FTZ Board Asked to Expand Zone Benefits in New York, Arizona
Manufacturing Authority Sought for Factory in Proposed FTZ. The Foreign-Trade Zones Board has received an application from the Genesee Gateway Local Development Corporation, the proposed grantee of a new FTZ planned for Genesee County, N.Y., requesting manufacturing authority at the Liberty Pumps Inc. facility in Bergen, N.Y. This facility is used for the manufacturing of submersible and water pumps, including drain pumps, effluent pumps, condensate pumps and sewage pumps.
FTZ procedures could exempt Liberty Pumps from customs duty payments on the foreign components used in export production, and the company anticipates that 12-18% of the facility’s shipments will be exported. On its domestic sales, Liberty Pumps would be able to choose the duty rate that applies to submersible and water pumps (zero) for foreign inputs. FTZ designation would further allow Liberty Pumps to realize logistical benefits through the use of weekly customs entry procedures, possibly obtain deferred or reduced duties on foreign status production equipment, and receive an exemption from duty payments on foreign inputs that become scrap during the production process.
Comments on this application are due no later than March 20.