Northern Nevada’s free trade zone expanding

Scott Sonner

Tuesday, March 7, 2000 | 11:03 a.m.

RENO, Nev. - A key component of northern Nevada's economic development effort just got a lot bigger - more than 100 times bigger.

The U.S. Customs Department has approved the expansion of a foreign trade zone in the Reno-Sparks area from the current 64 acres to nearly 7,500 acres.

The expanded trade zone - from three warehouses to seven - was requested by the Economic Development Authority of Western Nevada. It includes sites in Fernley, Stead and the Tahoe-Reno Industrial Park near the Tracy Power Plant east of Reno on Interstate 80.

The designation allows domestic movement of foreign items to take place as if it were outside the United States. That means goods can remain in a free trade zone duty-free until domestic distribution.

The expansion is "an integral part of the community's economic development package," said Russ Romine, president of the Nevada Foreign Trade Services Inc.

"As the northern Nevada region continues to emerge as a leading global distribution point, foreign trade zone operation scan add additional value for firms engaged in international trade, while also promoting the growth of U.S. jobs," he said.

Chuck Alvey, EDAWN's chief operating officer, said he's excited about the potential.

"By establishing the region as a primary distribution hub, we plant the seeds for larger scale manufacturing and development," he said.

The zone has been in place for 10 years.

"But it's been relatively small and not very flexible," Romine said.

About $17 million worth of merchandise from 18 countries passed through last year, mostly electronic goods.

"We anticipate seeing more components for manufacturing or processing operations of a higher technology types of things. It could be computers or the semiconductor industry and things like that," he said.

Most of the trade currently comes from the Pacific Rim.

"But that too may change. There may be a higher European content in the future," he said.