This map shows where six companies have their foreign trade subzones in Chandler. The Chandler City Council voted June 26 to support Intel’s federal application to add three addresses to its subzone where it will have warehouses in the city.
Chandler’s City Council has permitted its biggest employer to expand a special exemption zone that was originally put in place more than 30 years ago.
By approving a resolution at its June 26 meeting, council agreed to support an Intel Corp. request to make a small modification to enlarge a foreign trade zone it’s already been using since 1993.
Intel recently requested city support for the expansion of an approved Foreign Trade Zone 75 subzone in Chandler, which currently encompasses both its west Chandler site and its Ocotillo Campus in south Chandler.
A staff report states that the requested FTZ subzone expansion would add three warehouse sites in Chandler, located at 6615 W. Frye Road, 6760 W. Chicago St. and 555 E. Queen Creek Road. Intel states these warehouses will streamline logistics and operational efficiencies.
Michael Winer, economic development project manager for the city, explained a few of the benefits and restrictions that go with U.S. Customs’ FTZ designations.
“Companies get around paying duties on items shipped in or out of these zones,” Winer said.
Winer said the zones are for manufacturing, assembly and storage only; retail sales are not permitted.
He also said Intel isn’t pursuing a property tax reclassification as part of its federal request, so it costs the city and or other area taxing jurisdictions, such as school districts, nothing to support expansion of the FTZ subzone.
Winer said Chandler has an intergovernmental agreement with the city of Phoenix, which is the official grantee for what the federal government calls FTZ 75.
According to the Federal Trade Commission, goods can be imported into the zone without paying tariffs until they are transferred to U.S. commerce. Certain products, such as those subject to quotas or trade restrictions, might not be allowed in the zone.
Record-keeping and reporting requirements must be strictly followed to ensure compliance with U.S. Customs regulations, the FTC states.
Zones must be operated under the supervision of U.S. Customs and Border Protection. Foreign goods moved through the zones cannot be sold directly to U.S. consumers without going through customs clearance.
Intel’s application is to be submitted to the federal Foreign Trade Zones Board in Washington, D.C., for review and approval.
Here are the six approved Foreign Trade Zone 75 subzones in Chandler:
• Avnet: 60 S. McKemy Ave.
• Catalina Components: 4015 W. Milky Way and 320 S. McClintock Drive.
• Intel: 5000 W. Chandler Blvd. and 4500 S. Dobson Road.
• Rinchem: 6805 W. Morelos Place.
• SKU Distribution: 2225 E. Germann Road, Suite 10.
Jason W. Brooks News Editor | Chandler Independent
Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.
Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.
Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.
Hobbies: Karaoke, bicycling and American Sign Language.
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