FTZ Authority Sought for Appliance Factory in Arizona
The Foreign-Trade Zones Board has received an application from the Greater Maricopa County Foreign Trade Zone Inc., grantee of FTZ 277, requesting manufacturing authority for a Sub-Zero Inc. facility in Goodyear, Ariz., that is used to manufacture refrigerators, freezers and wine storage units for export and the domestic market. Comments on this application are due no later than Jan. 17, 2012.
FTZ procedures could exempt Sub-Zero from customs duty payments on foreign materials and components used in export production, and the company anticipates that some 10% of the plant’s shipments will be exported. On its domestic sales, Sub-Zero would be able to choose the duty rate that applies to refrigerators, freezers and wine storage units (zero) for its foreign inputs. Sub-Zero would be exempt from duty payments on any foreign inputs that become scrap or waste during manufacturing, and customs duties also could possibly be deferred or reduced on foreign status production equipment. FTZ designation would further allow Sub-Zero to realize logistical benefits through the use of weekly customs entry procedures.