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FTZ Board Approves Expansion of Production at Furniture Facilities

Thursday, October 20, 2016
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has authorized an expansion of production authority at the facilities of Bauhaus Furniture Group LLC, H.M. Richards Company Inc., Lane Home Furniture, and Morgan Fabrics Corporation within FTZ 158 in the Tupelo, Miss., area. These companies already had authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture (chairs, seats, sofas, sleep sofas, and sectionals) and related parts (upholstery cover sets) on a restricted basis, which only provided FTZ savings on a limited quantity of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. The FTZ Board has now added certain polyurethane-type fabrics to the scope of authority. All other foreign, unauthorized upholstery fabrics used in the companies’ production activities will continue to be admitted to the zone in domestic (duty paid) status.

Similarly, the FTZ Board has authorized an expansion of production authority at the Southern Motion Inc. facilities in Pontotoc and Baldwyn, Miss. SMI already had authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture (chairs, seats, sofas, sleep sofas, and sectionals) and related parts (upholstery cover sets) for a five-year period, with a scope of authority that only provided FTZ savings on a limited quantity of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. The FTZ Board has now added new foreign-status components and certain polyurethane-type fabrics to the scope of authority.

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