San José Foreign Trade Zone 18
and Sister Cities Program
Community and Economic Development Committee
June 27, 2022
Item d(2)
Presenter: Joe Hedges
The Foreign Trade Zone is a federal program created by Congress in 1934 to foster U.S. commerce and trade
City applied and received federal approval in 1974 for San José Foreign Trade Zone 18
City administers the Foreign Trade Zone as a public benefit for San José and the region to facilitate economic growth, support jobs, manufacturing and trade
City of San José – Grantee of Foreign Trade Zone 18
A site in the U.S. that is outside of a U.S. Customs area – the site is considered to be in international commerce.
Foreign merchandise is admitted into a Foreign Trade Zone duty free – duties are paid at the time of entry into the U.S. Customs area.
A company is able to delay, reduce or eliminate duties on foreign merchandise that is admitted into a Foreign Trade Zone.
Foreign Trade Zone
San José and all cities and towns in Santa Clara County Santa Cruz, Scotts Valley
Fremont, Hayward, Newark, Union City
San José Foreign Trade Zone 18 was reorganized in 2012 with a federal designation which streamlined the application and federal review and resulted in significant growth of the Foreign Trade Zone San José Foreign Trade Zone 18 Service Area
Maxar Space LLC Epoch International Enterprises, Inc.
Lam Research Corp. Innovusion , Inc.
Tesla, Inc.
RK Logistics Group
Bloom Energy Corp.
Enovix Corp.
Roambee Corp.
Foreign Trade Zone Subzones Operating
Under the City’s Foreign Trade Zone
$10 - $25 billion in merchandise received
$5 - $10 billion in exports from the Foreign Trade Zone 25,000 – 26,000 Employed in the Foreign Trade Zone
Source: 82nd Annual Report of the Foreign Trade Zones Board to the U.S. Congress San José Foreign Trade Zone 18
Financial savings and operational benefits help to maintain business operations in the U.S. that might otherwise shift to an overseas location A stimulus for attracting foreign investment
Supports employment in the U.S., the manufacturing sector and U.S. exports
Enhances the global competitiveness of companies operating in the U.S.
Foreign Trade Zone Benefits
San José is a charter member of the national Sister Cities program, since the establishment of the program in 1956 by President Dwight Eisenhower
A Sister City affiliation is a permanent official city-to-city relationship between a U.S. city and an international city
Encourages international citizen diplomacy, collaboration and exchanges in education, the arts, economic development, sport, civic affairs and other community programs
Sister Cities Program
Okayama, Japan (1957)* Ekaterinburg, Russia (1992)
San José, Costa Rica (1961) Guadalajara, Mexico (2014)* Veracruz, Mexico (1975)
Tainan, Taiwan (1977)*
Dublin, Ireland (1986)*
Pune, India (1992)*
*Denotes Sister City Program with active community organization San José’s Sister Cities
Discussion / Q&A
Joseph Hedges
International Affairs Manager
[email protected]
408-535-8186