The March JPA along with the U.S. Air Force pursued the establishment of March Air Field as a joint use airport. The Air Force defines a "joint use airport" as one where the facilities which are owned and operated by the Air Force are made available for use by civil aviation. A joint use agreement between these parties was executed May 7, 1997, along with land leases for over 300 acres as the civilian airport name March Inland Port.

Under the provisions of the Joint Use Agreement, the March Inland Port (MIP) is open for business. The MIP is the civilian facility that is managed and operated by the MIP Airport Authority (MIPAA). The Authority's marketing partner is the March Inland CargoPort Development, LLC (the Lynxs Group). With premier aviation facilities and highly competitive fees, MIP can accommodate even the largest of air cargo planes and operations.

March Inland Port boasts an operational airfield, with a 13,300 lineal foot runway and fully manned control tower. With more than one million square feet of ramp area fully stressed to accommodate aircraft up to 900,000 pounds, the MIP has more than 350 acres of runway accessible property available for development. Fees for aviation operations are the lowest in Southern California. MIP is open for business today. All criteria and regulations have been met.

The March Inland Port Airport Authority (MIPAA) was formed by the March JPA in 1996 for the purpose of creating a new civilian airport. This airport is being created as a joint use facility in cooperation with the U.S. Air Force Reserve Command at March Air Reserve Base in Riverside County, California. MIPAA is responsible for the development and operation of the March Inland Port (MIP), a joint use aviation facility.

When March AFB was announced for realignment in 1993, one of the first actions of the DOD was to offer the formation of a "joint use airport." The Air Force defines a "joint use airport" as one where the facilities which are owned and operated by the Air Force are made available for use by civil aviation. Approximately 600 acres east and west of the main runway are available for "airport related uses" as a result of the alignment of March Air Force Base in 1996.

MIP is a joint use aviation that shares essential aviation facilities with the Air Force Reserves. These facilities include the control towers, taxiways, navaids and runways, as well as maintenance of facilities. At 13,300 feet, Runway 14-32 is one of the longest civilian runways on the west coast,and longest in Southern California. Given the runway data for this facility, all freighter aircraft (including 747-400 and AN 124) can depart fully loaded under most conditions. The facility is ideal to serve commercial air cargo freighters that generally operate heavy loads for long stage lengths. The airfield is in compliance with FAA design standards as detailed in FAA Advisory Circular 150/5300-13 (Change 4 Airport Design) and Federal Aviation Regulations Part 77 Objects Affecting Navigable Airspace.

Joint Use Agreement - On May 7, 1997 a joint use agreement was entered into by the DOD and March Joint Powers Authority (JPA). The JPA is the recognized local reuse agency charged with planning for the economic redevelopment of surplus properties at the base. This joint use agreement permits the establishment and operation of commercial aviation, and the airport was officially then "open for business." Under the agreement, the civilian (JPA) and the military (AFRC) entities share essential aviation facilities such as the control towers and runways, as well as maintenance of facilities, under this joint use arrangement.

Public Benefit Conveyance - The March JPA applied to the Federal Aviation Administration for the airport development property. The public benefit conveyance application was approved. That application included an Airport Layout Plan for the March Inland Port that was also approved by the FAA shortly after the signing of the joint use agreement.

Long Term Lease - The Air Force and the March JPA signed a twenty-five year lease that implements the Record of Decision. That lease has since been converted to a "55-Year Lease in Furtherance of Conveyance."

March AFB Master Reuse Plan and EIS - The Base Reuse Plan designates approximately 350 acres of land for civilian aviation facilities at the southern end of the airfield at March. An additional 200 acres west of the I-215 freeway has limitation based on aviation activities. This acreage is intended to be used for commercial aviation through a military/civilian joint use arrangement. The EIS evaluated the environmental elements of the reuse plan and alternatives in accordance with NEPA.

March Inland Port consists of the following key aviation elements:

• The longest runway in California at 13,300 lineal feet.
• Navigational system has been upgraded from a Category I ILS to a Category II with centerline lighting. This $3.7 million project was fully funded federally and was completed in 2002.
• Index E Fire Fighting Capacity Fire Station.
• # An operational airfield with a fully manned control tower.
• Airspace is non-congested, as no arrival or departure routes are "shared" by other airports within the Southern California region. This also holds true for the NAVAIDs, which utilize the Homeland VOR.
• Airfield is close to all airways.
• Upgrading the fuel system for civilian aviation fuel, including a direct pipeline and fuel farm.
• Land side, MIP contains more than one million (1,000,000) square feet of ramp area that is stressed to accommodate aircraft up to 900,000 pounds. Furthermore, the MIPAA has over 350 acres of runway accessible property.

