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FTZ Actions on Upholstery Fabric, Vessel, Industrial Sensor, Apparel Facilities

Friday, June 10, 2016
Sandler, Travis & Rosenberg Trade Report

Upholstery Fabrics. The Foreign-Trade Zones Board has approved a limited expansion of production authority under zone procedures at the Klaussner Furniture Industries Inc. facilities within subzone 230D in Asheboro and Candor, N.C. This approval extends KFI’s 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). This approval is subject to a restriction requiring that foreign status upholstery leather, including hides classified under HTSUS subheadings 4107.11, 4107.92 and 4107.99, be admitted to the subzone in privileged foreign status.

Oceangoing Vessels. The FTZ Board has authorized production under zone procedures at the Thoma-Sea Marine Constructors LLC facilities in Houma, La., which are used for the construction and repair of oceangoing vessels. This approval is subject to the following special conditions: (1) any foreign steel mill products admitted to the zone for this activity, including plate, angles, shapes, channels, rolled steel stock, bars, pipes and tubes, not incorporated into merchandise otherwise classified, and that is used in manufacturing, will be subject to full customs duties in accordance with applicable law unless the FTZ Board determines that the same item is not then being produced by a domestic steel mill; and (2) Thoma-Sea must annually advise the FTZ Board as to significant new contracts with appropriate information concerning foreign purchases otherwise dutiable so that the FTZ Board may consider whether any foreign dutiable items are being imported for manufacturing in the zone primarily because of FTZ procedures and whether the FTZ Board should consider requiring customs duties to be paid on such items.

Industrial Sensors. The Greater Metropolitan Area Foreign Trade Zone Commission, grantee of FTZ 119, has submitted a notification of proposed production activity at the SICK Inc. facility in Savage, Minn. SICK already has authority to produce photo-electronic industrial automation sensors within subzone 119G and the current request would add new finished products (encoders, zone control sensors, proximity sensors, integrated optical readers, data process monitoring/reporting systems) and certain foreign components and materials to the scope of authority. Comments on this notification are due no later than July 20.

Apparel. The Dothan-Houston County Foreign Trade Zone Inc., grantee of FTZ 233, is requesting subzone status for the Next Level Apparel facility in Ashford, Ala. No authorization for production activity has been requested at this time. Comments on this request are due no later than July 20.

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