Abbott Labs First in Foreign Trade Zone

Abbott Labs' Temecula plant was the first business to join a newly established Foreign Trade Zone.

"This is great news for Abbott Labs, as they will enjoy significant savings on imports of products from offshore," Riverside County Foreign Trade Commissioner Tom Freeman said Thursday.

Businesses within the zone can import products from overseas without paying the import taxes other businesses must pay.

Chicago-based Abbott Labs' plant on Ynez Road was approved for inclusion in FTZ No. 153 by the federal Foreign Trade Zones Board in Washington, D.C., Freeman said.

Federal regulators authorized the expansion of FTZ No. 153,
stretching its northern boundaries in June from just outside the city of San Diego into southwest Riverside County. The reconfiguration was accomplished with the help of San Diego's mayor and city council, Freeman said.

Riverside County supervisors formally requested a boundary change last August at the urging of Supervisor Jeff Stone, who said an expanded FTZ would "attract businesses that manufacture by reducing red tape for exportation, tariffs and even the cost of raw materials."

The imported 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 two other FTZs in the county -- one at Palm Springs
International Airport and another extending from Perris along the Interstate 215 corridor into Riverside.

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

The county has more than 1,300 manufacturing operations that generate more than $11.5 billion in export activity annually, according to Freeman.

City News Service contributed to this report.