The setting of March Inland Port is ideal for many reasons:

• Airfield is located in one of the fastest growing regions of the United States.
• MIP is accessible to four major freeways, and is rail capable.
• Access to MIP has been upgraded from Interstate 215, as a High Priority Project through TEA-21. This $8 million ground access project was completed in mid-2000.
• The regional location of March has been planned and developed to assure land use compatibility with the operation of March Airfield.
• # As a joint use facility, operational costs are highly competitive

The March JPA has streamlined the way to do business in California. The March JPA has land use authority, and is responsible for all entitlements, building permits, and clearances. Furthermore, the March JPA formed a California Redevelopment Agency and project area to assist with development of MIP. This means, that all business dealings at MIP are conducted with "one" cohesive legislative group. March Inland Port is open for business today. All criteria and regulations have been satisfied, and March Inland Port Airport Authority is ready to do business.

More than $11 million of federal funds have been provided for MIP, the MIPAA upgraded the navigational system to a Category II with centerline lighting. Ideally located within an area of uncongested freeways, access from Interstate 215 to MIP has been upgraded as a High Priority Project through the federal transportation act (TEA-21). This $9 million ground access project was completed in early 2001.

MIP is adjacent to Instate 215, which links with Interstate 15 approximately 22 miles to the south to serve the San Diego market, and the airport is 3 miles south of Highway 60, which links with Interstate 10 approximately 13 miles to the east. Access to the MIP is via the Oleander Interchange at I-215. The San Jacinto Rail Branchline is adjacent to I-215, and intermodal transportation facilities could be implemented. The signing of a federal transportation bill (TEA-21), $7.2 million was designated for improving access from the Oleander Interchange at I-215 to MIP.

MIPAA has been funded by FAA to improve the Navigational Aids to Category Two (CAT II) standards. That project was designed, engineered, and constructed in late 2000.

After a competitive process, the March JPA selected the Lynxs Group, an air cargo facilities developer from Austin, Texas. The Lynxs Group subsequently formed a California corporation, the March Inland CargoPort Development, LLC, that included local area financial partners. By early 1997, marketing efforts were well underway. The priority of the developer was to solicit interest from commercial air cargo carriers.

The Authority and the March Inland CargoPort, LLC. are actively marketing the airport to airfreight carriers. This priority is based on the projected growth in demand for air cargo movement in Southern California over the next 20 years. This type of air-related use will create jobs, attract private investment, fall within the restrictions of the Joint Use Agreement, and be complementary to the ongoing operations of the Air Force Reserves.

With realignment, the AFRES reduced the annual number of military operations at March ARB to 51,426 until the year 2010. Civilian (air cargo) operations capacity, under the current State Implementation Plan (SIP), is denoted in the table below.

Airspace at MIP is unconstrained due to location of other airports, and orientation of Runway 14/32 with respect to flight tracks and patterns. Furthermore, MIP is in the Hemet Sector of the Southern California TRACON, which can handle 25-30 IFR flights per hour.

Regional air cargo volumes have increased rapidly over the last several years. Compared to past years when air cargo was carried primarily in the belly holds of passenger aircraft, most regional air cargo is now transported by dedicated all- cargo freighters. Cargo carried by freighter is estimated to range from about 60% to 64%, depending on the season. There appears to be a great deal of potential for MIP to become a successful airport and could arguably be placed in the "high potential" category for handling regional cargo volumes.

International air cargo handling capacity in the region is a particular problem. Delays during peak periods are continuing to mount at LAX, mainly because of a shortage of ramp space, on-airport warehouse space and peak-period lift capacity. Even with substantial improvements assumed to be made pursuant to the ongoing LAX Master Plan Study, it is highly doubtful that LAX by itself can handle the tremendous growth in international air cargo volume that is forecast over the next twenty years.

