The Government of Canada
has granted Foreign Trade
Zone Point designation (FTZVI)
to the Vancouver Island
Economic Alliance (VIEA).
An FTZ Point is one of Canada’s strategic locations for international trade where an organization with a mandate to promote local trade and foreign direct investment is uniquely supported by a single-point of access to information on relevant government policies and programs.
CollinsWorks Ventures of North Saanich was contracted to conduct research and develop this portfolio of business cases. VIEA hosted stakeholder meetings in communities across the Island. This project started in April 2018 and concluded in December 2018.
Foreign Direct Investment Report
What is a Foreign
FTZVI is unique amongst the eleven FTZ Points across Canada. It is the only broad regional designation and the only designation awarded to a non-government organization. FTZVI is also the only FTZ Point west of Quebec with direct access to ocean transport.
FTZVI is the result of several years of work by the Economic Alliance to help raise the profile of Vancouver Island as a preferred location for producing goods for export and as a recognized destination for Foreign Direct Investment.
FTZ Point designation is just the beginning of a pivotal time during which Vancouver Island will assume its role as a prominent component in Canada’s Asia Pacific Gateway.
Foreign Trade Zone – Vancouver Island
Anyone actively exporting products from Vancouver Island, and especially anyone importing materials or components for production, manufacturing, assembly, or even storage of products for export will find significant cash flow advantages through FTZVI.
Who Are We?
FTZVI will serve import/export interests of Island businesses and transportation providers with all the advantages afforded FTZ Points by the Government of Canada.
What Do We Do?
FTZ Point designation enables aggressive marketing of the Island region to attract international trade activity and expansion of Vancouver Island production of goods for export. FTZVI will also be able to provide streamlined access to government programs to improve trade.
How Do We Work?
With startup funding from the Government of Canada along with substantial stakeholder partnerships with industry and transportation, a VIEA appointed Board of Advisors will lead FTZVI to function as the ‘go to’ resource to promote and facilitate international trade on Vancouver Island.
Industries & The Benefits
An FTZ Task Force with representatives from Western Economic Diversification, Global Affairs Canada, Canadian Border Services Agency, Canada Revenue Agency, Transport Canada, BC Ministries of Transportation and Infrastructure, and Jobs, Trades and Technology will be coordinated by FTZVI to problem solve and to facilitate easy access to a suite of programs that make up the FTZ advantage:
Duty Relief Program
Relieves the payment of duties on imported goods that will eventually be exported either in the same condition or after being consumed, expended or used in processing other goods. This can have significant cash flow benefits for Island manufacturers.
Exporter of Processing Services Program
Qualifies companies to import goods belonging to non-residents without paying GST/HST as long as these goods are imported for processing, distribution or storage and are subsequently exported.
Customs Bonded Warehouses
Companies participating in the Customs Bonded Warehouse Program qualify for complete deferral of duty and taxes. When goods exit the warehouse, taxes are applicable. If goods are re-exported, there are no duties or taxes. The definition of a ‘warehouse’ is quite broad. It can be part of your office building, a stand-alone facility, or even a hotel conference room, and can be located anywhere within the FTZ Point – e.g. anywhere on Vancouver Island!
Export Distribution Centre Program
Provides relief of cash flow cost incurred by export businesses that add limited value when processing or distributing goods such as relabeling, repackaging, assembling or disassembling, inspecting, cleaning, etc. This especially benefits companies, for instance, that are importing goods and/or acquiring goods in Canada without paying GST/HST as long as the goods are later exported.
Vancouver Island, with excellent transportation infrastructure to reach international markets and a vast inventory of under-utilized industrial land, is positioned for a substantial role in Canada’s evolving export economy. For even more information, please fill out our contact form and we will get right back to you!