A U.S. Foreign-Trade Zone (FTZ) is a designated area that is considered to be outside of U.S. customs territory for the purpose of customs duty payments. Merchandise may enter the zone without the payment of customs duties or excise taxes. Customs duties and excise taxes are due only at the time of transfer from the Foreign Trade Zone for U.S. consumption. Companies can have the option of paying the duty at the rate of the finished product or the rate of the individual parts or components of the product, an option that can reduce or eliminate the duty.

If the final product is exported from the U.S., then no U.S. customs duty or taxes are paid on those items. This allows American companies to remain competitive with their foreign-based competitors. There are two Foreign Trade Sub Zones in Tulare County. The first site includes 251 acres located in the Midstate 99 Distribution Center in Visalia Ca. The second site is U.S. Cold Storage’s 14.5-acre site located in the Tulare Industrial Park. It includes a cold storage building with a floor space of nearly 210,000 square feet.