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FTZ Actions on Fabric, Petrochemical, Pharmaceutical, Flavor Compound, and Ship Facilities

Thursday, January 05, 2017
Sandler, Travis & Rosenberg Trade Report

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Fabric. The Foreign-Trade Zones Board has received from PGTEX USA Inc. a notification of proposed production activity at its facility within FTZ 68 in El Paso, Texas, which is used for the production of fiber glass fabrics used in applications such as wind turbine blades, sporting goods, autos, shipbuilding, building materials, and aerospace. The components and materials sourced from abroad include yarns, glass fibers, and polyester yarn, which will be admitted to the FTZ in privileged foreign status to preclude inverted tariff benefits on such items on domestic sales of fiber glass fabrics. Comments on this notification are due no later than Feb. 14.

Petrochemicals. The FTZ Board has received from Westlake Chemical Corporation a notification of proposed production activity at its facilities within subzone 87F in Sulphur, La., which are used for the production of petrochemicals, including polyethylene and styrene. Comments are due no later than Feb. 14.

Pharmaceuticals. The FTZ Board has authorized an expansion of production authority at the MSD International GMBH facility within subzone 7G in Las Piedras, Puerto Rico. MSD already had authority to produce certain pharmaceutical products and their intermediates within subzone 7G and the Board has now added a finished pharmaceutical product and foreign status materials/components to the scope of authority.

Flavor Compounds. The FTZ Board has approved production under zone procedures at the Givaudan Flavors Corporation facility within subzone 46G in Cincinnati, Ohio, which is used for the production of flavor compounds.

Ships. The FTZ Board has approved production under zone procedures at the TopShip LLC facility within FTZ 92 in Gulfport, Miss., which is used for the manufacture of oceangoing vessels. However, any foreign steel mill products admitted to the zone for the approved activity that are not incorporated into goods otherwise classified and that are used in manufacturing will be subject to full customs duties in accordance with applicable law unless the Board determines that the same item is not then being produced by a domestic steel mill. In addition, TopShip must annually advise the Board as to significant new contracts with appropriate information concerning foreign purchases otherwise dutiable so that the Board may consider whether any foreign dutiable items are being imported for manufacturing in the zone primarily because of FTZ procedures and whether the Board should consider requiring customs duties to be paid on such items.

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