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California.Think.Global

2017 California Export Guide

C A L I F O R N I A

951.413.3460

| www.morenovalleybusiness.com |

edteam@moval.org

square

MILES

largest city in

CALIFORNIA

21st

largest city in

Riverside County

2nd

Moreno Valley

Population 2016

207,675

20-mile

radius population

2,302,607

Inland Empire

ONE OF THE FASTEST GROWING REGIONS

IN THE US

Fortune 500

Home to numerous

AND INTERNATIONAL COMPANIES

METROLINK

SERVED

BY

CHARTER & CARGO FLIGHTS

FROM MARCH INLAND PORT AIRPORT

INTERNATIONAL FLIGHTS FROM ONTARIO AIRPORT

CALIFORNIA STATE ROUTE 60 | INTERSTATE 215

TRANSPORTATION

W

hat do international companies such as Skechers

USA, Karma Automotive, Deckers Outdoor, and Fisher

& Paykel have in common? They are all part of the

MorenoValley Foreign Trade Zone 244.

Foreign Trade Zone 244, located at the center of a key global

logistics hub that encompasses MorenoValley, California, offers

importers and exporters incentives and cost savings that help

them increase their profitability and competitiveness. Here are

some of the key benefits of foreign trade zones:

Deferral of Duties

Customs duties are paid only when and if merchandise is

transferred into U.S. Customs and Border Protection territory.

This benefit equates to a cash flow savings that allows compa-

nies to keep critical funds accessible for their operating needs

while the merchandise remains in the zone. There is no time

limit on how long merchandise can remain in a zone.

Reduction of Duties

With the permission of the Foreign Trade Zones (FTZ) Board,

users are allowed to elect a zone status on merchandise

admitted to the zone that determines the duty rate to be

applied to foreign merchandise if it is eventually entered into

U.S. commerce from the FTZ. This process allows users to elect

the lower duty rate of that applicable to either the foreign inputs

or the finished product manufactured in the zone. As a result,

companies receive the lesser rate.

Elimination of Duties

No duties are paid on merchandise exported from an FTZ.

Therefore, duty is eliminated on foreign merchandise admitted

to the zone, but eventually exported from the FTZ. Generally,

this applies to merchandise that is scrapped, wasted, destroyed

or consumed in a zone.

Elimination of Drawback

Eligible duties previously paid on exported merchandise

may be refunded through a process called drawback. The

drawback law has become increasingly complex and expen-

sive to administer. If the need for drawback is eliminated, it

allows these funds to remain in the operating capital of

the company.

continued on Page 24

Benefits of ForeignTrade Zone 244:

Located in the Heart of Southern California

By Mike Lee