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Temporary Manufacturing Authority Sought for North Dakota Facility

Thursday, January 19, 2012
Sandler, Travis & Rosenberg Trade Report

Temporary Manufacturing Authority Sought for North Dakota Facility. The Foreign-Trade Zones Board has received an application from the Fargo Municipal Airport Authority, grantee of FTZ 267, requesting temporary/interim manufacturing authority at two CNH America LLC facilities in Fargo, N.D. The CNH facilities were approved in 2009 for the manufacture of agricultural tractors and construction wheel loaders. Under T/IM procedures, CNH has requested additional authority to produce certain related subassemblies and parts of tractors, combines and wheel loaders. T/IM authority could be granted for up to two years.

FTZ procedures could exempt CNH from customs duty payments on the foreign components used in export production, and the company anticipates that 30-45% of the facilities’ shipments will be exported. On its domestic sales, CNH would be able to choose the duty rates that apply to the finished subassemblies and parts (zero to 4%) for foreign inputs.

Comments on this application are due no later than Feb. 21.

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