California Export Guide 2017

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2017 California Export Guide
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Zanon 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
agencies.
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
consumers.”
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.
CAL I FORN I A SUCCE S S S TORY
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.
Taxes
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.
Quotas
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.