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FTZ Board Moves to Expand Production Activity at Cell Phone, Golf Club Plants

Monday, February 02, 2015
Sandler, Travis & Rosenberg Trade Report

Cell Phones. The Foreign-Trade Zones Board has added a number of foreign-status materials and components to the existing scope of authority for the Brightstar Corporation facility within FTZ 32 in Miami, Florida, which is used to produce cell phones and cell phone accessories.

Golf Clubs. The FTZ Board has received from Georgia Foreign-Trade Zone Inc., grantee of FTZ 26, a notification of proposed production activity at the Mizuno USA Inc. facility in Braselton, Ga., which is used for golf club assembly. Production under FTZ procedures could exempt Mizuno from customs duty payments on the foreign-status components used in export production. On its domestic sales, Mizuno would be able to choose the duty rate that applies to golf clubs (4.4 percent) for the following foreign-status inputs: golf club heads, shafts and grips (4.9 percent duty). Customs duties also could possibly be deferred or reduced on foreign-status production equipment. Comments on this notification are due no later than March 16.

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