Port approves Foreign Trade Zone No. 3 schedule revision, adopts tiered annual fees

Jim Maloney of the port’s Maritime Division asked the commission to approve an updated zone schedule for Foreign Trade Zone No. 3 to conform to the Foreign Trade Zones Board’s 2012 regulations. Maloney said the revision reduces the port’s schedule from 31 to 17 pages and introduces a tiered fee schedule to make FTZ benefits more accessible to smaller and medium-sized firms.

Maloney outlined cost and revenue assumptions, reporting an estimated $95,000 in FTZ administrative costs for 2013 (about $55,000 in fixed staff time) against $50,000 in fees collected that year. He told the commission that with the addition of new sites — Expeditors International and Phillips 66 — the port expects FTZ fees of at least $96,500 in 2014 and argued the program should be self‑sustaining. "We reduced our schedule from 31 to 17 pages," Maloney said, describing efforts to streamline operations and justify fees.

The proposed fee approach establishes four tiers with annual fees ranging roughly from $10,000 to $20,000 depending on site size; existing site annual fees will remain unchanged for now. Commissioners asked whether projected fee increases reflected new users or a rate change; Maloney said the projected increase was principally driven by adding additional site users. Commissioners also asked staff to clarify how frequently the schedule will be reviewed; Maloney proposed an annual review as a practical approach although the regulations do not prescribe a specific interval.

Commissioners approved the zone schedule revision by motion and vote. Staff said it will issue press releases when the new sites go active and proceed with outreach to chambers, economic-development partners and regional FTZ counterparts to recruit prospective users.