From the desk of Hema Dey, CEO of Iffel International Inc.
For those unaware, the Riverside County has been appointed and approved by the Federal government as a Free Trade Zone county (FTZ). Much like San Diego’s FTZ, the program in Riverside offers members an excellent cost effective solution. According to Richard Dozzier, who reports directly to Trade Commissioner Tom Freeman, the FTZ in the Riverside County offers tax incentives for imports. He further stated, “if you do have a warehouse in the designated FTZ zone within the Riverside County, you do not pay tariffs on inbound shipments and, components are received tax free until it is sold”. Goods which are sold domestically incur import taxation based on the harmonized tariff code and are applied upon entering the country. If however, the component is built in a final assembly (which often is the case) and, to be sold in the USA, the tariff code will most likely change and lower the tax bracket. While there are no taxes to be paid in the USA if the goods are shipped overseas, tariffs may be incurred in the destination country.
Domestic and international business members of the Riverside County Free Trade Zone (FTZ) can enjoy a range of economical benefits from this program. Given the nature of these “Zones”, considered outside the U.S. borders, goods can be handled, manufactured and reconfigured for re-exportation without the interference of government authorities. Thus, businesses can save time and hassle. Further, companies can save money through the deferral or elimination of customs duties, relief from inverted tariffs, duty exemption on waste, scrap and yield loss and, weekly entry savings. While the Riverside County Free Trade Zone offers a cost and time effective solution, it additionally provides businesses with the added bonus of increased security and insurance; further benefiting members of the FTZ program. The County’s encouragement for overseas investors with EB-5 investor visas, has added to the successful expansion of foreign trade and investments. This has further been made possible due to Riverside County’s convenient location. The major port of Los Angeles and the Los Angeles International Airport (LAX), has allowed goods to be quickly and easily transported to the FTZ for Storage, manufacturing or processing purposes. Without the interference of government authorities, companies can save time and, once the merchandise is ready for importing to the United States, only then will customs duties be apply.
Iffel International is a partner and sponsor of the Office of Foreign Trade, Riverside County. Whilst our core business focuses on online marketing strategies (i.e. building of websites, SEO and Social Media) our plight to help US exporters and importers establish efficient international trade is also among our expertise. In today’s world of online marketing, it is essential for companies to invest and take advantage of the benefits. US exporters need us in order to sell on the Internet, not only in the USA but overseas as well. The power of selling on the Internet is endless.
For more information regarding the FTZ program or how you can get selling on the Internet, contact Iffel International at email@example.com
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