THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' (Board) Value of "[E]nsuring economic opportunities for all people and businesses in Broward" and the Goal to "[I]ncrease the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
The Board is the Grantee of Foreign-Trade Zone (FTZ) No. 25 (Grantee) as authorized by the Foreign-Trade Zones Board (FTZB). The FTZB designates the boundaries where FTZ activity may take place under Broward County’s FTZ Grant of Authority. The current general-purpose boundaries of FTZ No. 25 encompass approximately 388 acres, of which 169 acres are in active FTZ use.
Broward County, as Grantee of FTZ No. 25, is seeking a Minor Boundary Modification to designate a new non-contiguous zone site (0.31 acres) consisting of one building located at 1840 N. Commerce Parkway, Weston, Florida, for use by Masters Medical, Inc., and other potential users, to receive FTZ benefits (see Exhibit 1).
Masters Medical, Inc., d/b/a as Masters Speciality Pharma, is a duly licensed State of Florida Prescription Drug Wholesale Distributor, a global pharmaceutical company that specializes in providing access to high-quality medicines from outside of the U.S. to emerging markets, largely in Latin America. Masters Medical, Inc., has been in business in Florida for 28 years and leases a 5,060 square feet portion of the 13,341-square foot secured office/warehouse storage area located at 1840 N. Commerce Parkway, Weston, Florida. FTZ designation for the property must first be obtained from the FTZB for their plans to move forward. The proposed area would not only accommodate the immediate needs of Masters Medical, Inc., but would make additional space available for other potential FTZ users in the future.
Whenever a need for FTZ benefits requires a change to the current boundaries, the Grantee may request that the FTZB modify the designated boundaries of the FTZ to accommodate the need for the property. When the need is immediate, a Minor Boundary Modification can be quickly approved by the FTZB. Since there is an immediate need for FTZ benefits by Masters Medical, Inc., the Grantee is seeking FTZ designation for the site through an Application for Minor Boundary Modification (see Exhibit 2). U. S. Customs and Border Protection (CBP) will provide a signed concurrence letter after the Board approves the County's letter to the FTZB; a draft of that letter is attached (see Exhibit 3).
The FTZB’s approval will make it possible for Masters Medical, Inc., and other potential FTZ Users to receive and ship more cargo through the Port’s facilities while creating jobs and investments in local buildings and equipment. Since this expanded FTZ activity will take place outside of the on-port FTZ in Port Everglades, the non-contiguous FTZ use will be authorized under an FTZ User Agreement that will generate revenue in the form of FTZ User Fees as provided for in the current FTZ Tariff.
On June 13, 2017 (Item No. 23), the Board authorized the Port Everglades Department Chief Executive/Port Director to execute and submit to the FTZB an Application for Reorganization of FTZ No. 25 under the Alternative Site Framework (ASF). The ASF allows for the most efficient designation of desirable Broward County sites for FTZ use by businesses seeking FTZ No. 25 benefits. On October 25, 2018, the ASF application was approved by the FTZB. This streamlined Application for Minor Boundary Modification is the first being submitted under the new, more expeditious process allowed by the ASF.
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