Lauderdale Marine Center (LMC) has received Production Authority under its existing Foreign Trade Zone (FTZ) designation. The 65-acre facility in Ft Lauderdale said that this is the first of its kind for the recreational marine industry in the United States.
The designation, provided by US Customs & Border Protection, allows work to be performed on foreign-flagged vessels while they are in the FTZ without having to clear US customs. The zones are considered territories that are not in the commerce zones of the US, and work and products done on the boats are considered an export for the purpose of commerce.
"A foreign-flagged vessel could arrive to the FTZ and replace anything from seals to entire engines, saving up to 8.8% duty on these parts,” said Doug West, LMC president, in a statement. “Large refit projects will certainly see immense savings, but smaller projects will see cost savings as well when conducting work within the FTZ.”
The FTZ benefits also include showing a boat for sale to US citizens and traveling for exhibitions or sea trials within US waters for up to 120 days. “This means once a vessel completes repairs it could remain in the FTZ for sale, eliminating the need for boat show bonds,” said West.
Vessels that have used the FTZ since it was introduced in August 2017 include M/Y Cheers 46, M/Y Ninkasi, and M/Y Clorinda, among others, which have exhibited to American citizens both in and out of boat shows.