The

importance of Peachtree City to foreign trade in Georgia

was the focus of discussion at last week's Peachtree City

Rotary Club meeting.

Ron Duffey

of Peachtree National Bank represents the Georgia Chamber

of Commerce on the Georgia Foreign Trade Zone board. He

pointed out to Rotary members that two other Peachtree

City residents also serve on the board: Robin Spradlin of

Georgia Power, representing the Georgia Economic

Developers Association; and Robert Kennedy, manager of

cargo development for Hartsfield International Airport,

representing the airport.

Other

bodies represented on the 14-member board include the

Atlanta Chamber of Commerce, the Atlanta Regional

Commission and the Georgia Ports Authority.

Georgia

exports in 1998 added up to about $15 billion, according

to Carlos Martel, deputy commissioner of trade and GFTZ

chairman.

Foreign

trade zones help other countries compete and reduce

everyone's bottom line, Martel said, adding that Georgia

is competitive worldwide "because we have great

products." He noted that the state is always happy

to show products from Fayette County and Peachtree City

for the same reason.

By

definition, a foreign trade zone is a site within the

United States, in or near a U.S. Customs port of entry,

where foreign and domestic merchandise is considered to

be in international commerce. Such merchandise may thus

enter that area without a formal U.S. Customs entry or

the payment of duties.

This can

add up to serious savings, GFTZ executive director Julie

Brown told Rotary members, as tariffs can be deferred,

reduced or eliminated.

International

ports of entry in Georgia include Atlanta (Hartsfield)

and two coastal cities, Savannah and Brunswick. But

businesses all over the state benefit from these ports,

Brown said.

Peachtree

City now has its own foreign trade zone, in the

industrial park. Officials and business leaders contend

that this will be very attractive to companies doing

business there now or thinking about doing so later.

The top

five industries in the United States utilizing foreign

trade zones are automotive, petroleum,

computers/electronics, pharmaceuticals and machinery.

Companies

in the vicinity of Fayette County that identify the most

with foreign trade zone usage are Ford and General Motors

in Atlanta, Yamaha in Newnan, Pratt & Whitney in

Columbus, and the fueling operations at Hartsfield.

Panasonic

is the first active operator in the Peachtree City zone.

"We're very happy to have Peachtree City," said

Brown, adding that she hopes many more sign on.

To

illustrate the benefits of a foreign trade zone, Brown

displayed a bottle of vodka. The tariff on vodka is 13.9

cents per proof for each quantity under four liters, but

only six cents per proof when over four liters.

it within a foreign trade zone, a company can pay the

lower rate and then distribute it in this country, or

turn around and immediately export it, paying nothing.

While the

vodka example was convenient because she was able to

easily bring the bottle to the meeting, Brown emphasized

that this example could apply to hundreds of goods of all

shapes and sizes.

The GFTZ

helps companies decide if a foreign trade zone is

advantageous for each situation, then helps with the

application process if necessary.

Due to

federal involvement in the application process, there is

the perception of an overly bureaucratic system, Martel

said, but it is not as complicated as it seems.

The foreign

trade zone program has been around for a while, but few

ports actually have the resources to effectively take

advantage of it. Any company can become a subzone by

itself, Brown said, but it is easier to do when already

situated within a zone.