The City of Industry's Foreign Trade Zone offers a unique opportunity for companies seeking innovative solutions to the many challenges associated with conducting international trade. A Foreign Trade Zone is an area physically located within the United States, but deemed to be outside the U.S. Customs territory.
Advantages for Businesses in a Foreign Trade Zone
- Most foreign-made parts, components and merchandise may enter a zone without payment of U.S. Customs duties, fees and certain taxes.
- If an imported product that has been admitted to a Foreign Trade Zone is subsequently exported, no U.S. Customs duty is due. If, however, the product is imported into the United States, duties, fees and other taxes (if applicable) are due at the time the merchandise leaves the zone and enters the U.S. Customs territory.
- The importer may choose to pay duty at the rate applicable to either the component parts or on the finished product (which is usually lower and pertains only to the value of the foreign content.)
- Foreign Trade Zones provide importers, exporters, manufacturers and distributors with opportunities to reduce U.S. Customs duties and to defer payment until the product leaves the zone.
- A Foreign Trade Zone also offers benefits such as increased cash flow and reduced actual duty paid on imports and products warehoused, manipulated or manufactured for export.
- Part of the Foreign Trade Zone overlaps with a state-designated Enterprise Zone and a Recycling Market Development Zone that offer other incentives and benefits.
Types of Companies in Zones
Large and small companies alike use Foreign Trade Zones; 70 percent of Foreign Trade Zone users are small businesses. These companies defer, reduce or eliminate U.S. Customs duties, fees and certain taxes. Such companies include importers, manufacturers, distributors, assemblers of products, and exporters of imported merchandise and/or products containing imported merchandise. A company that does not buy or receive imported products from foreign or domestic vendors, and does not plan to do so, will not benefit from the use of a Foreign Trade Zone.
Foreign Trade Zone
The City of Industry has nearly 500 acres designated as a Foreign Trade Zone. These FTZ areas are approximately 40 miles from LAX, 28 miles from Ontario international airport, and 45 miles from the ports of Los Angeles and Long Beach.
For more information on the City of Industry's Foreign Trade Zone, contact Scott Neal (LCB, LCSBB) @ (657) 217-7459, or email email@example.com. Other sources of information are the web sites of the National Association of Foreign Trade Zones and the California Trade & Commerce Agency.