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February 201
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EDA Office of Foreign Trade • Riverside County, California • USA
or fabrication, then sell the products
without paying some fees and taxes
until the sale is completed. Companies
not in an FTZ would have to pay those
fees and taxes when the products or
raw materials first enter the U.S.
“
When you bring a finished good
or a raw material to be used in the
manufacturing process, you have to
pay a custom duty on it,”Daniels said.
“
The FTZ program allows you to bring
that product into what is essentially
an island that is not part of the stream
of commerce, so you don’t pay tariffs
or duties. You only pay the duty as
you sell them or export them.”
FTZs around Riverside County have
expanded greatly in recent years.
FTZ #244 now includes the cities of
Corona, Eastvale, Jurupa, Moreno
Valley, Norco, Perris and Riverside. FTZ
#153
takes in Murrieta and Temecula
and FTZ #236, which now covers the
Palm Springs International Airport,
will include Banning and cities
throughout the Coachella Valley.
“
Tom Freeman has been a champion
of getting multiple zones established
in Riverside County,”Daniels said,
referring to the Commissioner of the
Office of Foreign Trade. “Now, he is
trying to make companies aware of
the benefits of being in an FTZ.”
That countywide FTZ expansion
could mean major savings, both in
time and money for Riverside County
manufacturers. For example, Daniels
said, products headed to an FTZ can
sometimes clear customs in 24 hours,
as opposed to 4-5 days otherwise.
Companies also can save money on
manufacturing processing fees.
“
Whether you have one shipment per
day or five shipments per day, you don’t
pay anything,”Daniels said. “But if you
are not in a FTZ, you could be paying
$495 for each shipment you bring in,
which can add up pretty quickly.”