Emerging trends favor the development of cargo airports, including the fact that increasing amounts of cargo are being transported by cargo freighters, and it is now strategically possible to substantially separate cargo operations from passenger operations in order to relieve capacity-constrained passenger airports. Also, many existing air carrier airports lack the space to accommodate the extensive warehousing, manufacturing and intermodal facilities that are associated with state-of- the-art cargo-handling airports. Existing cargo airports in the U.S. are being developed as high-tech manufacturing/ distribution centers with intermodal capabilities, or "inland ports."

Updated forecasts project a quadrupling of total regional cargo volumes over the next 20 years, to 8.89 million tons by 2016, compared to 2.15 million tons handled in 1994. The air cargo handling capacity of the region's airports in 1994 was estimated at 2.96 million tons. Without major new handling capacity added to the southern California region, the region is expected to run out of capacity by the turn of the century.

Based upon an air cargo allocation methodology, 1,245,000 tons of cargo or 20% of the total regional cargo in the year 2016 is projected for March, of which 66% anticipated being international. Additionally, as much as 80% of San Diego's air cargo or about 250 tons is "leaded" to other airports, primarily LAX and Ontario. March is a superior alternative to serving San Diego's spillover cargo needs.

U.S. Air Force training operations use flight track over developing areas located west of the airport. Adjacent cities and County require developers to grant Avigation Easements.

Jump to Avigation Page

On August 21, 2000, the Department of Commerce Foreign Trade Zones Board adopted Board Order No. 1104 - Grant of Authority, Establishment of a Foreign Trade Zone, Riverside County, California Area. This designation is FTZ No. 244, and includes the March Inland Port property, and property on West March designated for business, commerce and industry. The March Inland Port FTZ includes the air cargo airport facility and 2000+ acres of vacant land slated for the development of business and commerce center in Riverside County, at former March Air Force Base.

When merchandise is removed from a FTZ, Customs duties may be eliminated if the goods are then exported from the United States. If the merchandise is formally entered into U.S. commerce, Customs duties and excise taxes are due at the time of transfer from the FTZ.

For merchandise that is manufactured in a FTZ with permission of the FTZs Board, the importer may elect to pay Customs duty at the lower rate of either the finished product or its foreign components. In this manner, use of a FTZ zone can result in the reduction of Customs duty owed by companies that manufacture products in an FTZ.

The other important federal agency involved in the FTZ program is the U.S. Customs Service. As the local representative of the Foreign Trade Zones Board, the Customs Port Director has oversight responsibilities for zones located within his or her area of jurisdiction. These responsibilities include: controlling the dutiable merchandise moving to and from zones, collecting revenue owed to the U.S. government, and ensuring that there is no evasion or violation of U.S. laws and regulations governing imported and exported merchandise.

In instances where a firm wants FTZ status for its own plant or facility, or when the existing GPZ cannot accommodate the firm's proposed activity, the designation of subzone may be granted. There is no legal difference in the types of activity that may be undertaken in GPZs or subzones. Typically, subzones are designated for an individual company's manufacturing operations. Subzones can be located anywhere within a State, as long as a sponsoring grantee of a GPZ exists in the State and the U.S. Customs Service can fulfill its proper oversight functions at the proposed location of the subzone.

The FTZ program encourages U.S.-based operations by removing certain disincentives associated with manufacturing in the United States. The duty on a product manufactured abroad and imported into the U.S. is paid at the rate of the finished product rather than that of the individual parts, materials or components of the product. A U.S.-based company finds itself at a disadvantage vis-à-vis its foreign competitor when it must pay the higher rate on parts, materials or components imported for use in the manufacturing process. The FTZ program corrects this imbalance by treating a product made in a U.S. FTZ, for purposes of tariff assessment, as if it were produced abroad.

Benefits for Business
For U.S.-based companies involved in international trade, the FTZ program provides a means of improving their competitive position vis-à-vis their counterparts abroad. The fundamental benefit offered by the FTZ program to U.S.-based companies is the ability to defer, reduce or even eliminate Customs duties on products admitted to the zone.

Miscellaneous Benefits

Other
Additional benefits, sometimes referred to as intangible benefits, have begun to play a greater role in a company's evaluation of the FTZ program. Many companies in FTZs find that their inventory control systems run more efficiently, increasing their competitiveness. FTZ users also find that in meeting their FTZ reporting responsibilities to the U.S. government, they are eligible to take advantage of special Customs procedures such as direct delivery and weekly entry. These procedures expedite the movement of cargo, thereby supporting just-in-time inventory methodologies.

