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OverviewThe Foreign-Trade Zone (FTZ) program
Federal legislation created the Foreign-Trade Zones Act of 1934 to facilitate international trade and increase the global competitiveness of U.S.-based companies.
FTZ 202 – The Port of Los Angeles Foreign-Trade Zone 202 was established in 1994, comprises approximately 2,775 acres of Port property and General Purpose sites in Los Angeles, Orange County, and San Bernardino Counties totaling more than 4,800 acres. In addition, FTZ 202 comprises Subzones in the Southern California cities of Los Angeles, Vernon, and El Segundo.
On July 5, 2012 the Port was approved for Alternative Site Framework (ASF).
This is an optional approach to designation and management of Zone Sites allowing greater flexibility and responsiveness to serve single-Operator/User locations. The ASF was adopted by the FTZ Board as a matter of practice in December 2008 (74 FR 1170, January 12, 2009; correction 74 FR 3987, January 22, 2009) and modified by the Board in November 2010 (75 FR 71069, November 22, 2010). It allows the Port to approve Zone Sites in the designated Service Area of the Zone. This includes all of Orange County and a large portion of Los Angeles and San Bernardino Counties.
What is an FTZ? FTZs are designated sites within the United States where foreign and domestic merchandise is considered to be outside the U.S. Customs territory. The program is designed to lower the cost of doing business and stimulate economic growth and development in the U.S by allowing companies to defer, reduce or eliminate U.S. Customs duties. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties until the products are transfer from the FTZ sites for U.S. consumption. If merchandise never enters the U.S. commerce or re-export to other countries, then no duties are paid on those items.
Following Activities are Permitted in a Foreign-Trade Zone Assembled
Destroyed
Manipulated
Manufactured
Mixed
Processed
Relabeled
Repackaged
Salvaged
Sampled
Stored
Tested
BenefitsThe FTZ program allows U.S.-based companies to defer, reduce or even eliminate Customs duties on products admitted to the zone. Following are some benefits that FTZ Zone user may be benefitted.
Deferral of Duties Customs duties are paid only when merchandise is shipped into U.S. Customs and Border Protection territory. Inventory held in an FTZ is exempt from duty payment until shipped. This can often provide companies with significant operational cash flow relief.
Inverted Tariff In a FTZ, users are allowed to elect a zone status on merchandise admitted to the zone. Importer may pay the duty rate applicable to either the parts or the finished product, whichever is lower.
Elimination of Duties No duties are paid on merchandise exported from a FTZ, on merchandise which is defective, damaged or obsolete, or on waste or scrap.
Elimination of Drawback The duties paid on exported merchandise may be refunded through a process called drawback. The drawback law has become complex and expensive to administer. Through the use of a FTZ, the need for drawback process and cost may be eliminated.
Quotas U.S. quota restrictions do not apply to merchandise admitted to zones. Most merchandize subject to quota, may be held in FTZ, even if it is subject to U.S. quotas restriction. When the quota opens, the merchandize may be immediately shipped into U.S. Customs and Border Protection territory.
Application Process Application submission to the FTZ Board:
There are four different types of applications that can be made to the Foreign-Trade Zones Board. All applications for foreign-trade zones are submitted to the Foreign-Trade Zones Board through the grantee such as the Port of Los Angeles FTZ 202.
Expansion Application (new Magnet Site)
Minor Boundary Modification (Usage-Driven Site)
Manufacturing/Production Authority
Subzone Application
Details of application procedure are available at FTZ Board web-site at http://www.ia.ita.doc.gov/ftzpage/applications.html
Activation application submission to Customs and Border Protection:
Once the application has been approved by the FTZ Board, the operator must activate the site with U.S. Customs and Border Protection. There will be three areas that CBP will review which are, procedures manual that describing the inventory control and record keeping systems, facility check and back ground checks on company officers and employees who have access to records, and the written concurrence of the grantee.
