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New FTZ in New York; Expanded Authority Sought for Fabric and Fiber Facilities

Friday, March 21, 2014
Sandler, Travis & Rosenberg Trade Report

New York Zone. The FTZ Board has approved the establishment of FTZ 289 under the alternative site framework with a service area of Ontario, Wayne, Seneca, Yates, Steuben and Livingston counties in New York, adjacent to the Rochester U.S. Customs and Border Protection port of entry. This approval is subject to the standard 2,000-acre activation limit as well as a three-year ASF sunset provision for subzones that would terminate authority for subzone 289A if no foreign-status merchandise is admitted for a bona fide customs purpose within three years.

Geotextile Fabric. The Foreign-Trade Zones Board has received from the Georgia Foreign-Trade Zone Inc., grantee of FTZ 26, a request for additional production authority at the PBR Inc. d/b/a SKAPS Industries facilities in Athens, Ga., which are used for the production of non-woven geotextile fabric using polypropylene staple fiber.

SKAPS requested FTZ production authority in a notification proceeding in 2013, and after an initial review that authority was limited to an initial five-year term and included a restriction that precludes inverted tariff benefits on foreign polypropylene staple fiber used in the production of non-woven geotextile fabrics for U.S. consumption. SKAPS now seeks to remove this restriction by obtaining authority to choose the duty rate that applies to nonwoven geotextile fabrics (zero) for the polypropylene staple fiber sourced from abroad (4.3% duty).

Comments on this request are due no later than May 20.

Carbon Fiber. The FTZ Board is inviting comments through April 21 on new evidence regarding a request to produce polyacrylonitrile fiber and PAN-based carbon fiber under FTZ procedures at the Toray Carbon Fibers America Inc. facility within FTZ 83 in Decatur, Ala. This new evidence was submitted by Toray in response to the examiner’s preliminary recommendation for approval with a restriction requiring the reexport of all foreign-status PAN.

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