The Miami-Dade Aviation Department has obtained final approval from the US Department of Commerce to designate Miami International Airport’s entire 3,230-acre land parcel as a Foreign Trade Zone Magnet Site.

The Magnet Site designation will allow existing or prospective airport tenants to operate manufacturing, warehousing and distribution centres on airport property, and have their federal tariffs deferred, reduced or eliminated. This will result in time and cost savings for approved importers and exporters.

“The MIA FTZ creates a very attractive business opportunity for companies to begin or expand their operations directly on-site at the busiest international airport in Florida,” said Carlos A. Gimenez, mayor of Miami-Dade County. “Congratulations to the MIA team for achieving this significant milestone, which has strong potential for new business revenue and job creation at MIA and PortMiami – our two largest economic engines.”

The new Magnet Site is an expansion of Miami-Dade County’s existing FTZ 281 and will allow companies to receive and process materials and merchandise with reduced or eliminated customs duties upon entry into the country at the airport.

“I commend the Aviation Department and PortMiami, for bringing this important designation to MIA and to Miami-Dade County,” said Rebeca Sosa, commissioner of Miami-Dade County and chairperson of the county’s Economic Development and Tourism Committee. “Because of their efforts with our federal partners, MIA can be an even larger economic engine for our community.”

The airport expects applications to be FTZ operators to be made by companies handling high-traffic commodities such as pharmaceuticals, electronics, textiles, footwear, auto parts, aircraft parts, avionics, machinery equipment, consumer goods and perishables. Companies must first complete an application with PortMiami, which is the grantee of FTZ 281, and then receive approval from US Customs and Border Protection. The expedited application process takes approximately 30 days.

“Our FTZ Magnet Site approval dovetails perfectly with our growth strategy as one of the world’s leading pharma hubs, as well as our efforts to become the e-commerce hub of the Americas,” said Joseph Napoli, chief of staff at the Miami-Dade Aviation Department. “We look forward to opening new doors at MIA within the trade and logistics industries.”

Companies within an FTZ are able to defer paying duties only when product exits the site, reduce duties on combined finished products instead of on each individual product, and eliminate duties on products being imported to the site and then exported.

Air trade at MIA was valued at US$57.3 billion in 2016, accounting for 92% of the value of Florida’s total air trade and 40% of the state’s total air and sea trade with the world.

“Six years after being approved by the US Department of Commerce, FTZ 281 has more than 65 approved sites,” said Juan M. Kuryla, director and CEO of PortMiami. “Adding MIA as a Magnet Site is a huge accomplishment. It makes Miami a more competitive global gateway for growing international trade and commerce in Miami-Dade County. We welcome MIA to FTZ281.”