Agreement with Grantee
FTZ regulations required the operator to execute an agreement with Grantee (Port of Los Angeles) that describes the requirements as FTZ operator. The application must also be submitted to the Board of Harbor commissioners and Los Angeles City Council for approval.
The Port of Los Angeles, also known as America’s Port®, Southern California’s gateway to international commerce, is located in San Pedro Bay, 20 miles south of downtown Los Angeles. The nation’s number one port not only sustains its competitive edge with record-setting cargo operations, but also for its groundbreaking environmental initiatives, progressive security measures, and diverse recreational and educational facilities.
The Port of Los Angeles is a department of the City of Los Angeles and is often referred to as the Los Angeles Harbor Department. The Port is operated and managed under a State Tidelands Trust that grants local municipalities jurisdiction over ports and stipulates that activities must be related to commerce, navigation and fisheries. A five-member Board of Harbor Commissioners is, appointed by the Mayor and confirmed by the Los Angeles City Council to provide direction and create policy for the Port.
As a proprietary and self-supporting department, the Port is not supported by city taxes. Instead, revenue is derived from fees for shipping services such as dockage, wharfage, pilotage, storage, property rentals, royalties, and other Port services. Considered a landlord port, the Port of Los Angeles leases it property to tenants who then, in turn, operate their own facilities.
The Port encompasses 7,500 acres, 43 miles of waterfront and features 27 cargo terminals, including dry and liquid bulk, container, breakbulk, automobile, and warehouse facilities.
For more information about FTZ 202, Contact:
Masashi Morimoto (310) 732-3843 [email protected]
425 S. Palos Verdes Street, P.O. Box 151 San Pedro, California 90733-0151
Tel/TDD: (310) SEA-PORT www.portoflosangeles.org
An Affirmative Action/Equal Opportunity Employer. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities.
E PRINTED ON RECYCLED PAPER 2014-0754
The Port of Los Angeles
Foreign-Trade Zone 202Benefits to Local Community & Business
OverviewThe Foreign-Trade Zone (FTZ) program
Federal legislation created the Foreign-Trade Zones Act of 1934 to facilitate international trade and increase the global competitiveness of U.S.-based companies.
FTZ 202 – The Port of Los Angeles Foreign-Trade Zone 202 was established in 1994, comprises approximately 2,775 acres of Port property and General Purpose sites in Los Angeles, Orange County, and San Bernardino Counties totaling more than 4,800 acres. In addition, FTZ 202 comprises Subzones in the Southern California cities of Los Angeles, Vernon, and El Segundo.
On July 5, 2012 the Port was approved for Alternative Site Framework (ASF).
This is an optional approach to designation and management of Zone Sites allowing greater flexibility and responsiveness to serve single-Operator/User locations. The ASF was adopted by the FTZ Board as a matter of practice in December 2008 (74 FR 1170, January 12, 2009; correction 74 FR 3987, January 22, 2009) and modified by the Board in November 2010 (75 FR 71069, November 22, 2010). It allows the Port to approve Zone Sites in the designated Service Area of the Zone. This includes all of Orange County and a large portion of Los Angeles and San Bernardino Counties.
What is an FTZ? FTZs are designated sites within the United States where foreign and domestic merchandise is considered to be outside the U.S. Customs territory. The program is designed to lower the cost of doing business and stimulate economic growth and development in the U.S by allowing companies to defer, reduce or eliminate U.S. Customs duties. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties until the products are transfer from the FTZ sites for U.S. consumption. If merchandise never enters the U.S. commerce or re-export to other countries, then no duties are paid on those items.
Following Activities are Permitted in a Foreign-Trade Zone Assembled
Destroyed
Manipulated
Manufactured
Mixed
Processed
Relabeled
Repackaged
Salvaged
Sampled
Stored
Tested
BenefitsThe FTZ program allows U.S.-based companies to defer, reduce or even eliminate Customs duties on products admitted to the zone. Following are some benefits that FTZ Zone user may be benefitted.
