LATAM Airlines Group has begun moving aircraft parts from Chile to its maintenance facility at Miami International Airport (MIA) for repair and then shipping them back to South America, all free of federal import duties due to its new status as an operator in MIA’s Foreign Trade Zone (FTZ) magnet site.
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The South American company is the first approved operator within the Miami FTZ magnet site that allows airport tenants to import materials that can then be manufactured, repaired, stored and/or redistributed at any MIA location with federal tariffs on those materials deferred, reduced or eliminated, providing time and cost savings.
Companies within an FTZ can defer payment of duties until the goods leave the facility, reduce duties on combined finished goods rather than individual products, and waive duties on goods that are imported into the facility and then re-exported.
“We are very proud and excited to be the first airline to achieve this important certification at MIA. This opens the door to significant benefits and savings opportunities for cross-docking technical materials into and out of the United States. In the long term, this certification will provide LATAM Airlines with more opportunities to expand in the FTZ“, said Ricardo Zuniga, Director of the MIA, LATAM Airlines.
Companies that handle high-traffic goods in the MIA, such as pharmaceuticals, electronics, textiles, automotive parts, aircraft parts, avionics, machinery equipment, consumer goods and perishables, are ideal operators for the Miami FTZ magnet site.
Miami (MIA) is consolidating its position as the busiest airport in the United States and the ninth busiest airport globally for international cargo. Last year, MIA maintained its record of 2.7 million tons of cargo and mail set in 2021 by moving 2.2 million tons of international cargo and 500,000 tons of cargo domestically.
“We applied for magnet site designation to make MIA even more cost-effective for our cargo partners, and we are delighted to see LATAM Group leading the way in leveraging this new service. The magnet site opens the door to a variety of time and cost saving opportunities for cargo handlers at MIA”, said Ralph Cutié, Director and CEO of MIA.
The Miami FTZ magnet site, approved by the U.S. Department of Commerce prior to the outbreak of the pandemic, is an expansion of the existing Miami-Dade County FTZ 281 provided by PortMiami. To become an FTZ operator, MIA tenants must complete an application with PortMiami and then receive approval from U.S. Customs and Border Protection, a process that takes approximately 30 days.
