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Practice Areas

FTZ in Virginia Seeks to Expand, New Production Authority Sought in Arizona

Wednesday, April 24, 2013
By Shawn McCausland
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from the Virginia Port Authority, grantee of FTZ 20, a request for authority to reorganize and expand this zone under the alternative site framework. The proposed service area would be Accomack, Gloucester, Isle of Wight, James City, Mathews, Northampton, Southampton, Sussex, Surry and York counties as well as the cities of Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach and Williamsburg, within and adjacent to the Norfolk-Newport News U.S. Customs and Border Protection port of entry. Comments on this request are due no later than June 24.

The FTZ Board has also received from the City of Phoenix, grantee of FTZ 75, a notification of proposed production activity at the Orbital Sciences Corporation facility in Gilbert, Ariz., which is used for the production of satellites and spacecraft launch vehicles. Production under FTZ procedures could exempt OSC from customs duty payments on the foreign-status materials and components used in export production. However, inputs included in certain textile categories (HTSUS subheadings 5601.21 and 5607.50) would be admitted to the zone under privileged foreign status or domestic (duty-paid) status, thereby precluding inverted tariff benefits on such items. Comments on this proposed activity are due no later than June 3.

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