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2017 California Export Guide



continued from Page 11


anon USA Inc., a gummy

vitamin manufacturer

based company in Van

Nuys, Calif., received the

prestigious “E” Award in

2016 for its commitment to

export expansion.

The“E”Awards committee

was clearly impressed with

the California-based compa-

ny’s business model, which is

nearly 100 percent export-

focused. The company’s abil-

ity to adapt its products for

various export markets was

also particularly notable.

“Zanon’s achievements

have undoubtedly contrib-

uted to national export ex-

pansion efforts that support

the U.S. economy and cre-

ate American jobs,”wrote

United States Secretary of

Commerce Penny Pritzker

in a letter to the company

announcing its selection as

an award recipient.

Prior to merging with

Zanon, Vitamec Inc. only

exported to a few inter-

national markets. Today,

the company’s products

can be found in more

than 30 countries across

the globe. The company’s

founder, Viken Momdjian,

credits its success, in part,

to U.S. export assistance

programs from both state

and federal government


Today, Momdjian says,

“We have developed exper-

tise in all areas related to

the business of exporting,

including document prepa-

ration, product registration,

translation, local market

research and brand man-

agement. Zanon also has

developed a worldwide

network of international

distributors, agents and


Zanon USA: Making theWorld

Healthier, One Gummy at a Time

U.S. Secretary of Commerce Penny Pritzker presented Jasmeet Singh

(center) and Babken Atoyan of Zanon USA the 2016 “E” Award for

exporting during a program in Washington D.C.


Estimated Weekly Entry & Merchandise Processing Fee (MPF)

The Customs broker collects fees for preparing and filing

each entry with U.S. Customs & Border Protection. Customs

also collects the MPF, which is assessed (with a minimum of $25

and a maximum of $485) against each entry filed. The FTZ pro-

gram allows consolidation from daily or per-container entries

into weekly entries, often resulting in substantial savings.

Labor, Overhead and Profit

In calculating the dutiable value on foreign merchandise

removed from a zone, users are authorized to exclude zone

costs of processing or fabrication, general expenses and profit.

As a result, duties are not owed on labor, overhead and profit

attributed to production in a FTZ.


By federal statute, tangible personal property imported from

outside the U.S. and held in a zone, as well as that produced in

the U.S. and held in a zone for export, are not subject to state

and local ad valorem taxes.


U.S. quota restrictions do not apply to merchandise admitted

to zones, although quotas will apply if and when the merchan-

dise subsequently enters the country.With the permission of

the Foreign Trade Zones Board, goods may be substantially

transformed in a FTZ to a non-quota article that may then be

entered into U.S. Customs and Border Protection territory, free

of quota restrictions. Quota merchandise may be stored in an

FTZ so that when the quota opens, the merchandise also may

be immediately shipped into U.S. Customs and Border Protec-

tion territory.

Zone-to-Zone Transfer

Because the merchandise is transported in-bond, duty may

be deferred until the product is removed from the final zone for

entry into the U.S. Customs and Border Protection territory.

Intangible Benefits

Many companies in FTZs find that their inventory control

systems run more efficiently, which increases their competitive-

ness. FTZ users also find that in meeting their FTZ reporting

responsibilities to the U.S. government, they are eligible to take

advantage of special Customs procedures, such as direct deliv-

ery and weekly entry. These procedures expedite the movement

of cargo, and facilitate just-in-time inventory methodologies.

Companies have found these additional or intangible benefits

to be valuable aspects of the FTZ program.

Foreign Trade Zone 244 is administered by the March

Joint Powers Authority in which, the City of MorenoValley

is a member organization. For more information about

the MorenoValley Foreign Trade Zone 244, please visit

Mike Lee is the Economic Development Director for the City

of MorenoValley.