A Foreign Trade Zone (FTZ) exists on Kodiak, which effectively eliminates import tariffs for goods that stay in the specified areas.  An FTZ is a specifically designated area in, or adjacent to, a customs port of entry, where all merchandise is considered to be in international commerce. The area is considered to be outside of US Customs territory. Tariffs on merchandise in FTZs can be deferred, reduced or in some cases eliminated. FTZs make it easier for businesses to work with customs.

FTZs can provide importers and exporters an economical solution for cargo storage, merchandise manipulation or manufacturing needs, and efficient distribution of domestic or foreign goods. If the final product is exported from the US, no US customs tariff or excise tax is levied. If the final product is imported into the commerce of the US, tariffs and excise taxes are due only at the time the merchandise is transferred from the FTZ and formal customs entry into the US is made. In November 2004 the U.S. Department of Commerce and their Foreign-Trade Zones Board approved the application for the activation of Kodiak Foreign-Trade Zone No. 232, the first facilities to receive designation in Southwest Alaska.

Lash Marine Terminal
Marion Owen

The current FTZ sites are: 3077 acre tract at Narrow Cape 45 miles from the City of Kodiak. The Kodiak Launch Complex targets satellites up to 8,000 pounds requiring high inclination, low earth orbits. 4 acre tract - Port of Kodiak Pier II. Pier II is essential to not only the fishing industry but also for all types of deep sea vessels. 4.46 acre tract - Port of Kodiak Pier III. Pier III is essential to all types of deep sea vessels. Pier III is operated by CSX Lines and is the primary location for receipt of containers. 380 tract encompassing Near Island and St. Herman Harbor. Near Island houses the Fishery Industrial Technology Center serving as a connection between commercial fisherman and seafood scientists. 4.39 acre tract known as Fuller's Boatyard Industrial Center. Fuller's Boatyard has full service repair shops including a marine woodshop, marine repair shop and marine oriented metal fabrication shop, all adjacent to many of the seafood processors. The vessel owners and support businesses intend to import products and then use the boatyard as a warehousing facility for products that will be used on the boats. The site may also be used as a storage facility for certain value added seafood products destined for overseas markets. 5.48 acres along the waterfront facing Near Island houses the True World Foods complex. 13 acre tract and a 32 acre tract owned by the Natives of Kodiak. These industrial parks are located within one mile of the Port of Kodiak. One site is undergoing improvements, the other is undeveloped. The Natives of Kodiak are pursuing clients for tis two well placed, adjoining industrial parks along the main highway between the city, port and airport and is on the principal route to the Kodiak Launch Complex. 611 acres encompassing Kodiak Airport. It is expected that many of the high value machines, parts and other equipment destined for the space port will arrive by air to Kodiak Island's only airport. 78.5 acre site owned by Lash Corporation will serve as the primary ocean cargo reception for the Alaska Orbital Launch materials. Koniag, Inc. (a major Regional Native Corporation) owns two designated zone sites: Bruhn Point, a 44 acre tract at the head of Women's Bay; and Frye Point, a 9.16 acre tract that backs out to the deep water in Women's Bay. 1.5 acres encompassing the City of Old Harbor, located on the southeast coast of Kodiak Island. Old Harbor plays an important role in trading and economic development projects on Kodiak Island because of its strategic location in a protected harbor on the Gulf of Alaska and the Pacific Ocean.