The US Department of Commerce's Foreign-Trade Zones Board has approved the International Gem Tower, located in the heart of New York's Diamond District, as a Foreign Trade Zone (FTZ).

The designation means that the tower's tenant, would be able to import foreign merchandise without customs entry or the payment of US duties, pending their sale.

"We are developing a world class industry center for the diamond, gem and jewelry trade and approval of the FTZ status is another key milestone in our development schedule," Extell's Senior Vice President Raizy Haas, said

"In 2012, New York will finally have a modern industry building to house the trade. And in addition to the beautiful design and technical innovation, we are focused on providing the services and amenities that drive value for our buyers."