what is a free trade zone ?? By Jack Mitchell

[TimHollis]

On the O/T Why? I don't understand the logic behind this.. Thread.

 

quote:

---

Tim Hollis,

 

Everybody in this forum envies your position and opportunity – I will admit this freely, that I am indeed jealous.

 

My question back to you is what is a free trade zone and how does it benefit a country(s) or commodity?

 

IMHO – you are just a lucky sob that was not considered in the grand scope of things. (Note: this is not meant to be disrespectful at all).

In other words, I believe your opportunity or success is nothing more than a happy accident hidden within or behind questionable government bureaucracy - to put this mildly.

 

I truly enjoy your comments and outlook to be differing than most others. Please convince me to move where you are – the most striking difference is that at 48 years I know I will probably still be earning a living in 20+ years (only if my eyes can hold out that long).

 

P.S. This thread is so long that I cannot tell if I am hijacking.

 

Regards, Jack

---

Tim Hollis

 

quote:

---

Good Morning, Jack.

 

I would be happy to give a brief posting on American Free Trade Zones, and answer your questions.

 

But before I do, I would like to hear from some of the other members, what I put up, is going to really make some people angry. Like me when I 1st found out, while I still had my own shop and was paying the tab for 80 employees back in NY.

 

There are pluses and minuses for everybody, doing this.

I don’t want to put myself into the Hall of FLAME!

 

I enjoy this Forum, and it's an absolute necessity for me, 1st the problem solving, the interaction, the community spirit.

 

Even though I run a website here for what is called an Ex-Patriot(Ex-pats), and Moderate a message forum laid out similarly like this one for

Members: 4,795, Threads: 25,553, Posts: 161,767.

This is where, I get my SANITY!!

 

So do you guys really want to know how the U.S. Government helps BIG companies, legally manufacture those American Made Products, across the pond?????????

And no, this is not NAFTA, I’m talking about.

 

Let me know.

 

And if yes, should I start it as a new THREAD?

 

Thanks

Tim H.

---

ROBK

quote:

---

--------------------------------------------------------------------------------

So do you guys really want to know how the U.S. Government helps BIG companies, legally manufacture those American Made Products, across the pond?????????

 

--------------------------------------------------------------------------------

 

Oh Yeah....

Spill it all out Tim.

 

Rob

---

MATT QUARLES

 

quote:

---

Let's here it all buddy I want to know:)

---

Should I post??????

Or just e-mail the guys asking about it.

 

Thanks

Tim H.

[biss03]

post it!!

[Müřlıń®]

Exercise your freedoms.....post it!!!

 

 

Murlin

[I2B4U]

convert me

[Lathe-Mill]

now i am curios

[McRae]

I have shorted out my mouse from salivating all over my desk.

 

Send me via email as well, I need to know this.

[Jack Mitchell]

Tim,

 

I'm honored to be mentioned in the thread title.

 

Hurt me Tim - hurt me real bad!

 

Seriously though, do foreign & home grown diplomats really cross our countries with suitcases full of cocaine? Or am I just being naïve here?

 

Blast away Tim – this is an open and public forum with true debate potential. Mostly, I wish to become informed and enlightened as to the real reasons behind what I believe is legalized corruption.

 

If you think the topic too hot, then by all means email this. Personally I would prefer the open forum debate.

 

Regards, Jack

[TimHollis]

Ok guys, I soon as I get back from lunch, I will start posting.

 

 

But if you start getting pissed, remember- I'm just a messenger.

 

Thanks

Tim H.

[chad fisher]

This ought to be neat, a little eduacation never hurts niether. Its nice to see that some here can act like adults and handle a debate in respectful fashion. A little fire is good, but the all out flame wars stink.

[Jack Mitchell]

Andrew,

 

I cannot help but imagine you installing a new mouse and then being strapped into one of those chairs found on a marlin fishing boat. – this is highly anticipated.

 

Its 11:24 let’s hope he takes a half hour lunch – It figures that I have to go to work shortly.

 

Regards, Jack

[Trevor Bailey]

Enlighten(sp) us all.

[TimHollis]

About me, and how I wound up here.

