Foreign trade zones in Kansas provide a duty-free and quota-free entry point for foreign goods into specific areas under customs supervision for an unlimited period of time. Kansas has three such zones, located in Kansas City, Topeka, and Wichita. The Kansas City zone has five operations, including 400,000 square feet of underground space available for dry storage, freezer storage, or refrigeration; a five-acre site with 220,000 square feet of above ground covered space; a second five-acre site with a 26,000 square-foot warehouse; a 50,000 square-foot warehouse; and 23 acres on the Missouri River. The Topeka zone encompasses nearly 3,400 acres at three locations: Forbes Field, Phillip Billard Airport, and the Topeka Air Industrial Park. The Wichita zone encompasses 280 acres and includes 800,000 square feet of covered warehouse and assembly space, as well as building sites for new manufacturing facilities. Goods brought into a zone or sub-zone may be stored, manipulated, or mixed with domestic or foreign materials used in manufacturing processes or exhibited for sale. Anything shipped out of a zone into the United States customs territory is then subject to duties. Goods reshipped to foreign nations are never subject to U.S. customs duties.
Kansas is a Right-To-Work state by Constitutional Amendment.
The 2001 Legislature passed two measures designed to increase the amount of electric power generated in Kansas. These measures provide incentives for the construction or expansion of electricity generating facilities for both independent power producers (so-called "merchant power plants") and rate-based utilities. Independent power producer facilities are exempt from property taxes from the commencement of construction and for 12 years after the taxable year in which construction is completed. The eligibility period for plants used exclusively during peak load periods is six years. Electricity generation facilities constructed by regulated public utilities are exempt for ten years (four years for peak load plants). Nuclear power plants do not qualify for these exemptions, and power plants using renewable energy sources are not eligible to receive the public utility exemption. Transmission lines and appurtenances constructed by regulated public utilities after January 1, 2001, also receive a ten-year property tax exemption. The two laws also authorized the Kansas Development Finance Authority to issue revenue bonds to pay the construction costs of pollution control equipment at power plants.
The Trade Development Division of the Kansas Department of Commerce & Housing can help your company sell its products in international markets through the following programs.
Many companies that could export products overseas do not always have sufficient working capital to do so. The Export Loan Guarantee program was established to help companies obtain financing to participate in export transactions. Having one of the few export finance programs in the nation, the State of Kansas can issue loan guarantees to encourage lending institutions to provide financing to small companies for participation in export orders. The guarantee protects the lending institution 90 percent (90%) against exporter non-performance risk. If the exporter is unable to fulfill the terms and conditions of the export contract, the state reimburses the lending institution 90 percent (90%) against losses incurred on the export loan. The program works well with companies that engage in large dollar value contracts with long production cycles. The guaranteed loan bridges the gap between when suppliers need to be paid and when payment is received from the foreign buyer. With a maximum guarantee amount of $360,000, the program can support a loan of up to $400,000. If working capital requirements are above this amount, the Export Loan Guarantee program participates with the U.S. Small Business Administration (SBA) in helping secure larger loan amounts.
Upon approval, the Kansas International Trade Show Assistance Program (KITSAP) will reimburse up to one-half of your firm's direct exhibition-related expenses, up to $3,500 per foreign show or $1,500 per domestically held international show. A company can receive total reimbursements of $3,000 for domestically held international shows or $7,000 in total combined financial assistance annually. Examples of reimbursable expenses include:
Booth utility costs
Transportation of equipment or materials (to foreign shows only)
Booth furniture and/or equipment rental
Interpreter fees at the show
Translation fees for exhibition materials
Market research assistance is available at no cost for your product in international markets. With Kansas state offices in Australia, Europe, Mexico, and Japan, our professional, multi-lingual staff offers direct and immediate assistance, information, introductions, and qualified agent/distributor searches around the globe.
The KDOC organizes several trade missions every year. Kansas companies are invited to participate in these missions that are frequently led by the Governor.
Rebecca Bouska, Deputy City Administrator