Foreign-Trade Zones (FTZ's) were created in the United States to provide special customs procedures to U.S. firms engaged in international trade-related activities. These procedures were aimed to offset customs advantages available to overseas producers who compete with domestic industry. Businesses locating in an FTZ can take advantage of a number of financial and timesaving benefits including duty deferral, duty reduction, and streamlined distribution. There are currently 256 General-Purpose Zones and 538 Subzones in the U.S. - 3 General-Purpose Zones in Minnesota.


With the continued surge in international trade and globalization, logistics providers are anticipating double-digit growth in annual container volume. By 2020, the U.S. transportation system is expected to handle about 23 billion tons of cargo valued at nearly $30 trillion dollars. This tremendous growth, especially from China, has prompted a significant investment in the logistic and transportation sectors throughout North America. CN Rail and the Canadian Government have recently committed over $170 million dollars in the Phase 1 development of the Prince Rupert, British Columbia port and rail terminal to accommodate the increase in container volume.

The port of entry into the U.S. for CN rail from the Vancouver to Chicago route is Ranier, Minnesota - three miles east of International Falls. Based on this increased rail traffic and the shift in the type of cargo and the country of origin, the Koochiching Economic Development Authority (KEDA) has positioned itself for this opportunity by creating a FTZ and a 90-acre business park just south of Ranier adjacent to the CN main line. The KEDA is developing a site plan that will accommodate warehousing opportunities for companies that could utilize the FTZ and the central location of International Falls to support distribution and logistics operations. Additionally, the FTZ site is located near a number of Customs Brokers with years of handling international freight and commodities.

International Falls is also served by a recently expanded airport that provides daily commercial passenger service and customs support, as well as the Highway 53 corridor connecting to Duluth and Minneapolis through Interstate 35.


CN Rail has just completed the purchase of 10 acres of land in the KEDA Business Park south of Ranier to build a $5 million dollar customs facility. This facility is part of the overall strategy and investment by CN to accommodate the additional container volume.

Koochiching County was granted a General Purpose Trade Zone by the Foreign Trade Zones Board in November of 2003. The General Purpose Zone is a Federal designation and encompasses over 700 acres in three defined locations - 1 acre at the International Falls-Koochiching County Airport; 700 acres 3 miles east of International Falls in the KEDA Business Park; and 8 acres of the International Falls Business Park at 22nd Street and Highway 53 in International Falls. Forty-eight acres of the FTZ - part of the acreage east of International Falls and including the entire International Falls Business Park - are also designated as JOBZ (see below) providing a unique opportunity to take advantage of both programs.