Foreign Trade Zones
The Greater Chattanooga Region is served by three Foreign Trade Zones (FTZs) that allow companies to eliminate, reduce or defer customs duties on imported products used in manufacturing or distribution.
These regions include, FTZ 134 (Tennessee), FTZ 26 (Georgia) and FTZ 83 (Alabama). These specific FTZs allow flexibility in the designation of subzones and usage-driven FTZ sites, instead of zones being defined by geographical boundaries alone.
Komatsu’s Chattanooga, Tennessee manufacturing plant, which produces medium size hydraulic excavators and forestry equipment, began utilizing the Foreign Trade Zone program in 2013.
“FTZ 134 is a definite value-add for our Chattanooga region operations. We have realized efficiencies in our required import product filings and have been able to realize substantial customs duty cost savings on our imported materials.” -Bruce Nelson, General Manager, Komatsu
Other companies in the region utilizing FTZ incentives include Derby (FTZ-134) in Cleveland, Tennessee and Qindao Haier Co., Ltd. (FTZ-26) in Lafayette, Georgia.