If your company imports components, parts, raw materials, packaging, or equipment, a Foreign-Trade Zone may be worth a closer look.
A Foreign-Trade Zone, or FTZ, is a federal customs program that can help qualified companies defer, reduce, or sometimes eliminate duties on imported goods. For manufacturers, this can matter when imported components are used in production, held in inventory, incorporated into finished goods, or later exported.
The most important thing to understand is that FTZ benefits are not automatic. A company does not receive FTZ treatment simply because it is located inside a city or industrial area shown on an FTZ map. The map creates eligibility. The company still has to apply, have its specific facility approved, and be activated by U.S. Customs and Border Protection before it can use FTZ procedures.
That is why FTZs can seem confusing. They are geographically based, but they do not always look like one continuous industrial park. A modern FTZ may include scattered individual sites across a region: one manufacturer here, one warehouse there, and another distribution facility miles away. The zone number simply identifies the federally approved FTZ program and its local administrator, called the grantee.
In the Inland Empire, different areas may connect to different FTZ programs. Western Riverside County, including Corona, is served by FTZ 244 through the March Joint Powers Authority. Portions of San Bernardino County may be served through FTZ 50, administered by the Port of Long Beach, or FTZ 202, administered by the Port of Los Angeles. Ontario, for example, works directly with the Port of Long Beach to help companies evaluate FTZ eligibility and activation.
So who should a manufacturer call first?
Start with your County Economic Development team. In Riverside and San Bernardino counties, either County Economic Development team can help connect manufacturers to the right FTZ program, port authority, city trade office, or local grantee. They can help determine whether your address is in a service area, whether your imports are large enough to justify the process, and whether you should involve an FTZ consultant or customs specialist.
The process is not instant. Companies should expect a formal review, paperwork, site approval, and Customs activation. In some cases, businesses work with a consultant, which may cost several thousand dollars, and the full process can take many months or longer depending on the operation, facility, and compliance requirements.
Is it worth the effort? For many manufacturers, yes. MCIE members have benefited from going through this process, particularly when imported components are a meaningful part of their cost structure. The potential benefits can include delaying duty payments until goods enter U.S. commerce, eliminating duties on goods that are re-exported, reducing duties in certain cases where imported components become finished goods, and avoiding duties on some scrap, waste, or rejected merchandise.
For the right manufacturer, an FTZ is not just a logistics program. It can be a competitiveness tool—helping Inland Empire companies manage tariff exposure, improve cash flow, and keep production in the region.
