Cities Seek to Create Foreign Trade Zone

Lancaster and Palmdale announced Tuesday they plan to ask the federal government to designate the land around Air Force Plant 42 as a foreign trade zone that would have customs and tax incentives to attract new industries.

Officials of the two cities say they have the backing of U.S. Sen. John Seymour of California and the Antelope Valley’s congressional delegation. Palmdale Mayor Pete Knight and Lancaster Councilman George Theophanis said they hope for a decision by early next year.

If approved by the U.S. Department of Commerce, the area surrounding Plant 42 would be designated as an expansion zone to the already existing trade zone at the Port of Long Beach. Businesses that operate within such zones pay reduced customs duties and excise taxes or avoid them altogether.

The Antelope Valley chapter of the Building Industry Assn. has been working with both cities to develop their application. Rick Norris, the chapter’s executive director, said the trade zone would help diversify the region’s jobs base, now dominated by aerospace and building companies.