NEW BUSINESSES
T ariffs, trade wars and taxes: For the international business community, any one of these can bring uncertainty and make running a business more complex and expensive. Tariff unpredictability also impacts a company’s ability to plan for the future. This is where the Foreign-Trade Zones and City of Industry come in to play. The Foreign-Trade Zone designation in the City offers many benefits to businesses and a unique opportunity for companies seeking a competitive advantage and solutions to the challenges of conducting international trade in times of tariff unpredictability. Foreign-Trade Zones can be part of an effective, proactive strategy to withstand tariff volatility, enhance flexibility, strengthen supply chain resilience, and cut costs in uncertain economic times. “A Foreign-Trade Zone is a major tool to help companies level the playing field and compete internationally,” said Scott Neal, a longtime U.S. Customs broker and consultant, and a Foreign- Trade Zone specialist. “Foreign-Trade Zones also promote expanding U.S. exports and they can be a powerful cash- management tool. Cities like them because they attract more industries, retain U.S. jobs and create new jobs.” Duties vs. Tariffs Duties belong in a broad category of fixed, government- imposed taxes on goods and can be applied to domestic or international goods. Duties are collected by U.S. Customs and Border Protection. They generate revenue, protect trade, and are typically set by international trade treaties. A tariff is a type of duty applied to international trade, usually imports. Tariffs are used to generate revenue, regulate foreign competition, and protect domestic industries. Tariffs are a type of duty, but not all
What is a Foreign-Trade Zone? A Foreign-Trade Zone is a secure, designated area located within the United States, but considered to be outside of U.S. Customs and Border Protection territory. As a result, businesses in one of these zones can reduce or eliminate duties and tariffs on imports and take advantage of other benefits to encourage foreign commerce within the United States, according to the National Association of Foreign-Trade Zones (naftz.org). Foreign-Trade Zones were created by Congress in 1934 as part of the New Deal. They were designed to stimulate economic development, promote international trade, and create domestic jobs that would otherwise be lost to foreign competition. Foreign-Trade Zones are in every state and Puerto Rico and are established within an area near a port of entry to the United States. In Foreign-Trade Zones, goods can be stored, assembled, manipulated, modified, relabeled, repackaged and re-exported, free of U.S. Custom duties. Foreign-Trade Zones are a vital resource for trade in the United States. According to its 2023 Annual Report to Congress, the Foreign-Trade Zones Board said there were 197 active Foreign-Trade Zone programs across the country, employing approximately 550,000 people at about 1,300 operations and businesses, and exporting $149 billion in goods.
New restaurant opening, left, and opening of organic waste processing expansion at Valley Vista Services’ Grand Central Recycling & Transfer Station above.
OCT. 11-12, 2025
INDUSTRY HILLS CHARITY PRO RODEO
From left: David M. Perez, Valley Vista Services, Rosa Garcia, EXPO, Yamini Pathak, City Finance Director, Cory Moss, Mayor, Julie Pedroza, Steve Marcucci, Council Member
Foreign-Trade Zone and City of Industry Any company property located in City of Industry can operate under a Foreign-Trade Zone, either operating under an existing zone, or establishing
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duties are tariffs. Tariffs may be imposed by a government for certain products, or categories of products, at distinct times. Tariffs can change at any time at the whim of the current administration.
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