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FTZ Board Expands Production at Two Zones, Considers New Puerto Rico Subzone

Monday, June 02, 2014
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has approved the production of intermediate components for consumer electronics for export under zone procedures at the Apple Inc./GT Advanced Technologies Inc. facility in Mesa, Ariz. FTZ activity will be limited to foreign-status white alumina block, forged metal industrial heat-treating equipment, and diamond cutting wire.

The FTZ Board has approved production under zone procedures at the LEEVAC Shipyards LLC facilities in Lake Charles and Jennings, La., which are used for the construction and repair of oceangoing vessels. This approval is subject to the following special conditions: (1) any foreign steel mill product that is admitted to the subzone, including plate, angles, shapes, channels, rolled steel stock, bars, pipes and tubes, not incorporated into merchandise otherwise classified, and that is used in manufacturing will be subject to customs duties in accordance with applicable law unless the FTZ Board determines that the same item is not then being produced by a domestic steel mill; and (2) LEEVAC must annually advise the FTZ Board as to significant new contracts with appropriate information concerning foreign purchases otherwise dutiable so that the Board may consider whether any foreign dutiable items are being imported for manufacturing in the subzone primarily because of FTZ procedures and whether the Board should consider requiring customs duties to be paid on such items.

Tucson Regional Economic Opportunities, grantee of FTZ 174, has submitted a request on behalf of the City of Eloy, Ariz., to amend the city’s pending application to establish a general-purpose FTZ at four sites in Pinal County, Ariz., adjacent to the Phoenix CBP port of entry. TREO is now requesting authority to include these four sites as additional magnet sites of FTZ 174, adjacent to the Tucson CBP port of entry. Comments on this request are due no later than July 2.

The FTZ Board has received from CODEZOL C.D., grantee of FTZ 163, a request for subzone status for the Correa Tire Distributor Inc. facility in Dorado, Puerto Rico. No authorization for production activity has been requested at this time. The proposed subzone would be subject to the existing activation limit of FTZ 163. Comments on this request are due no later than July 14.

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