Activation - Approval by the grantee and U.S. Customs Service Port Director permitting operations to begin which allow the admission and handling of merchandise in zone status.

Admission - The physical arrival of goods into a zone in a specified zone status with the appropriate approvals of the zone grantee and the U.S. Customs Service. The word "admission" is used instead of "entry" to avoid confusion with Customs entry processes under Parts 141-144 of the Customs Regulations.

Alteration - a) A change in the boundaries of an activated zone or subzone; b) Activation of a separate site of an already activated zone or subzone with the same operator at the same port; c) The relocation of an already activated site with the same operator.

Customs Territory - The territory of the U.S. in which the general tariff laws of the U.S. apply. The U.S. Customs territory includes the states, the District of Columbia and Puerto Rico, minus any areas within the boundaries of foreign trade zones.

Deactivation - Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator. (Discontinuance of the activated status of only part of a zone is an alteration.)

Direct Delivery - A procedure for delivery of merchandise to a zone without prior application and approval on Customs Form 214; designed for low-risk, repetitive shipments whose ordering and timing are under the control of the operator. Approval to utilize direct delivery must be obtained from the Port Director.

Domestic Status (D) - Status of zone merchandise grown, produced or manufactured in the U.S. on which all internal revenue taxes have been paid, or the status of zone merchandise previously imported on which all applicable duties and internal revenue taxes have been paid.

Drawback - Import duties or taxes repaid by the government, in whole or in part, when the imported goods are exported or used in the manufacture of exported goods.

Entry - Notification to Customs of the arrival of imported goods in the Customs territory of the U.S. Merchandise withdrawn from a zone for consumption in the U.S. is entered when it is removed from the zone. Goods brought into a zone are admitted.

Foreign-First (FOFI) - An accounting method based on the assumption that foreign-status merchandise is disposed of first. Permission to use FOFI must be obtained from Customs and is granted on a case-by-case basis.

General-purpose Zone (GPZ) - A GPZ is established for multiple activities by multiple users. Storage, distribution, testing, repackaging and repair are some of the possible activities in a GPZ. Processing or manufacturing in a GPZ requires the permission of the FTZs Board.

Grantee - A corporation to which the privilege of establishing, operating and maintaining a FTZ has been granted by the FTZs Board. Grantee corporations must be either public corporations or private corporations organized for the purpose of establishing a zone project. Examples of public entities that might receive an FTZ grant include: a political subdivision (including a municipality), a public agency, or a corporate municipal instrumentality of one or more states. Qualified private corporations must be chartered for this purpose under a law of the state in which the zone is located.

Harmonized Tariff Schedule of the United States (HTSUS) - Published by the U.S. International Trade Commission, the HTSUS is used in the classification of imported merchandise for rates of duty and statistical purposes.

Inverted Tariff Structure - Where imported parts are dutiable at higher rates than the finished product into which they are incorporated.

Manipulation - As defined in Section 562 of the Tariff Act, processing wherein merchandise is packed, unpacked, repacked, cleaned, sorted, graded or otherwise changed in condition. The precise distinction between manipulation and manufacturing is subject to interpretation and enjoys a long history of case law.

Manufacturing - The U.S. Customs Service determines what constitutes manufacturing on a case-by-case basis, distinguishing it from other operations such as manipulation, processing, production and blending. The FTZ Board has defined it as any process that results in a change in Customs classification of the merchandise, and therefore, requires prior clearance from the Board pursuant to the manufacturing conditions in specific FTZ zone grants.

Merchandise - FTZ merchandise includes goods, wares, and chattels of every description. Not included is prohibited merchandise, building materials and supplies for use in the operation of a zone.

Nonprivileged Foreign Status (NPF) - Status of zone merchandise not previously cleared by Customs which is appraised in the condition of the merchandise at the time it enters the Customs territory upon exiting the zone. NPF status may be changed upon approval from Customs, provided the merchandise is still in the same condition as when admitted to the zone. While in the zone, NPF status merchandise can be manipulated or manufactured into another commercial item with a different tariff classification. NPF status allows zone users to pay duty at the rate of the finished product produced in the zone.

Operator - A corporation, partnership or person that operates a zone or subzone under the terms of an agreement with the grantee. A grantee may act as its own operator.

Operator's Bond - A bond submitted to Customs, on Customs Form 301, to assure compliance with the Customs Regulations as set forth at 19 CFR 13.73.

