As one of the largest Foreign-Trade Zones (FTZ) in the United States, Port Houston manages an extensive network of sites across Harris, Waller, and Wharton Counties. Port Houston FTZ plays a pivotal role in national and regional trade, and Waller County is part of the alternative site framework under the Port of Houston Authority FTZ #84. This means a streamlined application process and possible reduced application costs for qualifying companies.
FTZ Overview
Foreign Trade Zones (FTZ), also called Free Trade Zones, are under the authority of the US Customs and Border Protection (CBP). As explained on the CBP website, they are responsible for the transfer of merchandise into and out of the FTZ and for matters involving the collection of revenue. The Office of Regulations and Rulings at CBP Headquarters provides legal interpretations of the applicable statute, CBP Regulations and procedures.
The Port Director of CBP, in whose port a zone is located, is charged with overseeing zone activity as the local representative of the Foreign-Trade Zones Board. He or she controls the admission of merchandise into the zone, the handling and disposition of merchandise in the zone, and the removal of merchandise from the zone. In addition to the Foreign-Trade Zones Act, he or she enforces all laws normally enforced by CBP that are relevant to foreign-trade zones.
Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States' version of what are known internationally as free-trade zones. Authority for establishing these facilities is granted by the Foreign-Trade Zones Board under the Foreign-Trade Zones Act of 1934, as amended (19 U.S.C. 81a-81u). The Foreign-Trade Zones Act is administered through two sets of regulations, the FTZ Regulations (15 CFR Part 400) and CBP Regulations (19 CFR Part 146). Learn more about FTZs here.
Waller County is Part of Port Houston
Waller County is part of the service area under the Port of Houston Authority FTZ #84. This means a streamlined application process and reduced application costs for qualifying companies. Contact us to learn more. See the video to learn more about the exciting benefits of establishing an FTZ in Waller County.
FTZ Advantages
In short, the FTZ allows companies to reduce their taxes on imports and exports while maintaining the local community's ability to collect taxes through agreements with the company. By establishing local sub-zones, communities can use the FTZ program to attract companies that may otherwise locate elsewhere. It is a competitive advantage for those companies needing this support.
Port Houston manages Foreign Trade Zone #84, which includes many privately owned and port-owned sites located throughout the Houston area. The primary benefits come in the form of import duty and tariff savings. For example, customs duties on imported goods entering the zone can be delayed until the cargo is moved out. No duty is paid if the merchandise is exported directly from the zone.
Establish an FTZ in Waller County
Port Houston – FTZ 84
Port Houston manages and administers one of the largest Foreign-Trade Zones (FTZ) in the United States, FTZ 84, which includes many privately owned and/or port-owned sites located throughout Harris, Waller and Wharton Counties.
U.S. FTZs | 2022 |
|---|---|
Total Merchandise Received | $50 Billion |
Exports from FTZs | $10 Billion |
Number of People Employed in FTZs | 9,000 |
Number of Active FTZ Sites | 75 |
Port Houston Stats
Fifth largest container port in the U.S., as well as fifth in loaded imports and third in loaded exports
Fastest growing container port in the U.S.
Largest Gulf Coast container port, handling 73% of U.S. Gulf Coast container traffic.
979,500 jobs are generated from terminal activity.
Houston Ship Channel Stats – Economic Impact
Nation’s largest port for waterborne tonnage
Supports 1.54 million jobs in Texas
Supports 3.37 million jobs nationwide
$439 billion economic impact in Texas
$906 billion economic impact across the U.S.
Port Operations
April Tonnage Report:
Container volume is up by 5% for April, with 324,177 twenty-foot equivalent units (TEUs) handled at Port Houston and YTD container volumes are up 12% at 1,394,094 TEUs thus far this year. Surpassing the 1M TEU mark in Q1.
For April, loaded exports grew, with an increase of 8% and increased 14% YTD to 523,426 TEUs, which can be attributed to the demand for regionally produced automotive, furniture, cotton, and plastic resin goods.
Port Houston’s loaded import volumes increased by 4% in April and 12% YTD, totaling 632,886 TEUs, following a recent surge in new import distribution centers constructed in the area.
Port Houston continues to be the nation’s top gateway for resin exports, with a market share of 60%.
Steel volumes decreased by 32% for April, compared to the same month last year, while other commodities, such as fertilizer, molasses, and tallow, have shown gains.
Total tonnage at Port Houston increased by 4% to 17,559,014 tons YTD.
In response to the increased volumes at Bayport and Barbours Cut Container Terminals, Port Houston is shifting customers to use its Express Pass appointment system. This timeless appointment option allows trucking companies to initiate transactions prior to arriving. It also provides access to dedicated Express Pass lanes and reduces ingate transaction time, which in turn improves truck turn times in and out of the facilities.
Landside capital investments over the next five years (2024 – 2028) = $1.7B
This 1.7B covers combined Barbours Cut, Bayport and Turning Basin investments.
Barbours Cut is $705,784,334
Bayport is $630,776,334
North and South Turning Basin is $382,105,188.
Project 11 – Deepening and Widening of the Houston Ship Channel
By the end of 2024, 21 miles of the expansion project will be completed and open to our customers for safer navigation.
Project 11 is currently 87% funded: approximately $204 million from the U.S. Army Corps of Engineers (USACE) and approximately $847 million provided by Port Houston. Port Houston’s portion has exceeded the typical local cost share of the total.
An additional $154 million in federal dollars is also needed to complete Project 11. Industry members can help by leveraging advocacy together and stressing the importance of funding the Houston Ship Channel.