NORWICH — The U.S. Department of Commerce has granted Chenango County authority to establish a foreign-trade zone (FTZ), becoming the 15th such trade zone in New York.
Development Chenango Corporation (DCC) made the announcement today.
DCC last July applied on behalf of Chenango County for FTZ status to create more opportunities for businesses to compete in the global market.
An FTZ allows companies to produce or store goods in the U.S. as though those goods are outside U.S. commerce, the DCC said in a news release.
Manufacturers often use several materials to create products, and those materials have separate tariff codes and duty fees, Rebecca Sands, the DCC’s economic-development coordinator, said in the release.
The final products also have separate tariff codes and duty fees, which are usually lower than the tariffs on the raw materials.
“Foreign-trade zone businesses that release their products for sale in the U.S. would pay the lowest duty fee, and those who export their items do not pay any duty fees,” said Sands.
DCC included Alvogen/Norwich Pharmaceuticals and CWS, a contract-packaging firm, in the county’s application as usage-driven sites. That means they have the authority to operate in the FTZ upon activation of their sites.
The Norwich location of Pinebrook, N.J.–based Alvogen is the American manufacturing base of the pharmaceutical company, according to the Alvogen website. The CWS website says the company serves the pharmaceutical, medical device, cosmetic, and retail markets.
The firms will have three years to activate their usage-driven sites, DCC said. The companies will work with U.S. Customs & Border Protection in Syracuse to adhere to federal regulations, the agency added.
Contact Reinhardt at ereinhardt@cnybj.com