The Puerto Rico Trade and Export Company (CCE) is the operator of the San Juan Foreign Trade Free Zone No. 61. After the expansion of the area’s boundaries, all the land belonging to the CCE in Mayagüez and the metropolitan area can receive the benefits of operating under the free zone program.
The free zones program is an alternative of economic development for Puerto Rico and growth for companies. The benefits of operating in a free trade zone can mean significant savings in operational expenses and an opportunity to consider new business opportunities locally and internationally.
A Multiple Use Free Zone (General Free Zone) is a defined, controlled access area, considered as if it were outside the territory of the United States Customs Service; located within or adjacent to a port of entry. In the Multiple Use Zone, all types of merchandise that can legally be marketed in the United States and / or in foreign markets can be accommodated.
The warehouse spaces offered by the CCE, and which can be activated under the Free Zone program, have all the necessary components to facilitate transportation, distribution, logistics, storage, re-export and other value-added activities. In addition, they have a strategic location as they are adjacent to port areas and the main taxiways of the Island.
Zone 61 currently offers services to 66 companies in various industrial sectors, including: audiovisual equipment, electronic equipment, pharmaceuticals, food, automotive products, chemicals, perfumery, cosmetics, spirits and footwear, among others.
This Zone makes us one of the largest distribution and re-export centers for the Caribbean and Latin America, as well as a transshipment point for cargo destined for the Caribbean, Central and South America.
Some of our clients are:
- Im Ex Zone Logistics, Inc.
- Sea Air Systems
- Air Green Corp.
- Almacenes del Castillo
- Overseas of the Caribbean, Inc.
- Cosmopar, Inc.
- Castell Exports, Inc.
- El Morro Ship Chandler
- Renwick Corporation
- SMT Duty Free PR, Inc.
- Stone Cold LLC
Free Zone Benefits
Companies established in the Free Trade Zone can enjoy the following benefits:
- Exemption from the payment of tariffs and duties for foreign merchandise that is admitted to the Area.
- No time limit for the storage of the merchandise, nor the requirement to specify its final destination.
- From the Free Zone the merchandise can be exported or transported to another Free Zone or Sub-Zone without paying tariffs or taxes.
- The tariffs and excise are paid only when the merchandise is introduced in the country; that is, that the payment of tariffs and / or excise taxes may be deferred at the time of sale.
- The merchandise that is moved to the Free Zone for the purpose of its eventual export may be reimbursed for the tariffs paid.
- Free choice to pay the lowest applicable rate, either for the components or the finished product.
- No tariffs are paid for the added value that can be attributed to manufacturing and assembly processes in the Free Zone.
- No tariffs or excise are paid for the merchandise, components or products that are destroyed in the Free Zone, nor for the loss of raw material in the manufacturing processes.
- Exemption from paying inventory taxes for all foreign and domestic merchandise that is kept in the Export Zone.
- The Area is free of the quota restrictions established by the United States.
- Act 159 of 2004, as amended, also exempts from the payment of contributions any movable or immovable property that is in an activated area; including, without limitation inventories and equipment.
There are other alternatives so that companies with particular needs can benefit from it.
A subzone is a controlled access area, within the company’s own facilities, usually manufacturing, whose free zone activities cannot be transferred or established in a General Free Zone. In this case, the company’s premises become its boundaries and from there they can operate under the program.
Subzones are subject to the same regulations and parameters as a General Free Zone. Among the companies that participate as sub-areas we can mention: Pepsi Cola Manufacturing and Baxter.
The Free Zones Board also provides to expand the multi-use free zone through an expansion mechanism to private land, which is achieved through the authorization of the land owner so that they can be used as under the free zone program. . These private lands are then included as part of the boundaries of the Area.
Therefore, the business can operate as a free zone from its own facilities, obtaining all the benefits that the free zones program offers. This also includes the opportunity to carry out manufacturing processes with express permission from the Board of Free Zones for such activity. These expansions of the multipurpose area are generally used for warehousing and distribution businesses.
Among the companies that participate in the program as a distribution sub-zone are: Garage Isla Verde, Rooms to Go Puerto Rico, Able Sales Company, Trafon, Bella International, among others.