Boosting Supply Chain Agility with FTZs 

Micro Commercial Components (MCC), was recently featured in Marketplace.org’s coverage of how Foreign Trade Zones (FTZs) are helping businesses navigate fluctuating tariffs and support local economies. In the segment, Eric Schneider, MCC’s VP of Digital, offered a behind-the-scenes look at the company’s secure FTZ facility in Simi Valley, California, highlighting how MCC’s infrastructure supports both growth and flexibility in a constantly evolving global trade environment. 

“Having this directly at our facility in Southern California, we’re able to have that as a selling point,” Schneider said during the interview. 

MCC’s Foreign Trade Zone has been a game-changer. It’s driven more than 30% revenue growth over the past five years, showing how smart infrastructure investments can deliver real value to our customers and partners.

Eric Schneider

VP of Digital, MCC

Read the full piece from Marketplace here, or listen to the audio segment featuring Schneider’s insights on MCC’s FTZ strategy.

What Is a Foreign Trade Zone (FTZ)? 

A Foreign Trade Zone (FTZ) is a designated area under U.S. Customs and Border Protection (CBP) supervision where imported goods can be stored, processed, or distributed without immediate payment of tariffs. FTZs are designed to promote global trade compliance, economic development, and supply chain optimization. 

For MCC, this means semiconductor components sourced globally can be brought into the FTZ, stored securely, and only incur duties when they enter U.S. commerce or not at all if they are re-exported. 

Key Functions of an FTZ: 

• Tariff deferral until goods enter U.S. markets 
• Tariff exemption for re-exported goods 
• Customs compliance under CBP oversight 
• Inventory control with bonded warehousing

This flexibility is extremely valuable in the semiconductor supply chain, where global sourcing, fast delivery, and cost control are essential. 

MCC’s FTZ is Secure, Strategic, and Scalable 

MCC’s 19,000-square-foot FTZ warehouse in Simi Valley, California is a cornerstone of its supply chain strategy. Activated by CBP in 2020, the facility is designed to meet rigorous customs compliance standards while enabling agile logistics. 

Security & Compliance Features: 

• RFID-secured access 
• Magnetic locking systems 
• 24/7 surveillance 
• Customs-compliant fencing and entry protocols 
• Background screening for all FTZ personnel 

“You have to be a secured employee with a background screening. And there’s security cameras at pretty much every entrance and exit,” Schneider explained. 

This infrastructure enables MCC to manage inventory with precision, maintain compliance, and respond quickly to customer demand across sectors like automotive, industrial, computing, and consumer electronics. 

Why FTZs Matter in the Semiconductor Supply Chain 

Semiconductor distribution involves complex logistics and is highly sensitive to global trade regulations. Foreign Trade Zones (FTZs) provide a strategic framework for managing these challenges by offering cost control, operational flexibility, and regulatory compliance.

MCC’s FTZ facility in Simi Valley, California enables secure, bonded storage of globally sourced components. Duties are deferred until goods enter U.S. commerce or waived entirely if re-exported. This structure supports a more agile and efficient supply chain, especially for customers operating in tariff-sensitive industries.

 FTZ Benefits for Semiconductor Distributors: 

• Tariff management: Avoid or defer duties on imported components 
• Cash flow optimization: Delay duty payments until goods are sold 
• Tariff-free sales: Sell to customers with their own FTZs without incurring duties 
• Inventory agility: Store goods indefinitely without customs penalties 
• Global trade compliance: Operate under CBP supervision with full audit trails 

These capabilities strengthen MCC’s ability to offer competitive pricing, faster delivery, and greater flexibility. This is especially valuable for customers in automotive, computing, industrial, and consumer electronics sectors.

MCC’s Competitive Edge and Customer Impact 

By embedding FTZ operations into its supply chain strategy, MCC has built a resilient and scalable model that delivers measurable value to both the company and its partners. As Eric Schneider, VP of Digital, noted in the Marketplace segment, “The FTZ is not just a logistics solution, it’s a business growth engine.”

Real-World Customer Benefits: 

• Tariff-free procurement for FTZ-enabled manufacturers 
• Reduced lead times through bonded inventory 
• Improved cost control during tariff fluctuations 
• Enhanced compliance for global sourcing strategies 

This strategic positioning has enabled MCC to maintain continuity during trade disruptions, support customer growth, and strengthen long-term relationships across multiple sectors.

FTZs as a Tool for Economic Development 

Beyond MCC, FTZs are being embraced by local governments and ports as tools to attract advanced manufacturing and high-tech industries. From Phoenix to the Port of Hueneme, FTZs are helping regions transition from consumption-based to production-based economies. 

Economic Development Impacts: 

• Job creation in logistics, manufacturing, and compliance 
• Increased investment in infrastructure and technology 
• Higher wages in skilled trade and engineering roles 
• Tax revenue growth from expanded business activity 

MCC’s Supply Chain Resilience: A 25-Year Legacy 

As global supply chain dynamics continue to evolve, MCC remains focused on delivering stability, agility, and long-term value to our customers. Our  Q2 and Q3 2025 supply chain reports reflect this commitment, showcasing how strategic investments, operational diversification, and customer-first planning are helping us navigate complexity and support growth across key markets.

2025 marks a significant milestone for MCC: 25 years of trusted service in the semiconductor industry. This legacy is built on a foundation of reliable product performance, responsive customer support, and a resilient supply chain strategy that adapts to shifting trade policies, material cost pressures, and regional capacity constraints. From our expanded Free Trade Zone operations in California to our new backend facility in Vietnam, every initiative is designed to strengthen continuity, reduce risk, and enhance responsiveness.

Highlights from MCC’s Supply Chain Strategy:

• Multi-region sourcing to reduce geopolitical risk
• Digital logistics platforms for real-time inventory visibility
• FTZ warehouse expansion to support new product lines
• Channel partner support with tariff-free distribution options

These efforts reinforce MCC’s role as a dependable supply chain partner, one that customers can count on to deliver consistent quality, competitive lead times, and proactive support in a dynamic global environment.

Looking Ahead: MCC’s FTZ-Driven Growth Strategy 

As global trade dynamics continue to shift, MCC is committed to scaling its operations with a focus on infrastructure that delivers measurable value. Our Foreign Trade Zone (FTZ) remains central to this strategy, supporting cost-effective, compliant, and customer-focused semiconductor solutions across key markets:

We are actively exploring:

• FTZ expansion to support new product categories 
• Enhanced automation for warehouse operations 
• AI-driven demand forecasting to optimize inventory 
• Strategic partnerships with FTZ-enabled customers and distributor

Whether you're a manufacturer, OEM, authorized distributor, or procurement team, MCC’s FTZ-backed infrastructure is designed to support your success in a complex global market. 

Explore MCC’s full portfolio of semiconductor components, including IGBTs, rectifiers, MOSFETs, and TVS protection devices. 

Partner with MCC to leverage FTZ capabilities for smarter sourcing, faster delivery, and better margins.