Businesses import foreign merchandise without customs entry or duties.
The US Department of Commerce has announced that The International Gem Tower, situated in the heart of New York’s Diamond District, has been approved as a Foreign trade Zone (FTZ).
The approval means businesses in the tower will no longer have to pass their imported foreign merchandise through customs and must only pay US duties after the goods are sold. No duty will be payable on re-exported items.
Real estate developer Extell senior vice president Raizy Haas said: "We are developing a world class industry centre for the diamond, gem and jewellery trade and approval of the FTZ status is another key milestone in our development schedule."
He added: "In 2012, New York will finally have a modern industry building to house the trade. And in addition to the beautiful design and technical innovation, we are focused on providing the services and amenities that drive value for our buyers."
Fronting onto 47th Street, the 34 floor tower has been designed as a modern infrastructure for light jewellery manufacturing, including diamond cutting and polishing, and laser engraving. Purpose built for the gem and jewellery trade, the building will also offer an executive club for condominium owners and possibly an Exchange.
The tower is still under construction, with the below grade concrete and metal deck work nearing completion. Almost 20 percent of the total steelwork in the building has been fabricated and installed, with work on utilities and slab on grade work expected to take a further three months.