U. S. Declares Palmdale a Foreign Trade Zone to Stimulate Business : Economy: The idea is to defer or eliminate import duties in an effort to create jobs and attract new industry.

When you think of desert trade centers, forget about Khartoum and think Palmdale.

Federal officials Thursday designated Palmdale as a Foreign Trade Zone, exempting manufacturers there from paying import duties on foreign parts used for products sold abroad.

Local officials are hoping that the decision by the U. S. Department of Commerce will stimulate business and create jobs by luring exporters seeking to save money.

“The Foreign Trade Zone will be an important factor in the continuing program to attract new industry and encourage the expansion of the existing industrial base,” said newly elected Rep. Howard (Buck) McKeon, who represents the area. “Our leading aerospace, agriculture and computer technology industries are sure to benefit from the increased trade with international markets.”

Final approval of the designation is expected within months by the U. S. Customs Service.

Firms in Palmdale’s 1,300-acre Foreign Trade Zone can defer payment of import duties on foreign parts, which average about 4% but can range as high as 40% on such goods as textiles, until the finished products are sold in the United States. They pay no import duty or excise tax if the finished goods are exported.

Palmdale becomes one of more than 600 such zones in the United States. In California, it joins San Diego, Oakland, Sacramento and the Port of Long Beach, said Christopher King, chief inspector of the Customs Service for the ports of Los Angeles and Long Beach.

Palmdale officials first applied for the designation in 1991, hoping to diversify the area’s job base, which has been dominated by aerospace and construction. Both of those industries have been hurt during the recession.

It is not clear whether there are any firms interested in moving to Palmdale to take advantage of the designation, a McKeon aide said.