 

I was fortunate enough to spend 8 years in the U.S. Navy, as a Nuclear Propulsion Officer, as a young single man, leaving the country for a 9 month tour out at sea, the schedule was pretty much the same, 2 weeks out, 2 weeks in port. In that time I visited more Foreign countries than there are U.S. States. I had some real experiences. 1986 onboard the U.S. Archerfish, one of three nuclear submarines stuck in a hole of ice, four feet thick, at the North Pole. 45 days of absolute cold, a science expedition we were told, 3 layers of clothes and blankets when you went to your bunk. Outings topside, dressed in the latest Artic gear and Cosmoline smeared all over your face to prevent frostbite. After a half an hour you could not tell where the heavens met the earth, everything was just white. Forget about what going to the head involved. Since I could only watch Walt Disney’s, Bambi so many times, I spent allot of time reading out at sea.

 

In port was a different story. One time we cruised to La Maddalena, Italy. Some of my mates and I, took 4 days of Liberty and drove to a town called, Barry, where by midnight I was arrested for playing Pokymon with the Mayors daughter. Striped, thrown in a cell, and fire hose and electric cattle prod fitness program applied, I thought it was over. I had visions of winding up like the Americans in the “Midnight Express”. I was grateful when someone from the U.S. Embassy demanded my release the next morning, drove me back to the ship, and explained to the Captain why we were under orders to leave port, two weeks early.

 

But that was after, being sent to the British Nuclear Submarine, H.M.S. Spartan, as a part of the Navy Exchange Sailor program. Traded with an Officer on that ship to take his duty for 6 months. No one can drink or party, like the people of South Hampton. I still remember the feeling I had the first time I walked into the Officers Wardroom on that sub, two kegs of tapped ale mounted securely in the wall (officers can drink at their own pace out at sea!).

All because, I read, Jules Verne’s, 20,000 leagues under the sea, as a kid.

 

After picking up too many Rads, I became ineligible for sea duty, shore command wasn’t for me, and so I resigned. After going back to Civilian life, and working various positions in manufacturing companies, I bought an old molding machine and Bridgeport, milling machine. I rented a corner of some one else building and went into the molding business.

 

After about 8 years, I had my own place, 40 employees, I took on a partner, and had just bought another small molding company. That’s where I met my wife, she was the Q.C. Manager for that company. She spoke perfect English, had become a U.S. Citizen, and holds Bachelors in Engineering, from NYU. I now had 80 employees, 24 molding machines and a 65,000 Sqf facility.

 

There were times it was good- very good, and there were times it was very bad!

Do you know what it's like to have to reach into your own pocket to cover this weeks payroll for $ 36,500. because some of your Fortune 1000 customers are not paying their bills on time?

 

My partner screwed me, while I was on a business trip, down here for our customer.

I got my clock cleaned, I started my walk of life leaving my dad’s house for the Navy, with just the clothes on my back. I always worked hard, never bull-xxxxted anybody, I didn’t step on anybody along the way. By the time the dust settled between my Ex-Partner and my-self, what he didn’t get, my attorney’s did. I lost everything but the house I bought for my parents, which was still in my name, my dads house was taken by Medicaid, for coverage they provided for my mom. I was allowed to keep only 1 primary residence.

 

One of my 1st customers, who watched me go from a 2 man operation, right up till the end, and is now my employer, spent a number of years trying to convince me to work for him down in the D.R. So I found myself with-out a nickel in my pocket, and my wife encouraging me to take this job.

 

So I accepted it, the biggest reason being--.

Right after I left the service, while driving hard though life, my parents became sick. First Dad then Mom. 15 years of running them to Hospitals, Doctors, Monthly prescription bills too the tune of $ 3200. (No B.S. there!). I finally got some insurance on them, also, managed home care 24/7, and I am still taking care of all of their monetary responsibilities and needs. After allot of encouragement from my folks, I told my younger brother, who had been working for me since High School,

quote:

---

after 15 years of taking care of them, It’s your turn to swing the bat, I’m going to the D.R.

---

[TimHollis]

About the company I work for.

 

 

I have 800, employees.

And I have lots, of managers.

 

Most of my managers, have some common traits.

 

All speak & write 2 or more languages.

