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Practice Areas

FTZ Board: Lithium-ion Batteries, Indiana and Ohio Zone Expansions

Friday, June 12, 2015
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from the Jacksonville Port Authority, grantee of FTZ 64, a notification of proposed production activity at the Saft America Inc. facility within site 10 in Jacksonville, Florida. The facility is used for the warehousing, production and distribution of lithium-ion batteries.

Production under FTZ procedures could exempt Saft from customs duty payments on the foreign status components used in export production. On its domestic sales, Saft would be able to choose the duty rate that applies to lithium-ion batteries, lithium-ion batteries for vehicles, lithium-ion battery covers and jelly rolls, battery terminals and battery components (3.4 percent) for the specified foreign status inputs. Customs duties also could possibly be deferred or reduced on foreign status production equipment. Comments on this notification are due no later than July 22.

Separately, the FTZ Board has approved a request from the Indianapolis Airport Authority, grantee of FTZ 72, to expand subzone 72B to include a site in Plainfield, Hendricks County. No additional authorization for production activity has been requested at this time.

Finally, the FTZ Board has received from the Toledo-Lucas County Port Authority, grantee of FTZ 8, a request for authority to reorganize this zone to expand its service area. The zone currently has a service area that includes Sandusky, Henry, Wood, Lucas and Defiance counties in Ohio, and the applicant is now requesting authority to expand the service area to include Erie, Fulton, Ottawa, Paulding and Williams counties, adjacent to the Toledo Customs and Border Protection port of entry. Comments on this request are due no later than Aug. 11.

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