News
Print PDF

Practice Areas

FTZ Board Considers Production Authority for Louisiana Ship Facility

Thursday, September 01, 2016
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from Gulf Island Shipyards LLC a notification of proposed production activity for its facilities within FTZ 279 in Houma, La., which are used for the repair, maintenance, and fabrication of tugs, barges, dredges, offshore drilling rigs, and other vessels. FTZ activity would be limited to the specific foreign-status materials and components and specific finished products described in the notification and subsequently authorized by the FTZ Board. In addition, production activity under FTZ procedures would be subject to the standard shipyard restriction applicable to foreign-origin steel mill products, which requires that GIS pay all applicable duties on such items.

Production under FTZ procedures could exempt GIS from customs duty payments on the foreign-status components used in export production. On its domestic sales, GIS would be able to choose for specified foreign-status inputs the duty rate (zero) that applies to cargo vessels, passenger vessels, tankers, refrigerated vessels, offshore service vessels, fishing vessels, tugs and pusher crafts, dredgers, offshore drilling or production platforms, floating docks and similar structures, lifeboats and military vessels, and hulls. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

Comments on this notification are due no later than Oct. 11.

To get news like this in your inbox daily, subscribe to the Sandler, Travis & Rosenberg Trade Report.

Customs & International Headlines