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Auto Parts Facility Seeks to Expand FTZ Production Authority

Thursday, May 28, 2015
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from the Louisville and Jefferson County Riverport Authority, grantee of FTZ 29, a notification of proposed production activity at the Hitachi Automotive Systems Americas Inc. facilities within subzone 29F in Harrodsburg, Ky. HIAMS-HK already has authority to produce various automotive components within subzone 29F, including electric-hybrid drive systems, mass air sensors, throttle bodies and chambers, starter motors, motor/generator units, alternators, distributors, static converters, inverter modules, rotors/stators, batteries, ignition coils, sensors and modules, fuel injectors, emissions control equipment, valves, pumps, and electronic control units for engines and transmissions. The current request would add a new finished product (automotive battery management systems) and foreign components to the scope of authority.

Production under FTZ procedures could exempt HIAMS-HK from customs duty payments on the foreign status components used in export production. On its domestic sales, HIAMS-HK would be able to choose the duty rate that applies to automotive battery management systems (1.7 percent) for the specified foreign status inputs. Customs duties also could possibly be deferred or reduced on foreign status production equipment.

Comments on this notification are due no later than July 7.

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