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FTZ Board Actions on Furniture, Flavor Compound, Capacitor, Other Facilities

Thursday, June 30, 2016
Sandler, Travis & Rosenberg Trade Report

Furniture. The Foreign-Trade Zones Board has received from the Greater Mississippi Foreign-Trade Zone Inc., grantee of FTZ 158, a notification of proposed production activity at the facilities of Bauhaus Furniture Group LLC, H.M. Richards Company Inc., Lane Home Furniture and Morgan Fabrics Corporation within FTZ 158 in the greater Tupelo, Miss., area. These companies currently have authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture (chairs, seats, sofas, sleep sofas and sectionals) and related parts (upholstery cover sets) on a restricted basis, which only provides FTZ savings on a limited quantity of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. The current request seeks to add certain polyurethane-type fabrics to the scope of authority. All other foreign, unauthorized upholstery fabrics used in the companies’ production activities would continue to be admitted to the zone in domestic (duty paid) status. Comments on this notification are due no later than Aug. 9.

Similarly, the FTZ Board has received from the Greater Mississippi Foreign-Trade Zone Inc. a notification of proposed production activity at the Southern Motion Inc. facilities in Pontotoc and Baldwyn, Miss. SMI currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture (chairs, seats, sofas, sleep sofas and sectionals) and related parts (upholstery cover sets) for a five-year period, with a scope of authority that only provided FTZ savings on a limited quantity of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. The current request seeks to add new foreign-status components and certain polyurethane-type fabrics to the scope of authority. Comments on this notification are also due no later than Aug. 9.

Flavor Compounds. The FTZ Board has received from the state of New Jersey’s Department of State, grantee of FTZ 44, a notification of proposed production activity at the Givaudan Flavors Corporation facility in East Hanover, N.J., which is used for the production of flavor compounds. Comments are due no later than Aug. 9. A separate application for subzone designation at this facility was submitted and will be processed separately.

Electrolytic Capacitors. The FTZ Board has approved an expansion of production under zone procedures at the United Chemi-Con Inc. facility within subzone 230A in Lansing, N.C. UCC already had authority to produce aluminum electrolytic capacitors within subzone 230A and the FTZ Board has now approved the addition of new foreign components to the scope of authority.

California Subzone. The City of San Jose, Calif., grantee of FTZ 18, has submitted an application on behalf of Space Systems/Loral LLC to expand subzone 18E to include a new 3.63 acre site in San Jose. No additional production authority is being requested at this time. Comments on this application are due no later than Aug. 9.

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