San José Foreign Trade Zone 18
and Sister Cities Program
Community and Economic Development Committee
Item (d)3.
June 24, 2024
Joseph Hedges, Office of Economic Development and Cultural Affairs • The Foreign Trade Zone is a federal program passed into law by Congress in 1934 to foster U.S. commerce and trade
• City applied and received federal approval in 1974 for the San José Foreign Trade Zone, the 18th Foreign Trade Zone established in the U.S. • 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 – Foreign Trade Zone 18 Grantee
2 • A site in the U.S., through federal designation,
considered to be outside of a U.S. Customs
area.
• Foreign merchandise is admitted into a Foreign
Trade Zone duty free – duties are paid only if
the merchandise enters into U.S. Customs
area.
• A company is able to delay, reduce or eliminate
federal duties on foreign merchandise that is
admitted into a Foreign Trade Zone.
Foreign Trade Zone
3 San José and all cities and towns in Santa Clara County Santa Cruz Scotts Valley
Fremont Hayward
Newark Union City
Foreign Trade Zone 18 Service Area
4 Companies Operating Under Foreign Trade Zone 18
5 • Financial savings and operational benefits help to maintain and grow business operations in the U.S.
• Supports employment in the U.S., the manufacturing sector, U.S. exports and investment in the U.S.
• Enhances the global competitiveness of companies operating in the U.S. and protects companies in times of trade uncertainty.
Foreign Trade Zone Benefits
6 Nearly $25 billion in merchandise received
$6.2 billion in exports from the Foreign Trade Zone
30,000-plus Employed in the Foreign Trade Zone
Source: Reports submitted by FTZ 18 operators
2023 Foreign Trade Zone 18 Activity
7 • San José is a charter member of the national Sister Cities network and established one of the nation’s first Sister City affiliations. • 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.
San José Sister Cities Program
8 San Jose’s Sister Cities
Okayama, Japan (1957)* Dublin, Ireland (1986)*
San José, Costa Rica (1961) Ekaterinburg, Russia (1992) Veracruz, Mexico (1975) Pune, India (1992)*
Tainan, Taiwan (1977)* Guadalajara, Mexico (2014)*
*Sister City Program with active community organization 9 Sister Cities in San José – Dublin Delegation
10 Sister Cities in San José
11 San José Foreign Trade Zone 18
and Sister Cities Program
Community and Economic Development Committee
Item (d)3.
June 24, 2024
Joseph Hedges, Office of Economic Development and Cultural Affairs