All have a technical degree.

All are VERY WELL ORGINIZED, to the point that I’m jealous.

All have excellent attendance record's, usually are working 10 hour days.

 

They are all extremely professional, dedicated, hard working, talented people.

 

The one thing I find lacking, is actual hands-on technical capabilities. Everybody is a specialist in one field. And once they have that Degree, it is very tough to get them working with their hands & brains again, verses their brains & mouth.

 

But I remind my-self, were I going to get some-one who is experienced, all the around way around, in their particular field???

 

I'm not, you have to groom them on your own.

 

Ask for a spread sheet or a MS power point presentation, they will blow you away. Ask, do you think that operator needs a power tool or a fixture too do the job, more efficiently?????

" Let me do an analysis, and I'll get back to you with my findings"

 

Were doing electronics, RF, IR, Microwave, frequency’s, along with PC Boards, that have components placed on them, faster than you can blink you eye.

 

Where can I get experienced, technical people like that??????

I can't, I have to groom them, and our ex-employees usually get hired away by new Foreign start-up companies.

[TimHollis]

Outside of the weekly payroll, we pay almost 800 people weekly, not bi-weekly like most everybody else in the country. The electric bill is our highest expense. We run 7 disciplines of manufacturing under 1 roof.

We have,

 

A Metal shop with 15 Punch Presses 20- 60 Tons OBI, and a CNC Punch Press, 4 Guillotines, for cutting to size, 4 Brake presses for small runs. Also in there is 8 industrial Spot Welders, busy all day long.

 

Then there is a Powder Coating line with Wash Down and Drying Ovens all on a continuous conveyer.

 

We have a Printing Dept, that cuts and prints every thing from Packing boxes, Merchandise boxes, Instructions, every single piece of cardboard and paper we use.

 

The PCB Department, 10 lines of CNC Circuit board, component placement machines (Chip-Shooters), that to feed Wave solder’s.

 

A Microwave & RF assembly dept, for wireless communication devices.

 

A Molding Dept, 12 Injection molding machines, what doesn’t go in metal, goes in plastic.

 

A huge Assembly Dept, where all of the stuff is made into final finished goods.

 

This is all supported by a central Engineering and QC Departments.

 

A Maintenance Dept, to support the auxiliaries and each department.

 

Four 50Hp Air compressor’s, Two 50Hp Vacuum generators, and Four 3000Kw Standby Generators.

 

I have not seen such a variety of Engineering Disciplines, under 1 roof, anywhere else in the DR, yet. I’m still looking.

 

When the folks back home start getting excited about things like the electric bill, I remind them of what the cost would be back home, then go get a discount for payment in full.

It isn’t the size of the bill that excites them, it’s the rate of increase and frequency that has them on the phone.

 

In the last year, or monthly electric bill has gone from $ 50,000. U.S.

To $ 100,000. U.S. dollars @ Month.

[TimHollis]

quote:

---

Reposted old post, some body once said “ NICE VERBAGE.

---

Absolutely!!!!! I couldn't agree more! But it's not just China, it's the whole dam World, Mexico-India-The Banana Republics, the Caribbean’s, and so-on & so-on.

 

NO WORKERS COMP, OSHA, EPA, HAZMAT,UN-EMPLOYMENT INSURANCE, LIABILITY INSURANCE, FAMILY MEDICAL LEAVE ACT.

And everything else that can put a guy out of business. Like Law-suits for age/race/sex discrimination.

 

Who let this happen? MY GOVERNMENT!!!!!

20 years ago, the largest job market in NY was manufacturing, today it's one of the smallest, under 400,000 people employed in this field for the year 2000.

 

I am in the Dominican Republic working for an American Fortune 500 company. In an American Free Trade Zone. The people I pass on my way to work......

Cutler Hammer, AVON, Allen Bradley, G.E. power equipment, Johnson & Johnson, TYCO INDUSTRIES.

And many others, in this park established by the AMERICAN CHAMBER OF COMMERCE, yep my tax dollars were hard at work all those years.

 

Most of these companies have 500 to 800 employees, earning about $150. @ Month for a machine operator, operating machines like chip shooters, for manufacture of PC-boards for INTEL, and Wave Solder machines, assembly people earn a little less.

