No business

or industry in Peachtree City has taken advantage of federal tax breaks

relating to the city's Foreign Trade Zone designation.

But the Development

Authority of Peachtree City wants to see that change and plans to work

with its counterparts in Fayette County to make sure local leaders are

aware of the advantages of using the special designation.

The FTZ allows

businesses to import goods from overseas and delay payment of federal

tariffs, authority chairman Tate Godfrey explained at Saturday morning's

economic development workshop. The tariffs are paid after the item is

manufactured unless that item is sent to another FTZ in the country; in

such a case the tariff would be due when the larger item is sold, Godfrey

noted.

The savings

on the tariffs allow companies to increase their cash flow, Godfrey said.

The catch is

that those goods must be kept separate from the company's normal inventory,

and that has kept local businesses skittish from implementing the system

to save on the tariffs.

The authority

sought the foreign trade zone status for the industrial park and some

office areas in town several years ago at the request of two companies

who wanted to use the program to save money, Godfrey said. But neither

company was able to implement the program, he added.

Authority member

Doug Warner said it was disappointing that neither company has been able

to implement a program to take advantage of the FTZ designation.

Still, just

having the FTZ status helps recruit other businesses and industries, said

authority member Scott Bradshaw. He suggested erecting a special sign

touting the FTZ designation to improve the city's business image and let

the public become aware of it.

Chris Clark

of the Fayette County Development Authority said recent changes in the

law allow distribution facilities to take advantage of FTZ tariff delays

also.

Godfrey suggested

the authority consider funding a membership in a trade organization that

supports FTZ efforts.

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