Deferral of Duties Customs duties are paid only when merchandise is shipped into U.S. Customs and Border Protection territory. Inventory held in an FTZ is exempt from duty payment until shipped. This can often provide companies with significant operational cash flow relief.
Inverted Tariff In a FTZ, users are allowed to elect a zone status on merchandise admitted to the zone. Importer may pay the duty rate applicable to either the parts or the finished product, whichever is lower.
Elimination of Duties No duties are paid on merchandise exported from a FTZ, on merchandise which is defective, damaged or obsolete, or on waste or scrap.
Elimination of Drawback The duties paid on exported merchandise may be refunded through a process called drawback. The drawback law has become complex and expensive to administer. Through the use of a FTZ, the need for drawback process and cost may be eliminated.
Quotas U.S. quota restrictions do not apply to merchandise admitted to zones. Most merchandize subject to quota, may be held in FTZ, even if it is subject to U.S. quotas restriction. When the quota opens, the merchandize may be immediately shipped into U.S. Customs and Border Protection territory.
Application Process Application submission to the FTZ Board:
There are four different types of applications that can be made to the Foreign-Trade Zones Board. All applications for foreign-trade zones are submitted to the Foreign-Trade Zones Board through the grantee such as the Port of Los Angeles FTZ 202.
Expansion Application (new Magnet Site)
Minor Boundary Modification (Usage-Driven Site)
Manufacturing/Production Authority
Subzone Application
Details of application procedure are available at FTZ Board web-site at http://www.ia.ita.doc.gov/ftzpage/applications.html
Activation application submission to Customs and Border Protection:
Once the application has been approved by the FTZ Board, the operator must activate the site with U.S. Customs and Border Protection. There will be three areas that CBP will review which are, procedures manual that describing the inventory control and record keeping systems, facility check and back ground checks on company officers and employees who have access to records, and the written concurrence of the grantee.
Agreement with Grantee
FTZ regulations required the operator to execute an agreement with Grantee (Port of Los Angeles) that describes the requirements as FTZ operator. The application must also be submitted to the Board of Harbor commissioners and Los Angeles City Council for approval.
The Port of Los Angeles, also known as America’s Port®, Southern California’s gateway to international commerce, is located in
San Pedro Bay, 20 miles south of downtown Los Angeles. The nation’s number one port not only sustains its competitive edge with record-setting cargo operations, but also for its groundbreaking environmental initiatives, progressive security measures, and diverse recreational and educational facilities.
The Port of Los Angeles is a department of the City of Los Angeles and is often referred to as the Los Angeles Harbor Department. The Port is operated and managed under a State Tidelands Trust that grants local municipalities jurisdiction over ports and stipulates that activities must be related to commerce, navigation and fisheries. A five-member Board of Harbor Commissioners is, appointed by the Mayor and confirmed by the Los Angeles City Council to provide direction and create policy for the Port.
As a proprietary and self-supporting department, the Port is not supported by city taxes. Instead, revenue is derived from fees for shipping services such as dockage, wharfage, pilotage, storage, property rentals, royalties, and other Port services. Considered a landlord port, the Port of Los Angeles leases it property to tenants who then, in turn, operate their own facilities.
The Port encompasses 7,500 acres, 43 miles of waterfront and features 27 cargo terminals, including dry and liquid bulk, container, breakbulk, automobile, and warehouse facilities.
For more information about FTZ 202, Contact:
Masashi Morimoto (310) 732-3843 [email protected]
425 S. Palos Verdes Street, P.O. Box 151 San Pedro, California 90733-0151
Tel/TDD: (310) SEA-PORT www.portoflosangeles.org
An Affirmative Action/Equal Opportunity Employer. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities.
E PRINTED ON RECYCLED PAPER 2014-0754
The Port of Los Angeles
Foreign-Trade Zone 202Benefits to Local Community & Business
OverviewThe Foreign-Trade Zone (FTZ) program
Federal legislation created the Foreign-Trade Zones Act of 1934 to facilitate international trade and increase the global competitiveness of U.S.-based companies.
