Foreign Trade Zone (FTZ) #259

Global Logistics Advantages in the Heart of North America

The Koochiching Economic Development Authority (KEDA) manages a strategically located Foreign Trade Zone (FTZ) designed to give U.S.-based firms a competitive edge in the global marketplace. By utilizing special customs procedures, businesses can significantly reduce costs associated with international trade, including duty deferral, duty reduction, and expedited distribution.

As of 2015, the FTZ designation has been expanded to encompass all of Koochiching County, offering unparalleled flexibility for businesses looking to establish warehousing, manufacturing, or distribution centers anywhere in the region.

The Ranier Advantage: North America’s Busiest Rail Port

The port of entry in Ranier, Minnesota — located just three miles east of International Falls — is the primary U.S. gateway for the CN Rail route from Vancouver to Chicago.

• Strategic Hub: Positioned at the geographic center of CN Rail’s North American network.
• Infrastructure Investment: CN Rail maintains a 10-acre customs inspection facility and specialized siding adjacent to the KEDA Business Park to accommodate high-volume container traffic.
• Multimodal Access: Beyond rail, the region is served by the Falls International Airport (offering daily commercial flights and customs support) and the Highway 53 corridor, providing a direct link to Duluth and Minneapolis.

Key Financial Benefits for Your Business

Locating your operations within the Koochiching County FTZ provides immediate “bottom-line” benefits for companies importing components or finished products:

• Duty Deferral: No customs duties are paid on merchandise until it leaves the zone for domestic consumption.
• Duty Reduction (Inverted Tariff): If finished products have a lower duty rate than the imported components, the lower rate applies.
• Duty Elimination: No duties are paid on items that are re-exported or destroyed within the zone.
• Weekly Entry Savings: Consolidate multiple shipments into a single weekly entry to significantly reduce Merchandise Processing Fees (MPF).
• Streamlined Supply Chain: Benefit from zone-to-zone transfers and increased efficiencies in inventory management.