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Mohave County outlines Foreign Trade Zone plan with Kingman Industrial Park as magnet site
Summary
Mohave County economic development director Tammy Ersenbach briefed the commission on a countywide Foreign Trade Zone (FTZ) application that would designate four magnet sites, with Kingman Industrial Park the largest; the FTZ would permit certain imported goods to be stored, processed or re-exported with tariff advantages.
Mohave County Economic Development Director Tammy Ersenbach explained the county's work to establish a Foreign Trade Zone (FTZ) covering the county and to designate four magnet sites, including Kingman Industrial Park as the largest location.
Ersenbach explained that FTZs (also called free-trade zones internationally) are secure areas under U.S. Customs and Border Protection supervision where imported goods can be held, assembled, processed or re-exported without immediate entry into U.S. customs territory. She said this permits tariff deferral or elimination for goods re-exported or incorporated into exported products and can reduce tariff costs on waste material from manufacturing processes.
Why it matters: an FTZ can materially lower import/export costs for manufacturers and international traders and can influence site selection. Ersenbach said the county's plan would create four magnet sites (Kingman Industrial Park, Griffith, White Hills and Colorado City) and that the application process includes fees ($8,000 per new magnet-site application; annual fees thereafter cited). She said the program can attract employers that create high-wage jobs and cited an example prospect proposing a 1,000,000-square-foot facility with initial 300 employees and average wages starting at $80,000.
The presentation covered operational constraints (FTZ activity remains subject to public-interest review, applicable state and federal law and Customs supervision) and Arizona-specific limitations (state rules restrict use by businesses located outside Arizona). Ersenbach said the county coordinated taxing entities and is working with CBP in Long Beach as the supervising port. She described next steps as submitting the formal application, confirming CBP support and continuing business outreach to confirm users for the magnet sites.
Commissioners asked about rail, I-40 corridor logistics and transloading assets; Ersenbach said the existing rail, airport and planned inland-port activity would complement FTZ operations and that staff would continue interagency planning.
