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PAPSCO attributes phenomenal growth to Foreign Trade Zone 136
“One of the big advantages is having a local Customs office…” — Bryan Russell, President, PAPSCO |
Processing and Packaging Supplies Company, Inc. (PAPSCO) is located in an FTZ 136 general-purpose zone near Melbourne International Airport. The company imports blank polyester tubing from Japan into its Melbourne facility where it is processed, labeled and shipped to meat-packing customers in Latin America, Mexico and the Caribbean.
PAPSCO began operating in 1986 with one person. By 1990 it had expanded to three employees; by 1994 there were nine people working there. Then in 1995, the company entered FTZ 136. In just six years, the company’s staff grew to 50.
Prior to entering the FTZ, PAPSCO was forced to pay a significant amount of duty on its imports, much of which was non-recoverable. This placed the company in a poor position to meet customers' demands and remain competitive. Bryan Russell, President, feels that if it were not for the benefits provided by FTZ 136, the company probably would have been forced to abandon its operations.
Russell says "We import several million dollars' worth of raw materials each year, so the duties we save are substantial. This allows us to hire more staff, upgrade our facilities and remain competitive in a worldwide market. One of the big advantages is having a local Customs office at the Melbourne International Airport. We are able to process all our paperwork using Direct Delivery and having the Customs office at the airport makes it so much more efficient. Otherwise, our people would have to travel 27 miles each way for each processing."
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