Prince George s County s Foreign Trade Zone 63

1. Prince George�s County�s Foreign Trade Zone 63

2. Ideal Location

3. Ideal Location Proximity to 1/3 of the Consumer & Industrial Market (Overnight Delivery) Direct Flights to US West Coast, Eastern & Western Europe Three Major Airports Region is 5th Largest Retail Market, 4th Largest Population Center Proximity to US Federal Government 1/3 of Federal Spending in Region $8.7 Billion in Federal R&D Obligations

4. What is a U.S. Foreign Trade Zone? A Foreign-Trade Zone is a specially designated area, in or adjacent to a U.S. Customs Port of Entry, which is considered to be outside the Customs Territory of the U.S. A Public/Private Partnership to maintain and attract U.S.-based international trade activity. Source: http://www.ftzcorp.com/Whatis.htm

5. Establishment of Foreign-Trade Zones To encourage and expedite U.S. participation in international trade To foster dealing in foreign goods imported not only for domestic consumption but also for re-export after combining with domestic goods To defer payment of duties only until goods are entered into the commerce of the U.S.

6. What activity is permissible in a Foreign Trade Zone? In a Zone Merchandise may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed and destroyed Retail Trade is Prohibited

7. FTZ Benefits Duty is deferred for products admitted to the FTZ Duty is eliminated on products imported to and exported from FTZ outside the US Duty is eliminated on products admitted and subsequently destroyed within the zone Duty is reduced on imported products admitted to the FTZ due to inverted tariffs

8. FTZ Benefits (cont.) Merchandise may be transferred from zone to zone, extending the period of deferral Users may obtain permission from Customs to move merchandise directly from the port of entry of the FTZ Weekly entry and export is available to reduce administrative reporting Duty is deferred on production equipment admitted to the FTZ for assembly and testing until placed in use

9. Inventory Tax Exemption 100% exemption from personal property assessments for commercial inventory, manufacturing/R&D inventory and manufacturing /R&D machinery within the FTZ (2005/2006 tax year and continuing until changed).

10. Current Trends Manufacturing volumes in many sectors are moving offshore, particularly Asia. Companies are mapping their supply chain to reflect commodity flows, transportation, labor and proximity to customers. Supply chain consolidation is supporting �Big Box� regional distribution over smaller feeder warehouses that supply fewer customers. Big Box distribution by importers combined with a 2000 Amendment to the Foreign-Trade Zones Act providing for weekly entry is spurring growth in the program by a new profile of users.

11. Opportunities Over $200 billion (in value) of merchandise is received at FTZs annually. Duty may be payable in accordance with the inverted tariff applicable to the finished product as removed from the zone, depending upon which is lower. Business-to-Business seamless transactions reducing supply chain cycle time � direct delivery, weekly entry and weekly export. Communities can retain existing jobs, attract new jobs and gain developer investment in the local community

12. Aerial view photo

13. Master Plan

14. Steeplechase 95International Business Park Foreign Trade Zone 63

15. Description of the Site Steeplechase 95 International Business Park is a 110-acre mixed-use development located at the Capitol Beltway (I-495) and the new Ritchie Marlboro Road interchange. The business park offers individual sites that can accommodate buildings from 50,000 to 500,000 square feet, excellent access, visibility, and ample amenities

16. Proposed Amenities at Steeplechase 95 International Business Park Restaurants Banks Gas and Convenience Stores Offices for International Agencies (conceptual) New Product Exhibition Space (conceptual) Meeting Space (conceptual) Small Trade Offices with Shared Services (conceptual) Advanced Telecommunications systems Landscaped Park-like setting w/ hiker-biker trails (conceptual) Video conference Suite (conceptual) Secure and Well lighted common areas WiFi Internet access (conceptual Supporting Trade Facilities and Operations (conceptual) Public Transit Accessibility On Site-Parking

17. Proposed Amenities at Steeplechase 95 International Business Park INTERNATIONAL TRADE SERVICES BUILDING 220 room 4-star hotel Hotel condo units serviced through the concierge 75,000SF+ office space to include an 11,000SF office block to accommodate an international incubator and small trade offices Meeting rooms Small exhibition space Underground structured parking

18. Premium Location Located at I-95 in one of the most commercially desired areas in Prince George�s County, Maryland: Foreign Trade Zone Maryland Enterprise Zone State of Maryland Priority Funding Area

19. Premium Location Over 5.5 million people in Baltimore-Washington Metro area Accessible by I-95 Within an overnight freight haul to over 100 million people 20-30 minutes from the 3rd largest US seaport (Port of Baltimore) and BW Thurgood Marshall International (cargo operations)

20. Provides a Gateway to: The North/South Corridor I-95 (Florida to Maine) I-70 (Ohio Valley) The Port of Baltimore Baltimore Washington Thurgood Marshall International Airport (BWI) Dulles International Airport (IAD)

21. Preferred Market Sectors Housing related industries Auto parts and related products Chemical Products Plastics Rubber Products Joinery Tubes Pigments Essential Oils Perfumery, Cosmetics, Shampoos, Make-up Polymers Electronics Polyethylene Polyurethane Petroleum resins Floor and wall coverings Plates and sheets Wood, cork, and straw products Nickel Specialty steel Aluminum Products Medicines Clothing Medicines Aerospace

22. Maryland�s Manufacturing Incentive Package No gross receipts tax for manufacturers No sales tax on: capital manufacturing machinery and equipment tangible personal property equipment or materials used or consumed in manufacturing Gas, electricity, steam, oil or coal consumed directly or predominantly in a production activity No State or business personal property tax No income tax on foreign dividends (if corp. owns more than 50% of subsidiary)

23. Maryland Enterprise Zone Program The real property tax credit is 80% of the taxes due on the increase in assessed value as a result of the capital improvements in the property over the first five years, decreasing 10 % annually during the following years The income tax credit is a one-or three-year credit for hiring new employees. Generally, $1,000 Economically disadvantaged, $6,000

24. Maryland Research and Development Tax Credit Basic R&D Tax Credit 3% of eligible R&D expenses that do not exceed firm�s four year average Growth R&D Tax Credit 10% of eligible R&D expenses that do not exceed the firm�s four year average

25. Other Tax Credits Maryland Job Creation Tax Credit Maryland Disability Employment Tax Credit Employment Opportunity Tax Credit for Employers Work Opportunity Tax Credit (Federal)

26. Contact Prince George�s County Economic Development Corporation 1100 Mercantile Lane, Suite 115A Largo, MD 20774 Phone: 301-583-4650 Email: info@pgcedc.com