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FTZ Procedures Approved at Electronics, Vessel Repair Facilities; New P.R. Subzone Sought

Thursday, May 16, 2013
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has recently announced the following actions.

- The Puerto Rico Trade & Export Company, grantee of FTZ 61, has requested special-purpose subzone status for the Parapiezas Corporation facility in San Juan, P.R. No authorization for production activity has been requested at this time. Comments on this application are due no later than June 25.

- Production activity under zone procedures has been authorized at the Panasonic Corporation of North America facility in Aurora, Ill., which is used for the kitting of consumer electronics parts into retail packages.

- Production activity under zone procedures has been authorized at the Signal International Texas GP LLC facility in Orange, Texas, which is used for the construction and repair of oceangoing vessels. However, any foreign steel mill product admitted to the subzone, 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 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. In addition, Signal International will have to advise the Board annually as to significant new contracts, with appropriate information concerning foreign purchases otherwise dutiable, so that the Board may consider whether any foreign dutiable items are being imported for manufacturing in the subzone primarily because of FTZ procedures and whether the Board should consider requiring customs duties to be paid on such items.

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