THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' (Board) Value of "[E]nsuring economic opportunities for Broward's diverse population and businesses" and Goal to "[I]ncrease the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Foreign-Trade Zone (FTZ) No. 25, Tariff No. 4 provides the rules, regulations, and fees that govern the use of the facilities and services at Port Everglades and the various other sites of FTZ No. 25 as required by the Foreign-Trade Zones Board pursuant to the Foreign-Trade Zones Act of 1934. The FTZ No. 25, Tariff No. 4 was last amended by the Board on September 23, 2014 (Item No. 18-PH), and effective on October 1, 2014.
The proposed tariff revisions would be effective on November 1, 2018, and would increase the FTZ Transaction Fee, grid space rates, and the minimum grid space invoice charge.
An FTZ Transaction Fee is charged each time the FTZ Operator (Port Everglades) processes a permit required by U.S. Customs and Border Protection (CBP) authorizing the movement of a zone user’s merchandise in to or out of FTZ No. 25, or authorizing any CBP-controlled activity involving a zone user’s merchandise within FTZ No. 25. The last increase in the FTZ Transaction Fee was effective on October 1, 2014. While the increase of the Transaction Fee is directly related to recovering the cost of new FTZ software being implemented by the County using Integration Point, Inc., approved by the Board on June 5, 2018 (Item No. 35), the fee itself continues covering the Port’s FTZ staffing, facilities, and operating expenses. The proposed Tariff amendment provides for a phased increase of the FTZ Transaction Fee in $5 increments beginning in Fiscal Year 2019 on November 1, 2018, and continuing through Fiscal Year 2021. As a result, the FTZ Transaction Fee would increase from the current $21 to $26, $31, and $36 for Fiscal Years 2019, 2020, and 2021, respectively.
Grid space is made available to FTZ users for the short-term use of vacant warehouse, office, or land space within the on-port FTZ. The last increase in grid space rental rates was effective in October 1, 2014. Grid space rental rates would increase by approximately 2.0% to maintain a 10% differential above warehouse lease rates at the on-port FTZ. Additionally, the minimum grid space invoice charge would be increased from $15 to $80. The proposed new minimum grid space invoice charge equates to a grid space of 100 square feet. |