FTZ 202 – The Port of Los Angeles Foreign-Trade Zone 202 was established in 1994, comprises approximately 2,775 acres of Port property and General Purpose sites in Los Angeles, Orange County, and San Bernardino Counties totaling more than 4,800 acres. In addition, FTZ 202 comprises Subzones in the Southern California cities of Los Angeles, Vernon, and El Segundo.
On July 5, 2012 the Port was approved for Alternative Site Framework (ASF).
This is an optional approach to designation and management of Zone Sites allowing greater flexibility and responsiveness to serve single-Operator/User locations. The ASF was adopted by the FTZ Board as a matter of practice in December 2008 (74 FR 1170, January 12, 2009; correction 74 FR 3987, January 22, 2009) and modified by the Board in November 2010 (75 FR 71069, November 22, 2010). It allows the Port to approve Zone Sites in the designated Service Area of the Zone. This includes all of Orange County and a large portion of Los Angeles and San Bernardino Counties.
What is an FTZ? FTZs are designated sites within the United States where foreign and domestic merchandise is considered to be outside the U.S. Customs territory. The program is designed to lower the cost of doing business and stimulate economic growth and development in the U.S by allowing companies to defer, reduce or eliminate U.S. Customs duties. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties until the products are transfer from the FTZ sites for U.S. consumption. If merchandise never enters the U.S. commerce or re-export to other countries, then no duties are paid on those items.
Following Activities are Permitted in a Foreign-Trade Zone Assembled
Destroyed
Manipulated
Manufactured
Mixed
Processed
Relabeled
Repackaged
Salvaged
Sampled
Stored
Tested
BenefitsThe FTZ program allows U.S.-based companies to defer, reduce or even eliminate Customs duties on products admitted to the zone. Following are some benefits that FTZ Zone user may be benefitted.
Deferral of Duties Customs duties are paid only when merchandise is shipped into U.S. Customs and Border Protection territory. Inventory held in an FTZ is exempt from duty payment until shipped. This can often provide companies with significant operational cash flow relief.
Inverted Tariff In a FTZ, users are allowed to elect a zone status on merchandise admitted to the zone. Importer may pay the duty rate applicable to either the parts or the finished product, whichever is lower.
Elimination of Duties No duties are paid on merchandise exported from a FTZ, on merchandise which is defective, damaged or obsolete, or on waste or scrap.
Elimination of Drawback The duties paid on exported merchandise may be refunded through a process called drawback. The drawback law has become complex and expensive to administer. Through the use of a FTZ, the need for drawback process and cost may be eliminated.
Quotas U.S. quota restrictions do not apply to merchandise admitted to zones. Most merchandize subject to quota, may be held in FTZ, even if it is subject to U.S. quotas restriction. When the quota opens, the merchandize may be immediately shipped into U.S. Customs and Border Protection territory.
Application Process Application submission to the FTZ Board:
There are four different types of applications that can be made to the Foreign-Trade Zones Board. All applications for foreign-trade zones are submitted to the Foreign-Trade Zones Board through the grantee such as the Port of Los Angeles FTZ 202.
Expansion Application (new Magnet Site)
Minor Boundary Modification (Usage-Driven Site)
Manufacturing/Production Authority
Subzone Application
Details of application procedure are available at FTZ Board web-site at http://www.ia.ita.doc.gov/ftzpage/applications.html
Activation application submission to Customs and Border Protection:
Once the application has been approved by the FTZ Board, the operator must activate the site with U.S. Customs and Border Protection. There will be three areas that CBP will review which are, procedures manual that describing the inventory control and record keeping systems, facility check and back ground checks on company officers and employees who have access to records, and the written concurrence of the grantee.
Agreement with Grantee
FTZ regulations required the operator to execute an agreement with Grantee (Port of Los Angeles) that describes the requirements as FTZ operator. The application must also be submitted to the Board of Harbor commissioners and Los Angeles City Council for approval.
