Presented by: Pinellas County International Trade Overview February 18, 2016 Brent Barkway Pinellas County Economic Development

Tampa Bay International Market Overview Video: Tampa Bay International Market Overview 0Rpe8DziXjudkp2Sn9psBht7GI3LDneZ&index=1

Tampa International Airport FY2015 ■ 684,799 international passengers in 2015, an increase of 14.9%. ■ 73% percent growth in international passenger traffic since ■ Lufthansa to Frankfurt, 5 days/week ■ Copa to Panama, 4 days/week ■ Edelweiss to Zurich, 3 days/week, traffic up 40% in 2015 ■ Air Canada, traffic up 18.5% with additional service to Toronto

Port Tampa Bay ■ 36 million tons of cargo ■ Nearly 900,000 passenger moves a year ■ Top trade partners include Brazil, Trinidad, Mexico, Honduras, Canada, India, Japan, Colombia, China, and Venezuela ■ Post-Panamax gantry crains. At full build out, the container terminal will be 160 acres.

Overview of International Trade Initiatives ■ Tampa Bay Export Alliance ● Trade Missions ● International Town Hall, May 6, 2016 ● Foreign Direct Investment ■ Enterprise Florida Trade Missions ■ U.S. Commercial Service ■ SBA International Finance ■ Foreign Trade Zone 193 ■ Small Business Development Center (SBDC)

TBEA: Trade Missions ■ Panama, October 2014 ■ Chile, December 2014 ■ Canada, October 2015 ■ Costa Rica, April 12-16, 2016 ■ Mexico (EFI), May 23-26, 2016

TBEA: Trade Missions What is a Trade Mission | Chile 2015 Video: Tampa Bay Trade Mission to Chile mfa2Q4&index=3&list=PL0Rpe8DziXjudkp2Sn9psBht7GI 3LDneZ

Enterprise Florida | Trade Missions & Grants ■ Enterprise Florida, the state’s economic development organization, travels each year to destinations as diverse as Korea, Paris and Dubai to encourage the export of boat manufacturing, medical devices, aviation and aerospace products and more. ■ Eligible small and medium-sized manufacturers and professional services providers can apply for a Target Sector Trade Grant to help offset trade show booth costs and enable them to exhibit in trade shows that Enterprise Florida participates in, as well as other approved trade shows and exhibitions in target sectors. Reimbursement is 50% of exhibition space and basic booth decoration package, up to $6,000.

TBEA: Foreign Direct Investment ■ Trade missions incorporate leads from foreign companies considering locating and investing in the Tampa Bay region. ■ 480 foreign-owned companies from 41 nations operating in the eight county region and employing more than 41,500 workers ● Monin ● Nielsen ● BIC Graphics ● Gerdau Ameristeel ● CAE, USA ● Bankers Financial

TBEA: Foreign Direct Investment Retail Chains Canada ■ Circle K ■ TD Bank France ■ Fantastic Sam’s Germany ■ Aldi ■ Trader Joe’s ■ T-Mobile/Metro PCS ■ Einstein Bros Bagels Italy ■ Lenscrafters / Pearle Vision / Sunglass Hut Japan ■ Tires Plus/Firestone ■ Tire Kingdom/Midas ■ 7-Eleven ■ Sprint/Boost Mobile Luxembourg ■ Leslie’s Swimming Pool Supplies ■ Weight Watchers Netherlands ■ Shell / Jiffy Lube United Kingdom ■ PetSmart ■ Holiday Inn / Staybridge /Candlewood

TBEA: Tampa Bay International Town Hall ■ Friday, May 6, 2016 at Port Tampa Bay ■ Celebrating International Trade Month ■ Annual event to update the community on progress with international trade initiatives ■ Partners ● Pinellas County Economic Development ● Tampa Hillsborough Economic Development ● Tampa International Airport ● Port Tampa Bay ● Visit St. Pete/Clearwater | Visit Tampa Bay

