Supervisors OK Application To Expand Coachella Valley Trade

Riverside County supervisors signed off today on a request for federal regulators to expand the boundaries of a tax-advantaged foreign trade zone around Palm Springs International Airport, and approved the establishment of a manufacturing association to promote county businesses.

“We’re trying to bring economic development forth to create jobs,” said Supervisor Marion Ashley. “That’s what this is all about.”

Ashley and Supervisor John Benoit received unanimous board backing to direct the county Office of Foreign Trade to undertake the process of applying to the Obama administration for an expansion of Foreign Trade Zone 236, which is exclusive to Palm Springs airport.

The supervisors are seeking to stretch the zone’s boundaries west to Banning and east across the balance of the Coachella Valley.

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 United States 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 recently expanded from northern San Diego County into the southwestern pocket of Riverside County.

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

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

The board also unanimously approved the establishment of a Riverside County Manufacturers & Exports Association, which will 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 handled by private interests.