 

And while the economy has collapsed here in the last 2 years, and their version of the Federal Reserve( BANCO CENTRAL) is down to 75 million, in U.S. dollars, guess who came to the rescue with a loan for 1.25 Billion dollars??? WITH NO HOPE OF EVER SEEING IT BACK! George Bush & the IMF. Again there are soooo busy with those U.S.tax dollars, they can just add it onto the 87 billion they are taking out of future taxes for rebuilding Iraq.

 

As I work here, and my weekly paycheck is direct deposited from HQ in NY, to my NY bank account. I still pay S.S. and Medicare, but $0 on the State & Federal, because I am working outside the U.S. 320 days a year. The only thing that gets me through the day is, Just 2 years, 3months, till I go home, debt free, no mortgage, and enough CASH saved to retire!

 

Will I? No. At 40 with 3 kids still growing, I will still work, but not because I HAVE too.

 

My day-to-day life here, was all set up by my and your, U.S. Tax dollars.

 

I don't like it, but what’s a guy to do??

 

Thanks for letting me vent

Tim H.

***************************

***************************

***************************

 

 

I know that was long, but it gets shorter, faster and dirtier from here on in.

 

Now you got a background, Next up….

Local economics.

Politics and Policies.

American Free Trade Zones.

How the U.S. Chamber of Chamber of Commerce, put the whole thing together.

 

 

While I'm doing up the next post, let me here your thoughts so far, also start, putting you question up if you have any.

 

Thanks

Tim H.

 

[ 11-13-2003, 01:43 PM: Message edited by: TimHollis ]

[mayday]

quote:

---

let me here your thoughts

---

I'm glued to my seat Tim

very informative reading

[ssibiski]

quote:

---

$0 on the State & Federal, because I am working outside the U.S. 320 days a year.

---

No federal tax if you are working outside the U.S. 320 days a year? Is this because you both work and live outside of the U.S.? Or just work?

 

I agree with Mayday, i'm glued to my seat also.

 

Steve S.

[Jack Mitchell]

“George Bush & the IMF. Again they are so busy with those U.S.tax dollars”

So why continue to invest in another country? What is the logic behind such policy?

Granted, though I am not big a fan of the Bush administration, I still believe that very intelligent people establish foreign investment/policy for some kind of a payback whether it is an immediate or a long term goal. In other words – Where’s the beef? To coin that famous Wendy’s hamburger commercial.

 

I appreciate your effort here Tim, especially your prelude background – this gives a sense of rational, albeit a little bitter from my point of view. (This observation is a personal one and in no way meant as disrespectful).

 

Assuming that the Dominican’s primary income is tourism – this might be an arguable point from your perspective that perhaps it is really manufacturing or really something else.

 

 

Regards, Jack

[TimHollis]

COPY & PASTED FROM MY POST, moving to the DR.

On the web site, I run here in the DR, for ex-pats.

 

 

Since I mentioned it before, I have received allot of request's about this. Below is a portion of the IRS 593, (2555-EZ)exemption. At the bottom is a link for the full publication. As always, consult a professional for your tax advice, I did this, just out of courtesy.

 

quote:

---

A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

 

Amount excludable. If your tax home is in a foreign country and you qualify under either the bona fide residence test or physical presence test for the entire tax year, you can exclude your foreign income earned during the year up to the maximum amount shown in the schedule below.

Year: Maximum Exclusion

1997: $70,000

1998: $72,000

1999: $74,000

2000: $76,000

2001: $78,000

2002 and after: $80,000

 

Beginning in 2008, the $80,000 amount will be adjusted for inflation.

---

 

Full Text

Scroll down to Publication 593

 

http://www.irs.gov/formspubs/lists/0,,id=101466,00.html

 

I still file my State & Federal Taxes every year, but the 1st $ 80,000. comes right off the top. Then I start getting taxed like I was living in NY.

 

When I run out of deductions, (ie: home owner, kids, travel for work.), and I see, I am starting to pay too much, I shift the balance of my pay to this side.

I’m allowed the first $ 20,000. U.S $$$ tax free in the DR, before I start paying tax here.

