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Alabama Airbus Plant Seeks FTZ Production Authority

Thursday, September 04, 2014
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from the City of Mobile, grantee of FTZ 82, a notification of proposed production activity at the Airbus Americas Inc. facility in Mobile,  Ala., which is used for the manufacture of commercial passenger aircraft. Comments on this notification are due no later than Oct. 14.

FTZ activity would be limited to the following specific foreign-status materials and components and specific finished products: plastic handles and knobs; plastic washers; hex-head screws; lock washers; steel cotter pins; steel pins; aluminum rivets, pins, nuts and washers; plates, shims and other aircraft parts made of aluminum; metal mountings and brackets; check valves; safety valves; copper and steel thermostat valves; electric motors and generators; transformers; microphones; loudspeakers; electrical overload protectors; electrical switches; electrical connectors; wiring harnesses; wires with connectors; electrical cables; optical navigational equipment and autopilots; first aid kits; food and beverage preparation equipment; fire extinguishers; aircraft assemblies and parts; aircraft seats; and, trolleys (duty rate ranges from zero to 8.5 percent).

Production under FTZ procedures could exempt Airbus from customs duty payments on the foreign status components used in export production. On its domestic sales, Airbus would be able to choose the duty rate that applies to commercial passenger aircraft (zero) for the foreign status inputs noted above. Duties also could possibly be deferred or reduced on foreign status production equipment.

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