We are excited to announce the grand opening of Foreign-Trade Zone (FTZ) #202 Site 53 operated by Toolots, Inc. for the Port of Los Angeles, which was approved by the U.S. Department of Commerce and the U.S. Customs & Border Protection for general-purpose zone use. FTZ #202 is a secure, access-restricted, Customs privileged area in Cerritos, California within the Greater Los Angeles Metropolitan area of San Gabriel Valley.
FTZ #202 is a Customs privileged area within 60 miles of the seaport complex of the Ports of Los Angeles-Long Beach, where merchandise may be admitted for storage, manipulation, exhibition, and manufacturing duty-free. Although the FTZ is physically located in Cerritos, California, it is legally considered to be outside the U.S. Customs Territory for import/export purposes.
Serving the nation’s busiest gateway to international trade, FTZ #202 offers manufacturers, importers, exporters, & logistics companies with direct access to the Port of Long Beach, the Port of Los Angeles, the Los Angeles International Airport, as well as the nation’s extensive rail and interstate freeway systems. FTZ #202 Site 53 currently consists of 1 General-Purpose Zone Site within the City of Cerritos comprising 100,000-sqare foot of FTZ Designated Space for General-Purpose Use.
FTZ #202 offers Zone Users the unique opportunity to interact with their merchandise prior to customs review, thus allowing greater control over shipments, minimizing risks and acting as an arena in which companies can conduct international trade. Within the FTZ, Merchandise may be stored, inspected, cleaned, sampled, repaired, tested, repaired, relabeled, repackaged, displayed, processed, mixed, salvaged, destroyed, assembled or otherwise manipulated duty-free! A special permit for manufacturing may be obtained for general-purpose zone users upon approval from the FTZ Board.
FTZs are important to our economic health as they help expedite and encourage foreign commerce. They provide companies with Customs duty savings and logistical benefits that can help encourage them to establish or maintain operations in the U.S. and especially for us here in Southern California.
How can I benefit from Foreign-Trade Zone #202?
- Defer Duty on Imports;
- Reduce Duty on Imports Assembled, Processed, Manufactured &/or “kitted” in a Zone;
- Reduce Merchandise Processing Fees (MPF) on Imports under Weekly Entry procedures;
- Reduce Customs broker fees;
- Defer Harbor Maintenance Fees (HMF) on Imports through the seaport;
- Transportation Time Savings through Direct Delivery procedures;
- Eliminate Duty on Re-Exports;
- Federal Excise Tax Exemptions on U.S. Exports (Luxury Taxes);
- Avoid Quota Restrictions;
- Avoid Fines & Penalties;
- Ease of Paperwork & Quick Turnaround;
- Temporary Removal for Repair or Exhibition of Bonded Goods;
- Avoid the need for Duty Drawback
The FTZ Program was created in 1934 as part of President Franklin D. Roosevelt’s “New Deal” Act designed to stimulate economic development, promote international trade, and create American jobs that would otherwise be lost to foreign competition. The FTZ program is one of the last tools in our economic development toolbox that we can use to create wealth within the community by attracting new industry, diversifying the local economy and providing additional employment opportunities for local residents, and achieving the region’s goals of economic diversification.
Business Benefits Available Within Foreign-Trade Zone 202
- Designated Service Area, which includes all of Orange County and large portions of Los Angeles and San Bernardino Counties
- Businesses can receive FTZ designation in an expedited manner under the ASF structure
- Your organization can benefit from increased cash flow and inventory control
- Many of the top names in fashion and household goods operate warehouses within FTZs as a means to reduce operating costs, improve supply chain velocity and manage security at distribution facilities
- Defer, delay or eliminate payment of some duties, merchandise processing fee, and harbor maintenance fee
As we become more of a global society, local businesses are looking to expand their products and services beyond just our local markets. By working together with the local and federal governments, we have established a FTZ that is sure to attract new business to our region, inspire existing businesses to expand and make it easier for local businesses to import and export products.
Flexible FTZ status will help to secure, retain and attract warehousing, logistics, and distribution operations in the Greater Los Angeles Metropolitan area of Southern California. This also opens the door for other businesses throughout the entire FTZ area, including the San Gabriel Valley, to increase employment opportunities and investment. Activation has already generated interest in the FTZ by other companies in the area. Come visit the FTZ for a visual presentation and tour of the facility.
