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Two Greater Des Moines companies have received approval from the U.S. Department of Commerce to operate foreign trade zone subzones at their businesses. However, one of the companies says it is reevaluating whether using the designation, which it began applying for two years ago, still makes sense.

SACMI USA, which operates a labeling equipment manufacturing plant in Urbandale, and SPAL USA, a distributor of after-market vehicle parts in Ankeny, each recently received the designations, which enable the companies to defer, reduce or even eliminate customs duties on imported parts or products brought into the subzones.

Both companies would operate the subzones under the authority of a general-purpose foreign trade zone the Greater Des Moines Partnership has maintained since 1984.

“By having two Greater Des Moines companies that have gone through (the process), that may encourage others to take a look at it,” said Jay Byers, the Partnership’s senior vice president for governmental relations and public policy. “And with the foreign exchange rate where it is, it may be worthwhile for companies to look at it.” However, each company’s situation is unique, so each business must conduct its own analysis, he added.

Changing business dynamics for SPAL USA might mean the program won’t work for the company after all, said Chief Operating Officer Brent Clark. A division of SPAL Italy, the Ankeny-based division has doubled its revenues during the past five years to about $30 million in sales in North America; customers include Deere & Co., Harley-Davidson Motor Co. and Polaris Industries Inc.

Currently, SPAL USA brings in 40-foot containers by rail to Newton, but under foreign trade zone requirements would have to terminate rail in Chicago and truck it from there. “That’s a huge unknown for us that wasn’t planned for when we went through this process,” Clark said, noting the additional freight expense could add up to $50,000 annually.

More financial analysis will be needed in the next few weeks to determine if the benefits will outweigh added costs, he said. “We’re going into some new advanced technology in the future; maybe we’ll want to keep the zone active for the future.”

Luca Berrone, general manager of SACMI USA, could not be reached by phone, but in a release from the Partnership said the subzone will enable his company to manufacture labeling equipment locally rather than importing it from Italy. “This will give us a competitive advantage and allow us to better serve the U.S. market,” he said in the release.

Though the Partnership’s general-purpose foreign trade zone, a public warehouse in Clive, has rarely been used by companies for that purpose, it has enabled Winnebago Industries to establish a subzone that it has used for years to defer duty on parts imported to its Forest City plant. Earlier this year, Winnebago set up a second subzone at its Charles City plant. However, the company announced last month that it plans to shut down that factory by August due to economic conditions.

David Maahs, the Partnership’s executive vice president for economic development, said a fee structure for the subzones has not yet been determined. However, no fees will be charged for the first year of operation, and afterward the annual fee for each subzone will probably be less than $5,000, he said.