Port of Entry - A place designated by the U.S. Government at which a Customs officer is assigned with authority to accept entries of merchandise, collect duties, and enforce the various provisions of the Customs laws.

Privileged Foreign Status (PF) - Zone status whereby merchandise is classified and appraised, with duties and taxes determined, at the time the status is elected. Once chosen, PF cannot be changed.

Processing - Any zone activity (other than manufacturing) requiring a change in condition of merchandise which results in a change in the Customs classification of an article or in its eligibility for entry for consumption.

Subzone - A special-purpose zone established as part of a zone project for a limited purpose that cannot be accommodated within an existing GPZ. Subzones must be sponsored by the grantee of a general-purpose zone.

User - A person or company using a zone for storage, handling or processing of merchandise. An operator may authorize a user to maintain its own inventory system and procedures manual. However, the operator remains responsible to Customs for inventory control unless the user posts its own operator's bond.

Weekly Entry Procedures - A Customs procedure that permits selected qualified zones and subzones to file a weekly entry on Customs Form 3461 for the estimated removals of merchandise destined for domestic consumption during the following business week. Once the Port Director has approved the entry, the operator may ship the products all week up to the quantity estimated. Weekly entry may be approved for zone operations of a repetitive nature in order to allow for expedited removal of merchandise from the zone.

Zone Lot - A collection of merchandise maintained under an inventory control method based on specific identification of merchandise admitted into a zone by lot and lot number (ZLN).

Zone Restricted Status (ZR) - Status of zone merchandise transferred to a zone for the sole purpose of exportation or destruction. Zone restricted merchandise cannot be changed or brought into the Customs Territory without the specific permission of the FTZs Board on a case-by-case review.

Zone Status - The status of merchandise admitted to a zone, i.e. domestic (D), non-privileged foreign (NPF), privileged foreign (PF), or zone restricted (ZR).

Redevelopment efforts at March Air Reserve Base received a major boost Tuesday when the federal government agreed to establish a 2,480-acre foreign trade zone on the site of the downsized military base, as Foreign Trade Zone No. 244. The federal designation will allow businesses located within the trade zone to avoid or defer paying customs duties on products shipped to the base from overseas. Foreign trade zones are considered prime assets in the race to attract large manufacturing and distribution businesses.

Initially, the zone will be used by Philips Consumer Electronics, which recently moved into a new $7 million warehouse at March. But officials say they are confident that the trade-zone designation will help attract even more companies that do business overseas. "It really heightens our ability to market March," said Riverside Mayor Ron Loveridge, a commissioner with the March Joint Powers Authority, a government agency that guides reuse efforts at the base. "It increases the hand we can play in attracting new businesses."

The foreign trade zone concept, created by Congress in 1934, is designed to help U.S. businesses compete with foreign companies. The trade zones allow manufacturing and warehousing operations to be set up in the United States without being subject to U.S. Customs laws. Companies benefit from this by avoiding tariffs on imported products or delaying such payments until the final product is shipped to a domestic buyer. Products that are sent out of the country pay no tariff at all.

Nationwide, there are now 244 federally-designated foreign trade zones and more than 400 smaller sub-zones. Their primary role is to keep businesses and jobs from fleeing to other countries. "The basic idea is to encourage domestic economic activity that, for tariff or logistical reasons, might otherwise be most cost effectively done overseas," said Greg Jones, an Alabama trade consultant and former president of the National Association of Foreign Trade Zones.

"It's a way to help U.S.-based operations adjust to a changing trade environment," Jones said.

In Southern California, full-scale trade zones are located at the ports of Los Angeles and Long Beach, as well as at Palm Springs International Airport and along the Mexican border in San Diego. Smaller sub-zones are located at Ontario International Airport and San Bernardino International Airport, among other sites. The U.S. Department of Commerce awards foreign trade zone designations, but many of them never get off the ground. In 1998, for instance, only 145 zones were actively importing products from overseas. Locally, the trade zones located in San Bernardino and Palm Springs have yet to attract any businesses capable benefiting from the designation. But officials from both airports say they are optimistic about their prospects.

In 1998, the most recent year that data is available, the nation's 145 active foreign trade zones imported $157 billion worth of goods, most of which were later distributed within the United States. About $17 billion of goods were re-exported to other nations, according to the Commerce Department.

Visit the following website for general FTZ information - http://ia.ita.doc.gov/ftzpage/tic.html