The Port of Los Angeles, also known as America’s Port®, Southern California’s gateway to international commerce, is located in
San Pedro Bay, 20 miles south of downtown Los Angeles. The nation’s number one port not only sustains its competitive edge with record-setting cargo operations, but also for its groundbreaking environmental initiatives, progressive security measures, and diverse recreational and educational facilities.
The Port of Los Angeles is a department of the City of Los Angeles and is often referred to as the Los Angeles Harbor Department. The Port is operated and managed under a State Tidelands Trust that grants local municipalities jurisdiction over ports and stipulates that activities must be related to commerce, navigation and fisheries. A five-member Board of Harbor Commissioners is, appointed by the Mayor and confirmed by the Los Angeles City Council to provide direction and create policy for the Port.
As a proprietary and self-supporting department, the Port is not supported by city taxes. Instead, revenue is derived from fees for shipping services such as dockage, wharfage, pilotage, storage, property rentals, royalties, and other Port services. Considered a landlord port, the Port of Los Angeles leases it property to tenants who then, in turn, operate their own facilities.
The Port encompasses 7,500 acres, 43 miles of waterfront and features 27 cargo terminals, including dry and liquid bulk, container, breakbulk, automobile, and warehouse facilities.
For more information about FTZ 202, Contact:
Masashi Morimoto (310) 732-3843 [email protected]
425 S. Palos Verdes Street, P.O. Box 151 San Pedro, California 90733-0151
Tel/TDD: (310) SEA-PORT www.portoflosangeles.org
An Affirmative Action/Equal Opportunity Employer. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities.
E PRINTED ON RECYCLED PAPER 2014-0754
The Port of Los Angeles
Foreign-Trade Zone 202Benefits to Local Community & Business
Foreign-Trade Zone 202
Site 1A
California Cartage Company LLC. 2401 E. Pacific Coast Highway Wilmington, CA 90744 Melissa Curry P: 310-537-1432 [email protected]
Site 2
Customs Air Warehouse 5540 W. 104th Street Los Angeles, CA 90045 Billy Cathcart Jr. P: 310-241-6702 [email protected]
Site 4C
KW International 18655 S. Bishop Ave. Carson, CA 90746 Dean Dokgo P: 310-354-6944 [email protected]
Site 4D
CEVA Freight LLC 18120 S. Bishop Street Carson, CA 90746 Tina Hollowood P: 310-972-5500 [email protected]
Site 4E
Nippon Express NEC Logistics America Inc. 18615 Ferris Place Rancho Dominguez, CA 90220 Contact: Elizabeth Munoz P: 310-604-6163 [email protected]
Site 5
3 Plus Logistics (Activation Pending) 20250 South Alameda Street Rancho Dominguez, CA 90221
Site 7B
Nippon Express U.S.A. Inc. 970 Francisco Street Torrance, CA 90502 Hiroshi Nakajima P: 310-767-5720 [email protected]
Site 7D
*
Citizen Watch Company of America 1000 West 190th Street Torrance, CA 90502 Marilyn C. Cudaimat P: 310-532-8463 ext. 4293 [email protected]
Site 9
*
PUMA North America 19700 Van Ness Ave. Torrance, CA 90501 Michael Ridway P: 713-725-5977 [email protected]
Site 10B
Fujitrans USA Inc. 1231 E. 230th Street Carson, CA 90745 Lynn Lee P: 310-831-5151 ext. 427 [email protected]
Site 10D
DHE 22411 S. Bonita Street, Carson, CA 90745 Michael Dougan P: 323-526-2222
Site 10E
Custom Air Warehouse 1130 East 230th Street Carson, CA 90745 Bill Cathcart, Jr. P: 310-241-6702 [email protected]
Site 11A
Yusen Logistics, Inc. 2417 E. Carson Street Long Beach, CA 90810 Cameron Smith P: 310-522-1875 [email protected]
Site 12
