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FTZ Board Considers Production Activity at Personal Care Product Bottling Facility

Tuesday, November 17, 2015
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from the New River Valley Economic Development Alliance, grantee of FTZ 238, a notification of proposed production activity at the CEI-Roanoke LLC facility in Roanoke, Va., which is used for the bottling of cosmetics and personal care products (skin protection creams/lotions, shampoos and conditioners, hair sprays, deodorant/antiperspirants, after shave lotions, make-ups, exfoliants, skin preparations, cleansers, bath preparations, teeth whiteners and moisturizing creams). Comments on this notification are due no later than Dec. 28. A separate application for subzone designation at the CEI facility has been submitted.

FTZ activity at the CEI facility would be limited to the specific foreign-status materials and components and specific finished products described in the submitted notification and subsequently authorized by the FTZ Board. The components sourced from abroad include plastic bottles/containers/caps/lids/bottle collars/jars/tubes; glass bottles; decorative charms on chains; metal bottle collars/caps/lids; scent sprayers; and scent pumps (duty rates range from zero to 5.3 percent)

Production under FTZ procedures could exempt CEI from customs duty payments on the foreign-status components used in export production. On its domestic sales, CEI would be able to choose the duty rates that apply to bottles of cosmetics and personal care products (duty rates range from zero to 5.8 percent) for the foreign-status components noted above. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

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