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New York Pump Manufacturer Seeks Authorization for FTZ Production Activity

Tuesday, December 24, 2013
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from Xylem Water Systems USA LLC, operator of Subzone 37D, a notification of proposed production activity for its facilities in Auburn, New York. Xylem already has authority to produce centrifugal pumps, submersible pumps and related controllers. The current request would add a new finished product (control panels) and certain foreign components to the scope of authority. Production under FTZ procedures could exempt Xylem from customs duty payments on the foreign status components used in export production. On its domestic sales, Xylem would be able to choose the duty rates during customs entry procedures that apply to control panels (2.7%) and centrifugal and submersible pumps (free) for the foreign status inputs noted below and in the existing scope of authority. Customs duties also could possibly be deferred or reduced on foreign status production equipment. The components and materials sourced from abroad include control panels, steel rivets, rubber diaphragms, axial fans, aluminum capacitors, metal brackets and pump stands (duty rate ranges from free to 2.9%). Comments on this request are due by Feb. 3.

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