Supervisors Seek To Expand Coachella Valley Economy

Stretching the boundaries of a tax-advantaged foreign trade zone situated around Palm Springs International Airport will be one of the top items on the Riverside County Board of Supervisors’ agenda on Tuesday.

Supervisors Marion Ashley and John Benoit are seeking board support for an application asking the Obama administration that Foreign Trade Zone 236 be expanded west to Banning and east across the balance of the Coachella Valley.

The trade zone is the oldest of the three located in the county.

Firms with trade zone status are spared paying import duties on products they bring into the country for use in manufacturing. The goods are treated as though they’re still outside the U.S. and not subject to taxes, which are assessed when the finished products go to market.

There are also waivers on inventory and various excise taxes, according to county officials.

The zones are monitored by U.S. Customs & Border Protection inspectors, who ensure firms are complying with regulations on foreign trade.

The other two trade zones are: FTZ 244, along the Interstate 215 corridor; and FTZ 153, which was just recently expanded from northern San Diego County into the southwestern pocket of Riverside County.

According to county Foreign Trade Commissioner Tom Freeman, the county has more than 1,300 manufacturing operations that generate more than $11.5 billion in export activity annually.

Supervisors will consider a $25,000 allocation to cover the costs associated with seeking changes to the airport trade zone.

Also on the board’s agenda Tuesday is a proposal for the establishment of a Riverside County Manufacturers & Exports Association, which would serve to promote small and large manufacturers globally, according to board Chairman Bob Buster.

“RCMEA also seeks to create opportunities for local manufacturing and exporters to network and create opportunities to local suppliers to participate in supplying parts for inclusion in the manufacturing process produced locally in order to add more jobs in our county and region,” Buster said.

According to Freeman, RCMEA start-up expenses will be minimal thanks to Palm Springs law firm Slovak, Baron & Empey, which has offered to handle all the necessary filings to set up the association.

Earlier this year, the board endorsed plans for building a “world trade center” in Riverside to promote the Inland Empire’s commerce. That project is expected to be largely handled by private interests, however.