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New FTZ Created, Expanded Authority Sought for Furniture Facility

Wednesday, January 20, 2016
Sandler, Travis & Rosenberg Trade Report

New Pennsylvania FTZ. The Foreign-Trade Zones Board has authorized the establishment of FTZ 295 under the alternative site framework with a service area of Bedford, Blair and Cambria counties in Pennsylvania, adjacent to the Pittsburgh and Harrisburg U.S. Customs and Border Protection ports of entry.

Furniture Facility. The FTZ Board has received from Klaussner Furniture Industries Inc., operator of subzone 230D, a notification of proposed production activity for its facilities in Asheboro and Candor, N.C. KFI currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis. This authority was granted for a five-year period that expires this March and only provides FTZ savings on a limited quantity (5.79 million square yards per year) of foreign origin micro-denier suede upholstery fabric finished with a hot caustic soda solution process. The current request seeks to extend KFI’s existing FTZ authority indefinitely (with no increase in the company’s annual quantitative limit) and to add foreign-status leather and certain polyurethane-type fabrics to the scope of authority. KFI is also requesting authority to admit unauthorized fabrics to subzone 230D in privileged foreign status, which would preclude any change in customs classification through transformation under FTZ procedures. Comments are due by Feb. 29.

California Subzone Expansion. The FTZ Board has received from the City of Victorville, Calif., grantee of FTZ 243, a request on behalf of Black & Decker (U.S.) Inc. in Rialto, Calif., for an additional site within subzone 243A. No authorization for production activity has been requested at this time. Comments are due no later than Feb. 29.

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