANSWER
No one owns Antarctica. By international agreement it is reserved for research and other non-military functions. With global warming, there may be an opportunity for some beachfront homes in the future.
NEXT QUESTION
For years, Disneyland has been the top tourist attraction in California. This last year, it fell to second place. What unseated it?
We welcomed Doug Couse of Bank of Choice as a guest.
ANNOUNCEMENTS
We inducted Shannon Spangler as our newest member.
PROGRAM
The program for the day was brought to us by Eric Swanson who introduced Tim Kent of Great Western Development Co. who talked to us about the proposed Foreign Trade Zone for the Windsor area. Tim said that this zone would provide for tax free and duty free treatment for production facilities whose output is destined for abroad. It allows companies to defer taxes and duties to match revenues also. Such zones are used by virtually every country in the world.
For the last 30 years, the US has imported more products that we have exported. In 2002, we ran a $485 billion deficit with other countries and in 2005 that number was up to $726 billion. This creates a condition where we have to borrow from foreign countries and banks. Tim pointed out that China has used the Foreign Trade Zones better than anyone else in the world and their economy has benefited accordingly.
The advantages for businesses are many; it allows business to manage their inventory flow better. There is no tax impact on state or local government with these zones. Kodak is setting up a special zone for their business.
QUIZ ANSWER
No one owns Antarctica. By international agreement it is reserved for research and other non-military functions. With global warming, there may be an opportunity for some beachfront homes in the future.
NEXT QUESTION
For years, Disneyland has been the top tourist attraction in California. This last year, it fell to second place. What unseated it?
posted by Windsor Rotary Club (link to this post)
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