This week federal Minister for Innovation, Science, and Economic Development announced Vancouver Island is designated a Foreign Trade Zone (“FTZ”) in partnership with the Vancouver Island Economic Alliance (see news story here). The only other designated FTZ in B.C. is the Port of Prince George.
The designation is significant in terms of economic trade and international trade for Vancouver Island. Companies on Vancouver Island will now have the opportunity to leverage the benefits of reduced taxes and tariffs on imported raw materials that are made into finished goods. For goods that reach the export market any tariffs will be eliminated entirely. For goods that enter the domestic market, tariffs will be deferred until they reach the Canadian market.
This announcement will aid economic development for Vancouver Island’s growing manufacturing sector. Vancouver Island is uniquely positioned to benefit from its manufacturing base, deep water sea ports and airports.
This designation will open up Vancouver Island to international trade and world markets such as Asia and South America. By importing raw materials to Vancouver Island businesses can take advantage of reduced tariffs and trade as a hub for international trade and commerce.
The announcement of an FTZ is significant from an immigration perspective. International investors that want to invest in a new or existing business will receive economic advantages of reduced taxes and tariffs. This could involve traditional manufacturing or any one of Vancouver Island’s new burgeoning industries, such as wine and spirits.
It is an exciting time to be doing business on Vancouver Island. If you are interested in knowing more about this FTZ designation give us a call today.