City of Socorro becomes third in El Paso County to establish Foreign Trade Zone

SOCORRO, Texas (KVIA) -- The City of Socorro has established a new Foreign Trade Zone (FTZ), becoming the 35th FTZ in Texas and the 3rd in El Paso County.

The approval of Socorro's FTZ application on Nov. 13, provides Socorro with its grant of authority, allowing it to permit businesses to set up foreign trade sites within city limits.

FTZs are special areas in the United States that benefit companies by reducing import duties and other costs. The City of Socorro said it will encourage domestic manufacturing, help to create and maintain local employment, and promote U.S. economic growth.

The establishment of these FTZs are often the first step to establishing a new port of entry.

The zones are secured areas under U.S. Customs and Border Protection (CBP) supervision.

The benefits of Foreign Trade Zones

• Duty-free and excise tax-free exporting of goods from an FTZ
• Merchandise may remain in a zone indefinitely
• CBP duty and federal excise tax, if applicable, are paid only when the merchandise is transferred from a zone
• Lower logistics costs for high-volume operators