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FTZ Actions on Upholstered Furniture and Wind Turbine Facilities

Friday, September 23, 2016
Sandler, Travis & Rosenberg Trade Report

Upholstered Furniture. The Foreign-Trade Zone Board has received from Best Chairs Inc. (doing business as Best Home Furnishings) a notification of proposed production activity for its facilities within FTZ 177 in Ferdinand, Cannelton and Paoli, Indiana. Best Home currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics and polyurethane fabrics to produce upholstered furniture and related parts on a restricted basis. Specifically, the company is authorized to produce upholstered furniture (sofas, sectionals, loveseats, chairs and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (2.28 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. This authority was subsequently expanded to include certain polyurethane fabrics.

The current request seeks to extend Best Home’s existing FTZ authority indefinitely (with no increase in the company’s annual quantitative limit) and add foreign-status leather and non-textile foreign-status components to the scope of authority. The request also seeks to clarify certain HTSUS numbers that apply to the company’s existing authority for micro-denier suede upholstery fabric finished with a hot caustic soda solution process. Additional FTZ authority would be limited to the specific foreign-status materials and components and specific finished products described in the submitted notification. Comments on this request are due no later than Nov. 2.

Wind Turbines. The FTZ Board has approved a notification of proposed production activity at the GE Renewables North America LLC facility within subzone 249A in Pensacola, Fla. GE Renewables already had authority to produce wind turbines and related hubs and nacelles within subzone 249A and the current request adds foreign-status components to the scope of authority.

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