A Foreign Trade Zone (FTZ) allows manufacturers and importers to manufacture, assemble, process, store, test, re-label, repack or process imported materials without paying customer duties or government excise taxes and export the final product from the United States with no tax liabilities. Other benefits include:

• Deferral of duties, taxes and conformation to regulations until a product enters into the Commerce of the United States.
• No duties or taxes if the product or components are re-exports outside the United States.
• U.S. quota exemption opportunities.
• Cash flow is preserved when buying and shipping in quantity and use/release goods and components on an as needed basis, often deferring duty payment until the time of distribution.
• Product inspections without prepayment duties.
• Elimination of duties on labor.

Kern County has two Foreign Trade Zones:
California City Foreign Trade Zone - The Palmdale FTZ has recently been expanded to include California City.

Shafter Enterprise Zone - The International Trade and Transportation Center (ITTC) located in Shafter has been designated as a Foreign Trade Zone through the Port of Los Angeles.

Information Compiled by Kern Economic Development Corporation