U.S. Commercial Service ■ Co-located at Pinellas County Economic Development offices in Clearwater. ■ U.S. Commercial Service trade professionals in more than 75 countries help U.S. companies to export or increase sales to new global markets. ● Identify and evaluate international partners ● Create market entry strategies ● Navigate international documentation challenges ● Other export related guidance ● Offer Gold Key Matchmaking services

U.S. Commercial Service Gold Key Matchmaking Services ■ Meet one-on-one with pre-screened buyers, sales representatives, and business partners through our Gold Key Service. ■ Leverage customized market briefings, research, and advice. ■ Meet with agents, distributors, government and industry officials, and prospective customers. ■ Gauge the sales potential for your products or services with individualized reports on global markets. ■ Discover which factors influence prospective customers, identify your competitors, and obtain pricing for comparable products.

SBA International Finance Assistance ■ Their mission is to provide the help you need to compete in today's global marketplace. ■ Export Loans: SBA provides a number of loan programs specifically designed to help develop or expand trade and export activities. ■ How to determine your export readiness ■ Training and counseling information ■ Worksheets for global market research ■ Financing information and options ■ Customizable export and marketing plan templates

Foreign Trade Zone 193 | FTZ 193

FTZ 193 | What is a Foreign Trade Zone Secure areas usually located in or “adjacent to” a Customs Port of Entry ■ Geographically inside the U.S. but legally outside the U.S. Customs territory for duty purposes ■ FTZ 193 will include Pinellas, Pasco and Hernando Counties ■ Goods in zones are considered to be part of international commerce, not domestic ■ It is only once goods leave the zone to enter the commerce of the U.S. that normal tariff and Customs regulations apply to those goods

FTZ 193 | National Benefits of an FTZ Makes US operations become more globally competitive  U.S.-based producers have less incentive to move operations overseas  Local communities have a tool for attracting U.S. and foreign investment  More exports to global markets  Well-paying and sustainable jobs kept in the U.S.

FTZ193 | Zone Benefits  Basic Premise - Import duties & Federal excise tax are not paid until, and unless, the goods enter the commerce of the United States  Defer, reduce and eliminate  Duty deferral  Duty elimination on exports  Duty reduction (inverted tariff relief)  Duty reduction/elimination on scrap/waste  Weekly entry  Direct Delivery

FTZ 193 | Duty Deferral & Elimination on Exports Deferral  May delay payment until closer to generation of sales revenue Example: Seasonal goods  May delay payment until a reduction or elimination opportunity arises further down in the supply chain  Provides for better cash management Elimination  U.S. Duty not paid on merchandise EXPORTED from the zone  Merchandise never enters commerce of U.S.  No merchandise processing fee on exported merchandise

FTZ 193 | Duty Reduction in Production  Also known as an inverted tariff  Manufacturing new products  Lower tariff rate is applied to the finished product  Classification & duty rate of merchandise as admitted OR Classification & duty rate of finished product removed from the zone (can be duty rate of zero)

FTZ 193 | Questions To Consider for Potential FTZ Users Do you manufacture, assemble or process imports? Do you export previously imported materials? Do you regularly pay more than $ per week in merchandise processing fees? Do you have to wait long periods of time for your orders to get through customs? Do you scrap, reject, destroy, waste, or return some of your imports?

Where to Start? The Florida Small Business Development Center ■ The Florida Small Business Development Center in partnership with Enterprise Florida offers professional consulting for businesses to help them create a customized Export Marketing Plan. ■ The plans are targeted to Florida manufacturers and professional service providers that are new to exporting and that have been in business for two years with five or more full- time employees and $500,000 to $10 million in annual sales. ■ Cost to Qualifying Companies – as little as $500 The cost for preparation of an Export Marketing Plan is $4,000. Qualifying companies are eligible for a $3,500 scholarship, making the cost to your company $500.

What’s Next

Upcoming International Initiatives Trade Mission to Costa Rica  Trade Mission - April 12-15, 2016  San Jose, Costa Rica  Gold Key Matchmaking Grants Available Tampa Bay International Town Hall  Friday, May 6, 2016, at Port Tampa Bay EFI Trade Mission to Mexico  May 23-26, 2016  Mexico City

Questions? Brent Barkway (727)