Schafer Brothers Dist. Center, Inc. 1981 E. 213th Street Carson, CA 90749 Nick J. Bard P: 310-835-7231 [email protected]
Site 15
Ask Marine, Inc. 1020 McFarland Ave. Wilmington, CA 90744 Etsuko Amagasa P: 310-549-5994 [email protected]
Site 19
Young’s Market Company LLC (Activation Pending) 6711 Bickmore Ave. Chino, CA 91708 Dennis J. Harmann [email protected]
Site 20A
*
Kwikset Corporation 11280 B. Riverside Drive, Mira Loma, California 91752 Reyna Rivera P: 949-672-4082 [email protected]
Site 20B
Komar Distribution Services 11850 Riverside Drive Mira Loma, CA 91752 Karen Gibson P: 918-423-3535 ext. 176 [email protected]
Site 20C
*
Quiksilver, Inc. 11310 Cantu Galleano Ranch Rd. Mira Loma, CA 91752 Debbie Carchidi P: 714-889-2815 [email protected]
Site 25
*
LAXFUEL Corporation 9900 Laxfuel Road Los Angeles, CA 90045 Lawrence M. McMahon P: 310-646-1202
Site 27
Howard Hartry, Inc. 220 N. Fries Ave. Wilmington, CA 90744 Michel A. Roldan P: 310-732-4252 [email protected]
Site 28
*
PUMA North America 20903 South Maciel Ave. Long Beach, CA 90810 Michael Ridway P: 713-725-5977 [email protected]
Site 29
NNR Global Logistics USA Inc. 21023 S. Main Street Carson, CA 90745
Site 30
CEVA Freight LLC 19600 S. Western Ave. Torrance, CA 90501 Tina Hollowood P: 310-972-5500 [email protected]
Site 31
CTSI Logistics, Inc. (Activation pending)
1451 Knox Street Torrance, CA 90502
Site 32
Custom AirWarehouse Inc. 12200 Arrow Route, Rancho Cucamonga, CA 91739 Dan Cathcart P: 310-241-6700 [email protected] [email protected]
Site 34
*
Interamerican Motor Corp. 8901 Canoga Ave. Canoga Park, CA 91304 Andy Hicks P: 818-678-1200 [email protected]
Site 35
Evolution Enterprises Holdings 16518 Valley Blvd., La Puente, CA 91744 Sarabjjt Bhasin P: 626-968-1216 [email protected]
Site 36
NOVA Container Freight Station 1710 E. Sepulveda Blvd., Carson CA 990745 Chris Cash P: 310-525-2105 [email protected]
Site 37
National Distribution Centers, LLC (Activation pending) 15710 San Antonio Ave Chino, CA 91708
Site 38
*
Spectrum Brands (Activation pending) 2301 W. San Bernardino Redlands, CA 92374
FTZ 202 USAGE-DRIVEN GENERAL PURPOSE OPERATORS (SITE LOCATIONS)
SUBZONES (SITE LOCATIONS)
Site 4 The Carson Company Todd Burnight P: 949-725-6556 F: 949-725-6550 [email protected] Watson Land Company Mike Bodlovich P: 310-952-6414 F: 310-522-8788 [email protected]
Site 7 Cognac Pacific Gateway LLC c/o Unire Real Estate Group Marc D. Selznick P: 714-990-2100 F: 714-990-2120 [email protected] Prologis Rob Antrobius P: 562-345-9212 F: 562-345-9938 [email protected]
Sites 10 & 11 Watson Land Company Mike Bodlovich P: 310-952-6414 F: 310-522-8788 [email protected]
Site 14 Black Rock Overton Moor Properties Timur Tecimer
P: 310-323-9100 F: 310-608-7997 [email protected]
Site 20 Park Mira Loma West LLC Industrial Development International Nicole Williams P: 949-614-8200 F: 949-743-3940 [email protected]
11850 Riverside LLC Alere Property Group, LLC Daniel L. Webb P: 949-509-5000 F: 909-509-5001 [email protected]
The Realty Associates Fund IX, L.P. John Powell P: 949-852-2030 F: 949-852-2031 [email protected]
STRS OHIO CA Real Estate Investment II LLC 11296 Harrel Street Miraloma, CA Reva Sanchez P: 714-689-1447 [email protected]
Site 22 Redland Business Center McShane Corporation William K. Lu, P.E. P: 949-222-1000 F: 949-222-9001 [email protected]
FTZ 202 MAGNET SITE OWNERS CONTACT INFORMATION
OrangeCounty
For more information about FTZ 202, Contact:
Masashi Morimoto(310) 732-3843 [email protected]
1A15
25
E
F
C
B
27
5A
35
7B31
30
9
10B10D10E
11A1228
