Foreign Trade Zone Attracts Import Businesses to North Coast

My company was selected for a major rebranding project of the Eureka Redevelopment Agency in Eureka, CA. The scope of the project included designing a new logo and writing and designing new marketing/program materials and their website.

My copywriting skills were utilized to create an informational brochure to promote the Agency’s Foreign Trade Zone targeted at small businesses.

Website Copy for
Eureka Redevelopment Agency:
Foreign Trade Zone

Businesses within a U.S. designated Foreign Trade Zone can avoid customs duties on qualifying imported materials. Benefits ranging from inverted tariffs for manufacturers and duty deferral for high volume importers are also available.

Eureka’s Foreign Trade Zone

Our region is part of an elite class of manufacturing and industrial areas located throughout the United States. Within our boundaries we hold various U.S. designated “Foreign Trade Zones.” These are areas that are physically within the U.S., but considered outside of U.S. Customs jurisdiction.

In many circumstances, businesses located within a Foreign Trade Zone can save money by avoiding payment of customs duties on imported material. The Eureka Redevelopment Agency partners with the Port of Humboldt Bay to create cost-benefit analyses for businesses, to illuminate how they can apply all of the different Foreign Trade Zone benefits available.

To qualify, manufacturers and distribution businesses need to be located in one of the four designated sites in and around Eureka. Boundaries, however, are somewhat flexible and can be modified for specific projects.

Manufacturers enjoy inverted tariffs

The Eureka Redevelopment Agency’s Foreign Trade Zone program helps manufacturers reduce tariff exposures.

For example, if the manufacturer is producing a final product, which, if imported, would be subject to a lower duty rate than the rate(s) currently being paid on the imported components, then the imported component rates can be reduced to the final product rate, upon making entry of the final product from the zone into the U.S. If other components are assessed rates lower than that of the final product, the importer has the option of fixing those rates at their lower levels.

High-volume importers can defer duties payments

Duties payments can be deferred almost up to the time of actual sale. If a distribution facility within a Foreign Trade Zone is importing in large quantities, holding inventory for long periods of time, or is facing high duty rates, that facility can improve its cash-flow, by deferring payment of duties until the time finished goods leave the zone – much closer to the time of actual sale.

Our staff will assist you in navigating the Foreign Trade Zone business processes and application procedures. Contact us today to find out how your business can benefit.

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