Pilot El Paso is now operating as a
Foreign Trade Zone, a factor that will appeal to many Pilot clients in the
automotive, healthcare, electronics and aerospace industries. An FTZ is an area
authorized by the U.S. Customs and Border Protection that allows U.S.-based
companies to defer, reduce or even eliminate customs duties on its products
admitted to the zone. “We envision customers that import raw materials from the
Far East and Europe to their manufacturing plants in Mexico, will use the
station’s FTZ capabilities to hold product here until they are ready to send it
south,” says Hector Martinez, Pilot El Paso’s in-house customs broker. “That
way they have their inventory nearby as opposed to overseas, and thus avoid
paying U.S. duties.” When ready, the ELP team will prepare the goods for export
and the team will assist with the necessary document preparation.
Last summer, ELP doubled its warehouse space to 40,000
square feet in preparation for the FTZ activation. In order to do so, the
facility has established a new inventory and security system. “Since the
merchandise is considered an in-bond shipment and not technically entered into
the U.S., there are several special accommodations we’ve established at the
station in order to meet FTZ requirements,” says Hector. “This value-added
service will also allow Pilot to remain competitive as there are a dozen or
more FTZs in the city currently.” In addition, the station is situated close to
the Zaragoza Bridge, which allows for shorter transit times to the Mexican
border, a factor that is appealing to many customers.
