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FTZ Production Authority Sought for Marine Engine and Components Factory

Friday, March 14, 2014
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received a notification from Mercury Maine, operator of Subzone 41H, of proposed production activity for its facilities located in Fond du Lac, Wisconsin. Mercury Marine already has authority to produce marine inboard, outboard and jet pump engines, stern drives, transom assemblies and related components. The current request would add new finished products and foreign components to the scope of authority.

Production under FTZ procedures could exempt Mercury Marine from customs duty payments on the foreign-status components used in export production. On its domestic sales, Mercury Marine would be able to choose the duty rates during customs entry procedures that apply to catalytic converters, bracket assemblies, hydraulic trim/steering cylinders, recoil starters, parts/subassemblies of hydro jet engines, fuel pumps, power steering pumps, turbochargers, air compressor assemblies, parts of pumps, heat exchanger assemblies, seawater filter assemblies, processors for global positioning systems, transom pumps, engine trim pumps, valve assemblies, throttle body assemblies, shaft assemblies, coupling assemblies, engine-transmission assemblies, propellers, electric motors, starter assemblies, ignition control module assemblies, ignition switch assemblies, control panel assemblies, wiring harnesses, position sensor assemblies and engine calibration module assemblies (duty rate ranges from free to 7.5%) for the foreign status inputs noted below and in the existing scope of authority. Customs duties also could possibly be deferred or reduced on foreign status production equipment.

The components and materials sourced from abroad include sound proofing blankets; rubber hose assemblies; thrust boards; gaskets; heat wraps; fuel lines; timing chains; water tubes; fasteners (washers, pins, retaining rings, bolts, nuts); oil drain tube assemblies; aluminum washers/o-rings/bushings; primer bulbs-fuel; hydraulic pumps; turbochargers; oil coolers; seawater filters; processors for global positioning systems; transom pumps; parts of trim pumps; pressure-reduction/hydraulic valves; electric motors; GPS units; condensors; resistors; control panels; remote controllers; insulated wire; electrical connectors/fittings; and voltage/rudder gauges (duty rate ranges from free to 5.7%).

Comments on this request may be submitted by April 23.

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