Port Mansfield Joins Foreign-Trade Zone

The Port of Port Mansfield in Texas has announced that it has become a part of Foreign-Trade Zone (FTZ) No. 12, helping it prepare for additional growth along the Texas Gulf coast.

The shallow-draft port is located in Raymondville, between the ports of Corpus Christi and Brownsville, one mile from the Intracoastal Waterway.

It is not a deep-draft competitor to Brownsville but offers a 17-foot authorized depth from the jetties through the harbor and turning basins, funded through federal appropriations and executed by the Corps of Engineers. The authorized channel width is 700 feet, and more than 1,500 acres of land are available for both commercial and residential plots.

A newly completed commercial staging dock and seawall were supported by the Texas Department of Transportation’s Maritime Division funding, along with local partnerships. They provide 380 to 400 feet of berthing space. These improvements make the port well-suited to bulk goods, and the facilities allow the port to handle a wide variety of small vessels, hopper barges, flat deck barges and fuel barges, according to the port’s website.

The site notes that from 2020 to 2022, the Port of Port Mansfield’s assets have more than doubled. It has also obtained multiple grants for public and commercial infrastructure. The port is managed by the Willacy County Navigation District.

The recent addition of Willacy County to the service area of FTZ No. 12 strengthens the port’s position, according to a recent announcement. Under the Alternative Site Framework, eligible businesses in and around the Port of Port Mansfield can now pursue FTZ designation for their facilities. This allows goods to be admitted, stored, handled or processed without immediate payment of U.S. duties and certain taxes. Duties are instead deferred until cargoes enter U.S. commerce and may be eliminated if they are instead re-exported. Inventory held for export is also generally exempt from state and local ad valorem taxes, and manufacturers could benefit from inverted-tariff relief when finished products carry a lower tariff than imported components. Participation in a foreign-trade zone therefore can help companies improve cash flow and reduce costs.

The designation does not automatically convert every facility into an FTZ. Companies must still apply and meet certain security and compliance standards as well as obtaining authorization. However, according to the announcement, because FTZ No. 12 is an established zone, activating a site is considered to be relatively streamlined.

Willacy County Judge Aurelio Guerra and the Willacy County Commissioners worked in unison to identify the potential benefits of the FTZ and put the plan in motion to acquire this designation.

“County Commissioners Court was thrilled to receive the notice from the U.S. Department of Commerce approving the expansion of Foreign-Trade Zone 12’s service to Willacy County,” Guerra said. “This is a significant achievement for our county and places us in a stronger position to attract international trade and encourage investment and job creation for our residents in hope of a long-term resilient economy.”