36
4C4D294E
7D
2A
* Single user site: not open to the public
Site B
Chevron Products Company 324 W. El Segundo Blvd El Segundo, CA 902 45 Lily Lin P: 310-615-5385 F: 310-615-3705 [email protected]
Site
C
Phillips 66 1660 W Anaheim Street, Wilmington, CA 90744 Gregory J. Broussard P: 310-952-6060 F: 310-952-6014 [email protected]
Site
E
Sony Electronics Inc. 2201 E. Carson Street Carson, CA 90810 Laylan Nguyen P: 310-522-6809 F: 310-522-6709 [email protected]
Site
F
Morgan Fabrics Corp. 4265 Exchange Ave. Vernon, CA 90058
Etiw
anda
Ave
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Eucl
id A
ve.
Edison Ave.
Riverside Dr.
Foothill Blvd.
Arch
ibal
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San Bernardino County
RiversideCounty
MONTCLAIR
CHINO
MIRA LOMA
10
1571
60
19
37
20A
32
20B 20C
Highland Ave. Church Ave.
Baseline St.
Lugonia Ave.
San Bernardino Ave.
5th St.
Calif
orni
a St
.
San Bernardino County
SAN BERNARDINO
REDLANDS
COLTON
10
215
210
22
Devonshire St.
Plummer St.
Roscoe Blvd.
Nordho� St.
Rese
da B
lvd.
De
Soto
Ave
.
Cano
ga A
ve.
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Cany
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Los Angeles County
CANOGAPARK
CHATSWORTH
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RESEDA
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101
118
34
September 2014
38
OverviewThe Foreign-Trade Zone (FTZ) program
Federal legislation created the Foreign-Trade Zones Act of 1934 to facilitate international trade and increase the global competitiveness of U.S.-based companies.
FTZ 202 – The Port of Los Angeles Foreign-Trade Zone 202 was established in 1994, comprises approximately 2,775 acres of Port property and General Purpose sites in Los Angeles, Orange County, and San Bernardino Counties totaling more than 4,800 acres. In addition, FTZ 202 comprises Subzones in the Southern California cities of Los Angeles, Vernon, and El Segundo.
On July 5, 2012 the Port was approved for Alternative Site Framework (ASF).
This is an optional approach to designation and management of Zone Sites allowing greater flexibility and responsiveness to serve single-Operator/User locations. The ASF was adopted by the FTZ Board as a matter of practice in December 2008 (74 FR 1170, January 12, 2009; correction 74 FR 3987, January 22, 2009) and modified by the Board in November 2010 (75 FR 71069, November 22, 2010). It allows the Port to approve Zone Sites in the designated Service Area of the Zone. This includes all of Orange County and a large portion of Los Angeles and San Bernardino Counties.
What is an FTZ? FTZs are designated sites within the United States where foreign and domestic merchandise is considered to be outside the U.S. Customs territory. The program is designed to lower the cost of doing business and stimulate economic growth and development in the U.S by allowing companies to defer, reduce or eliminate U.S. Customs duties. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties until the products are transfer from the FTZ sites for U.S. consumption. If merchandise never enters the U.S. commerce or re-export to other countries, then no duties are paid on those items.
Following Activities are Permitted in a Foreign-Trade Zone Assembled
Destroyed
Manipulated
Manufactured
Mixed
Processed
Relabeled
Repackaged
Salvaged
Sampled
Stored
Tested
BenefitsThe FTZ program allows U.S.-based companies to defer, reduce or even eliminate Customs duties on products admitted to the zone. Following are some benefits that FTZ Zone user may be benefitted.