 

 

I have Dual, Citizenship.

But as bad as the Taxes were back home.

It's still a bargain compared to paying DR Taxes on my full income here.

 

I have my income split, 80% U.S. & 20% D.R.

 

 

Tim H.

 

Stolen from some-one on this board!!!

I'm a man who HATES, paying for Government Programs, supporting Drug Addicts Squirting out baby's

 

[ 11-13-2003, 02:14 PM: Message edited by: TimHollis ]

[Jack Mitchell]

Granted that I might appear uneducated or foolish with this question/observation, I’ll give it a shot anyways.

 

Free trade agreements were established to nurture or perhaps grow another countries economy and to encourage open trading until such time that the country could be self sufficient. – I might be way out there with this statement but the reasoning seems sound enough to me.

 

Hey, I’m no expert about this topic but I am trying to understand the reasons for developing this trade.

 

Regards, Jack

[ssibiski]

Thanks for the info Tim, I was pretty sure that is how the tax exemption worked. Just was a little confussed.

 

quote:

---

Free trade agreements were established to nurture or perhaps grow another countries economy and to encourage open trading until such time that the country could be self sufficient.

---

This may be true but the by-product is that companys origanally based in first world countries move their manufacturing to these third world countries, not to help elivate them but to increase there own profits. I might be way off base but the idea of free trade was to help the third world countries compete on a more even playing field. I would like to know how much free trade is helping these countries and how much is just helping companies increase profits?

 

Steve S.

 

[ 11-13-2003, 02:49 PM: Message edited by: ssibiski ]

[TimHollis]

quote:

---

I appreciate your effort here Tim, especially your prelude background – this gives a sense of rational, albeit a little bitter from my point of view. (This observation is a personal one and in no way meant as disrespectful).

---

Not at all Jack, I'm not bitter, life goes on, and I go with the flow. But I have been personaly hammered, by what you are going to see here before this is all done.

 

I always say I have no regrets for anything I've done in the past. But knowing what I know now, about all of this Free Trade Zone, stuff, I can not honestly say, that I would have compeated so hard, when I was running my own shop back home.

 

I had the best training technically, that I could have ever been exposed to, thanks to the Navy.

But I have no formal business training as most people, would have expected me to, in the past.

 

When I started out, I was hungry, very hungry.

The only time I ever wore a suit at work, is when I went to see a customer, or they where coming to see me. I would have to stop sampling a mold, that I had pulled an all nighter, to finish on time, check the parts to the print, get cleaned up, changed and go see them to get my seconed 30%.

 

quote:

---

Free trade agreements were established to nurture or perhaps grow another countries economy and to encourage open trading until such time that the country could be self sufficient. – I might be way out there with this statement but the reasoning seems sound enough to me.

---

Trust me Jack, I'm getting to it.

 

Next up….

Local economics.

Politics and Policies.

American Free Trade Zones.

How the U.S. Chamber of Chamber of Commerce, put the whole thing together.

 

Tim H.

 

[ 11-13-2003, 02:57 PM: Message edited by: TimHollis ]

[mayday]

quote:

---

I might be way off base but the idea of free trade was to help the third world countries compete on a more even playing field

---

I spent a week in Mexico a few years back installing tombstone fixtures we built for a big US company that has manufacturing facilitys there.

I was disgusted at what i seen, there was a soda vending machine on the shop floor. only management used it cause the cost of 1 soda was the same as 1 days wages for the shop workers. I felt bad walking over to it and buying one. people just stared at me yet when those parts come back to the states or any other country we,you,and I pay top dollar for it. Now who reaps the profit?

[Guest CNC Apps Guy 1]

quote:

---

...to increase there own profits.

---

Not to stick up for companies but ANY Publicly Traded company's FIRST reposonsibility is to it's shareholders. So in reality it's not necessarrily "Corporate Greed" it's "Stockholder Greed" that is driving companies into situations like this.

 

Nice topic Tim.

[ScottyB]

Thanks for the education, Tim.

 

Like many others, I'm here, with my eyes glued to the screen.

 

After your D.R. days are over, maybe you could write novels. You've got us all at the edge of our seat.

 

ScottyB watchin' and waitin'