A Canadian logistics company on Friday took the wraps off its new storage and distribution facility in a Sanborn industrial park that doubles as a foreign trade zone.
BorderWorx Logistics, which had 10 employees, is pledging to create 86 new jobs because of the expansion in the Vantage Center Industrial Park.
Because the facility is located in the Niagara County Foreign Trade Zone, companies that import and export through the facility are able to forego duties and tariffs until the day that a product ships out of the center.
BorderWorx provides its clients with inventory storage, order procession, returns management and other services.
The $3.7 million project included the construction of a 50,000-square-foot distribution center. The company will receive up to $590,000 in tax credits through the Excelsior Jobs Program if it meets its job creation targets. The company also received a $285,000 grant from the New York Power Authority, as well as a 15-year break on its property taxes from the Niagara County Industrial Development Agency.
The project essentially turned the entire industrial park into a foreign trade zone. The advantage to importers and exporters who operate from a foreign trade zone is that shipments that arrive there are considered by taxing jurisdictions to be outside the United States, so taxes are not required to be paid as long as the product is within the foreign trade zone, said Dean Wood, BorderWorx president and CEO. The appropriate taxes and duties are due when the product leaves the zone.