Santa Ana : Council Votes to Seek Trade Zone Designation

The City Council Monday voted to apply to the federal government to establish a 65-acre Foreign Trade Zone in Santa Ana that would be the only area in Orange County where firms could import goods duty-free.

The area would actually be a subzone of the City of Long Beach’s Foreign Trade Zone and would require approval of the Long Beach Harbor Commission before going on to the U.S. Customs Service and the Federal Trade Zones Board for final consideration. Santa Ana City Manager Robert C. Bobb said approval could come as early as February or March.

Long Beach had opposed Santa Ana’s original plan to apply for a separate, competing zone, arguing that there should be only one for each major port of entry. Under the subzone agreement, Santa Ana would pay Long Beach an initial $10,000, then $5,000 annually in return for assistance with the Customs Service and the writing of a required annual report to the Foreign Trade Zones Board, and use of the port city’s worldwide marketing program.

Firms located within the zone can profit by importing goods and materials tax-free and then assembling and exporting the finished project, thereby paying less overall duty.

“The Foreign Trade Zone will help establish Santa Ana as the international trade center for Orange County,” said Hank Cunningham, city assistant director of economic development.