HEBER â€“ The Imperial County Community and Economic Development Department held a free workshop for local businesses to learn about the new benefits of the Foreign Trade Zone (FTZ).Â The workshop took place Monday, October 12, at the Marinoâ€™s Italian Bistro in the city of Heber.
Scott Taylor, attorney and consultant of the Miller Company from Kansas City, gave a presentation about the benefits of doing business in the FTZ, focusing on Imperial County.
â€œThis is the perfect opportunity for those who utilize or will be utilizing the FTZ to learn the procedures and incentives that the FTZ provides,â€ said Taylor.
Currently there are 14 local businesses and two pending sites that are utilizing the Imperial County FTZ. Some of the sites include Gateway of the Americas, Airport Industrial Park in Brawley, Calexico International Airport, Calipatria Industrial Park, Imperial County Airport in El Centro, Portico Industrial Park, and Kloke Tract.
The FTZ was created to “expedite and encourage foreign commerce” in the United States for geographical areas, in or adjacent to Customs Ports of Entry. Merchandise of every description may be held in the Zone without being subject to Customs duties and other ad valorem taxes.
Key benefits of the FTZ include, relief from inverted tariffs, duty exemption on re-exports, duty elimination on waste, scrap, and yield loss, weekly entry savings, and duty deferral.
These types of tariff and tax reliefâ€™s are designed to lower the operation costs and enhance cost-competitiveness for U.S.-based companies engaged in international trade.
â€œIt is extremely important for businesses to obtain the necessary information and meet the requirements and qualification to be a foreign trader and avoid any penalty fees,â€ said Miller.
FTZ stimulates American economic growth and development because they encourage companies to Â expand their operations in the US. FTZ are located in all 50 states and Puerto Rico.
A company must have a facility in the US that imports either parts, materials or components for manufacturing and finish goods or parts for distribution. The finish goods areÂ then exported or sold in the US market.
The Imperial Valley Foreign Trade Zones (IVFTZ)are located within the City of Brawley, the City of Calexico, the City of Calipatria, the City of El Centro, and the unincorporated area of the Imperial County. The Foreign Trade Zone designation was awarded in October 2003 by the State of California.