Deferral of Duties Customs duties are paid only when merchandise is shipped into U.S. Customs and Border Protection territory. Inventory held in an FTZ is exempt from duty payment until shipped. This can often provide companies with significant operational cash flow relief.
Inverted Tariff In a FTZ, users are allowed to elect a zone status on merchandise admitted to the zone. Importer may pay the duty rate applicable to either the parts or the finished product, whichever is lower.
Elimination of Duties No duties are paid on merchandise exported from a FTZ, on merchandise which is defective, damaged or obsolete, or on waste or scrap.
Elimination of Drawback The duties paid on exported merchandise may be refunded through a process called drawback. The drawback law has become complex and expensive to administer. Through the use of a FTZ, the need for drawback process and cost may be eliminated.
Quotas U.S. quota restrictions do not apply to merchandise admitted to zones. Most merchandize subject to quota, may be held in FTZ, even if it is subject to U.S. quotas restriction. When the quota opens, the merchandize may be immediately shipped into U.S. Customs and Border Protection territory.
Application Process Application submission to the FTZ Board:
There are four different types of applications that can be made to the Foreign-Trade Zones Board. All applications for foreign-trade zones are submitted to the Foreign-Trade Zones Board through the grantee such as the Port of Los Angeles FTZ 202.
Expansion Application (new Magnet Site)
Minor Boundary Modification (Usage-Driven Site)
Manufacturing/Production Authority
Subzone Application
Details of application procedure are available at FTZ Board web-site at http://www.ia.ita.doc.gov/ftzpage/applications.html
Activation application submission to Customs and Border Protection:
Once the application has been approved by the FTZ Board, the operator must activate the site with U.S. Customs and Border Protection. There will be three areas that CBP will review which are, procedures manual that describing the inventory control and record keeping systems, facility check and back ground checks on company officers and employees who have access to records, and the written concurrence of the grantee.
Agreement with Grantee
FTZ regulations required the operator to execute an agreement with Grantee (Port of Los Angeles) that describes the requirements as FTZ operator. The application must also be submitted to the Board of Harbor commissioners and Los Angeles City Council for approval.
The Port of Los Angeles, also known as America’s Port®, Southern California’s gateway to international commerce, is located in San Pedro Bay, 20 miles south of downtown Los Angeles. The nation’s number one port not only sustains its competitive edge with record-setting cargo operations, but also for its groundbreaking environmental initiatives, progressive security measures, and diverse recreational and educational facilities.
The Port of Los Angeles is a department of the City of Los Angeles and is often referred to as the Los Angeles Harbor Department. The Port is operated and managed under a State Tidelands Trust that grants local municipalities jurisdiction over ports and stipulates that activities must be related to commerce, navigation and fisheries. A five-member Board of Harbor Commissioners is, appointed by the Mayor and confirmed by the Los Angeles City Council to provide direction and create policy for the Port.
As a proprietary and self-supporting department, the Port is not supported by city taxes. Instead, revenue is derived from fees for shipping services such as dockage, wharfage, pilotage, storage, property rentals, royalties, and other Port services. Considered a landlord port, the Port of Los Angeles leases it property to tenants who then, in turn, operate their own facilities.
The Port encompasses 7,500 acres, 43 miles of waterfront and features 27 cargo terminals, including dry and liquid bulk, container, breakbulk, automobile, and warehouse facilities.
For more information about FTZ 202, Contact:
Masashi Morimoto (310) 732-3843 [email protected]
425 S. Palos Verdes Street, P.O. Box 151 San Pedro, California 90733-0151
Tel/TDD: (310) SEA-PORT www.portoflosangeles.org
An Affirmative Action/Equal Opportunity Employer. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities.
E PRINTED ON RECYCLED PAPER 2014-0754
The Port of Los Angeles
Foreign-Trade Zone 202Benefits to Local Community & Business
