Cullum Interests sponsored and requested the expansion of Foreign Trade Zone #38 to encompass all of Velocity Park.  The application was approved by the South Carolina State Ports Authority in May, 2010, and by the U. S. Department of Commerce in October, 2010.

The main benefits of being in a Foreign Trade Zone accrue to the users and tenants.  In summary, these include:

• FTZs are not in U.S. Customs territory; therefore, duty is paid only when imports are shipped into Customs territory.
• Customs duties are not paid on merchandise exported out of the U.S. from a FTZ.
• Duties are reduced or eliminated on materials subject to defect, damage, obsolescence, waste, and scrap.
• Duties are not owed on labor, overhead, or profit attributed to FTZ production operations.
• FTZ users can pay the duty rate on component material or merchandise produced, whichever is lower.
• Spare parts may be stored, returned, or destroyed without paying duty.
• Most merchandise subject to U.S. quotas may be held in an FTZ until quota windows open.
• Delays in Customs clearances and duty drawback procedures may be eliminated.
• Quality control inspections can identify substandard goods to be destroyed without duty payment.
• No country of origin labels are required on merchandise admitted to an FTZ.
• Customs supervision of procedures saves on individual security expenses and insurance.
• Increased accountability can reduce problems within inaccurate inventory, receiving and shipment.
• Materials consumed in FTZ processing are generally not subject to duties.
• Merchandise may be held for exhibition without duty.
• Duty payable on FTZ merchandise need not be included on insurable value.
• Due to security, insurance rates may be lower.
• No duty is owed on in-bond, zone-to-zone transfers of FTZ merchandise.
• Specific merchandise ID is unnecessary.
• First-in-first-out and foreign first methods are acceptable.
• Customer may be able to reduce merchandise processing fees.
• Users may be able to reduce Customs brokerage fees.

Copies of all approvals by the South Carolina State Ports Authority and the U. S. Department of Commerce may be viewed.