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FTZ Board Asked to Expand Illinois Subzone, Production Authority at Upholstery Plant

Tuesday, July 01, 2014
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from the Greater Rockford Airport Authority, grantee of FTZ 176, a request on behalf of UniCarriers Americas Corporation in Marengo, Ill., to expand subzone 176E to include an additional site. No authorization for additional production activity has been requested at this time. Comments on this request are due no later than Aug. 11.

The FTZ Board has also received from The Greater Mississippi Foreign-Trade Zone Inc., grantee of FTZ 158, a notification of proposed production activity at the Southern Motion Inc. facilities in Pontotoc and Baldwyn, Miss. A separate application for subzone designation at these facilities has also been submitted. The SMI facilities are used to manufacture and distribute upholstered furniture as well as cut-and-sewn upholstery covering sets. Comments on this notification are due by Aug. 11.

SMI seeks to utilize foreign-origin micro-denier suede fabric finished with a hot caustic soda solution that would be transformed into furniture upholstery covering sets under FTZ procedures. The finished sets would then be assembled into finished chairs, seats, sofas, loveseats and sectionals manufactured at the SMI facilities in Mississippi. All foreign upholstery fabric other than micro-denier suede fabric used in SMI’s production within FTZ 158 would be admitted to the proposed subzone in domestic (duty-paid) status, thereby precluding FTZ-related duty savings on such fabrics.

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