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FTZ Authority Sought for Texas Computer Facility

Tuesday, October 01, 2013
Sandler, Travis & Rosenberg Trade Report

The Foreign Trade Zones Board is inviting comments through Nov. 9 on a notification of proposed production activity at the Flextronics America LLC facility within FTZ 183 in Austin, Texas. This facility is used for the machining, assembly, programming, testing, packaging, final stage processing and repair of automatic data processing machines. FTZ activity would be limited to specific foreign-status materials and components and specific finished products described in the submitted notification and subsequently authorized by the FTZ Board.

Production under FTZ procedures could exempt Flextronics from customs duty payments on the foreign status components used in export production. On its domestic sales, Flextronics would be able to choose the duty rate that applies to automatic data processing machines for the foreign status inputs. Customs duties also could possibly be deferred or reduced on foreign status production equipment.

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