FTZ Board Considers Permanent Production Authority at Furniture Facility
The Foreign-Trade Zones Board has received from the Greater Mississippi Foreign-Trade Zone Inc., grantee of FTZ 158, a notification of proposed production activity at the Max Home LLC facilities in Iuka and Fulton, MS. Comments are due no later than May 18.
Max Home previously had authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts on a restricted basis. Board Order 1744 authorized such production for five years, with a scope of authority that only provided FTZ savings on a limited quantity (2.23 million square yards per year) of foreign micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All other foreign upholstery fabrics used in Max Home’s production within subzone 158F were subject to full customs duties.
The current request seeks to renew Max Home’s previously approved FTZ authority indefinitely (with no increase in the annual quantitative limit of 2.23 million square yards) and to add foreign-status leather and certain polyurethane-type fabrics to the scope of authority. Additional FTZ authority would be limited to the specific foreign-status materials and components and specific finished products described in the notification and subsequently authorized by the FTZ Board. Authority to admit foreign-status fabrics to subzone 158F would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process (classified within HTSUS headings 5407, 5512, 5515, 5516, 5801 and 5903), polyurethane fabrics backed with ground leather (HTSUS 5903.20.2500), wet coagulation process 100 percent polyurethane coated fabrics (HTSUS 5903.20.2500) and upholstery leather (HTSUS heading 4107).