SCHUMER ANNOUNCES COMMERCE DEPT. HAS APPROVED CRITICAL CROSMAN SUBZONE, THE SECOND PART OF LARGER FOREIGN TRADE ZONE FOR ROCHESTER-FINGER LAKES LOCAL BUSINESSES & CROSMAN CAN NOW INCREASE MANUFACTURING & ADD JOBS; CROSMAN FTZ WILL LEVEL PLAYING FIELD WITH FOREIGN COMPETITORS & MOVE JOB-CREATING PRODUCTION BACK FROM CHINA TO U.S.
Schumer Pushed for Approval of Two Critical Foreign Trade Zone Applications that Would Save Crosman Corporation and Businesses Throughout the Rochester-Finger Lakes From Being Hit With High Duties On Imported MaterialsIn March, Schumer Secured First Approval For Key Ontario County Foreign Trade Zone Designation, Including 4 Other Counties in Rochester Area Wayne, Seneca, Yates & LivingstonNow, Schumer Announces Commerce Dept. Has Approved Second FTZ Application For C
Today, U.S. Senator Charles E. Schumer announced that a Foreign Trade Subzone for Crosman Corporation in Ontario County has been approved by the U.S. Department of Commerce. This is the second of two critical approvals for a Foreign Trade Zone (FTZ) in Ontario County and four adjoining counties throughout the RochesterFinger Lakes region. This approval comes on the heels of the first approval of a larger foreign trade zone (FTZ) for Ontario County and four of its neighboring counties, Wayne, Seneca, Yates, and Livingston Counties. Foreign Trade Zones are designated sites in the United States, licensed by the Foreign Trade Zone Board, where companies can benefit from delayed or reduced customs duties in order to level the playing field with foreign competitors. Schumer explained that the FTZ Board approval of the fivecounty FTZ led by Ontario County was a necessary first step before any individual company, such as Crosman, could be approved for an FTZ subzone. Now that the greater Ontario County application and the Crosman subzone application have been approved, Crosman will be able to import parts, components, and finished goods, now used to manufacture and assemble products in China, and instead bring those parts and finished goods to Ontario County, where newlyhired local workers will assemble the finished products for warehousing and distribution to retailers. This new work has the potential to create up to 25 new fulltime positions over the next three years if Crosman can increase the number of product lines it insources from Asia. Schumer explained that Crosman, which produces airpowered pellet rifles and ammunition, has anticipated the approval of its FTZ subzone - which has been pending for over a year - and budgeted accordingly in the hopes of bringing new work and new jobs to Ontario County beginning in 2014. This establishment of the new FTZ at Crosman is a critical component of Crosman's supply chain strategy going forward, and it will support job growth at Crosman's Ontario County facilities. Schumer noted that this FTZ status for Ontario and the four surrounding counties will only increase their ability to attract new companies and investment.
"I am thrilled that the Crosman Corporation has been approved for its longawaited foreign trade subzone designation, which will level the playing field for Crosman and many other local companies that compete with China and companies in other foreign markets," said Schumer. "Crosman is one of Ontario County's largest employers, and it is seeking to grow even more by bringing manufacturing now done in China back to Ontario County to support up to 25 new jobs over the next three years. I am proud to announce that the Commerce Department has heeded our call and granted Crosman this designation it needs to bring jobcreating production back to New York State. With an FTZ in hand, businesses throughout the Finger Lakes region will save thousands on import duties, money they can now pour right back into their business in the form of expanded production and new hires."
In January, Schumer visited the Crosman Corporation in Bloomfield, where he vowed to fight to win approval of two critical FTZ applications in Ontario County, including one for Crosman Corporation. Specifically, Schumer pushed for the longawaited approval of Ontario County's FTZ application - which included Wayne, Seneca, Yates, and Livingston Counties - as well as the Crosman Corporation's application for an FTZ subzone in a letter and call to Commerce Secretary Penny Pritzker. Delays in the approvals were posing a threat to Crosman's ability to move forward with plans this year to relocate production and assembly work now done in China to Ontario County.
In March, Schumer announced that the U.S. Department of Commerce heeded his call and approved the first and larger Ontario County FTZ zone, opening the door for the Crosman application to be accepted in the coming months. The Ontario County FTZ application was docketed by the federal Foreign Trade Zone Board in August of 2013 and the public comment period closed on October of 2013. However, Ontario County then waited months for the FTZ Board to grant final approval with no response. Schumer then went to bat for Ontario County and urged the FTZ Board to quickly issue approval for the Ontario County FTZ. Schumer highlighted that were are many companies throughout the Finger Lakes, and others in Ontario County that stood to benefit from reduced or delayed customs duties.
Now that Crosman has been approved for an FTZ subzone, which is set to become operational next month, it can begin work to expand production. Schumer noted that a FTZ status for those counties would only increase their ability to attract new companies and investment. With the FTZ, Crosman will now be able to import parts, components, and finished goods, now used to manufacture and assemble products in China, and instead bring those parts and finished goods to Ontario County, where newlyhired local workers will assemble the finished products for warehousing and distribution to retailers. Initially, Crosman intends to insource the production of 30,000 - 50,000 airpowered pellet guns now made in Asia, and has plans to insource more production over the coming three years. The FTZ allows Crosman to only pay duties on the finished product, instead of requiring them to pay duties on the component parts, thus giving incentive for Crosman to manufacture products domestically. With the benefit of the FTZ, Crosman estimates the cost to manufacture its products will be at, or close to, the cost it now pays to manufacture in China. Moreover, the additional product lines that Crosman plans to insource from Asia will provide additional business for Crosman's local suppliers who can now produce some of the component parts for the new product lines.
Phil Dolci, CEO of Crosman Corporation said, "Establishing this Foreign Trade Zone will help keep our company competitive globally, increase our US manufacturing capability, and create U.S. jobs. We appreciate Senator Schumer's support to get our Foreign Trade Subzone operational and grow Crosman here in Ontario County."
"On behalf of Ontario County and the Ontario County Economic Development Corporation, we are very pleased the new FTZ subzone will help Crosman Corporation remain competitive in all its markets and retain and grow jobs here in Ontario County," said Mike Manikowski, Executive Director of the Ontario County The steadfast support and help of Senator Schumer through the Federal approval process was critical to our success in gaining this ED tool for Ontario County and our surrounding neighboring counties."
Crosman is an international designer, manufacturer, and marketer of Crosman pellet, BB rifles and pistols; Copperhead ammunition, high quality Benjamin pellet rifles and ammunition; Airsoft rifles and pistols; crossbows and precision optics. Crosman was founded in Rochester in 1923 and has been a vital manufacturer and employer in the region ever since and now employs over 300 in Ontario County. Its headquarters and primary manufacturing site is in East Bloomfield, Ontario County and it also has a distribution and warehouse facility in the Town of Farmington in Ontario County.
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