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Heavy Equipment Facility Seeks to Expand FTZ Production Authority

Thursday, May 24, 2018
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from Deere-Hitachi Construction Machinery Corp. a notification of proposed production activity for its facility within FTZ 230 in Kernersville, N.C. DHCMC already has authority to produce finished and unfinished hydraulic excavators within sites 30 and 32 of FTZ 230, and the current request would add forestry machinery, forestry machinery frames/booms/arms, and hydraulic excavator frames/booms/arms to the scope of authority. Comments on this notification are due no later than July 3.

Production under FTZ procedures could exempt DHCMC from customs duty payments on the foreign-status materials and components used in export production. On its domestic sales, for the specified foreign-status materials and components DHCMC would be able to choose the zero duty rate that applies to various finished goods. DHCMC would be able to avoid duty on foreign-status components that become scrap or waste, and duties also could possibly be deferred or reduced on foreign-status production equipment.

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