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Expanded FTZ Production Authority Sought for Pump Factory

Tuesday, March 31, 2015
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from Xylem Water Systems USA LLC, operator of subzone 37D, a notification of proposed production activity at the Xylem facilities in Auburn, N.Y. Xylem already has authority to produce centrifugal and submersible pumps and related controllers at this facility, and the current request would add a finished product (pump demonstration cutaways) and certain foreign-status materials and components to the scope of authority.

Production under FTZ procedures could exempt Xylem from customs duty payments on the foreign-status components used in export production. On its domestic sales, Xylem would be able to choose the duty rates that apply to centrifugal and submersible pumps (zero), pump demonstration cutaways (zero) and controllers (1.5 percent) for the foreign-status components and materials. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

Comments on this proposal are due no later than May 11.

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