Wednesday, June 04, 2003
Aldelano Packaging Corp. enters into Foreign Trade Zone

What Is A Foreign Trade Zone? The Foreign Trade Zone Program was created in 1934 as part of the “New Deal” law designed to stimulate economic development, promote international trade, and create U. S. jobs that would otherwise be lost to foreign competition. The Foreign Trade Zone offers importers and exporters 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.

Aldelano Packaging Corp. is strategically located in Chino, California, the heart of Southern California’s Inland Empire. Aldelano Packaging Corp. offers manufactures, importers, and exporters direct access to the Port of Long Beach, the Port of Los Angeles, and the Ontario International Airport, as well as, the nations extensive rail and interstate freeway systems. Foreign-Trade Zones or Free Zones are secured areas in or near U.S. ports of entry where merchandise may be stored without being subject to normal Customs procedures, duties, local and state inventory taxes or federal-excise taxes. Importers and Exporters can take advantage of this duty free environment while utilizing the zone as a trade arena in which to conduct international business.

Merchandise admitted into a zone can be: repackaged, labeled, exhibited, tested, sampled, fixed assembled, manipulated, manufactured or exported. Aldelano Packaging Corp. can provide all those services and more. How can I benefit from Aldelano’s Foreign Trade Zone?

• Defer Duty on Imports
• Reduce Duty Imports Assembled or Manufactured in a zone
• Eliminate Duty on Re-Exports
• Federal Excise Tax Exemption on U.S. Exports (Luxury Taxes)
• Avoid Quota Restrictions
• Avoid Fines and Penalties
• Ease of Paperwork and Quick Turnaround
• Temporary Removal for Repair or Exhibition of Bonded Goods
• Avoid the need for Duty Drawback “Made in the USA” label Since U.S.

Added value is not subject to duty, a manufacture that adds U.S. contents to the foreign product at a rate of 51% or more may qualify for the “Made in the USA label, thus avoiding duty all together. Competitive Advantage Comparison Foreign Trade Zone vs. Bonded Warehouse Foreign-Trade Zone Formal Customs Entry a bonded warehouse is A FTZ is not considered within U.S. Customs within U.S. territory, so territory, thus, goods must customs entry is filed before goods enter a just prior to removal of warehouse. Goods from the zone and only for goods removed. Customs Bond Required for all warehouse No bond required! entries.

Payment of Duty Merchandise is dutiable at Duties are due only the rate in effect at time of upon entry for U.S. removal. Consumption. State and Local Tax is levied on January 1st Foreign merchandise is Inventory Tax of each year on all merchant- not taxed. Domestic dise. merchandise to be exported is not taxed. Permitted Activity Merchandise may only be Merchandise may be cleaned, repackaged and stored, inspected, sorted under customs repackaged, repaired, supervision. tested, cleaned, sampled displayed, manipulated, mixed, processed, assembled, salvaged, destroyed, or re-export.

Waste and Damaged Duty owed on entire No duty paid on waste, Goods shipment entering damaged or otherwise warehouse. non-usable merchandise that is destroyed in the zone. Domestic Merchandise May not be admitted May be admitted without Customs Permit and co-mingled with foreign merchandise. Storage Period Not exceed 5 years Unlimited.