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FTZ Actions on Lawn Equipment, Furniture, Power Products Facilities, Texas Zone

Monday, January 23, 2017
Sandler, Travis & Rosenberg Trade Report

Lawn and Garden Equipment. The Foreign-Trade Zones Board has authorized, on a limited basis, production under zone procedures at the MTD Consumer Group Inc. facility within FTZ 158 in Verona, Miss., which is used for the production of lawn and garden equipment. This authorization is subject to a requirement that foreign-status textile grass catcher bags be admitted in domestic/duty-paid status.

Furniture. The FTZ Board has approved an expansion of production under zone procedures at the Best Chairs Inc. d/b/a Best Home Furnishings facilities within FTZ 177 in Ferdinand, Cannelton, and Paoli, Ind., which are used for the production of upholstered furniture. This authorization is subject to a requirement that foreign status upholstery leather be admitted to the zone in privileged foreign status.

Best Home already had authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics and polyurethane fabrics to produce upholstered furniture and related parts on a restricted basis. Specifically, the company is authorized to produce upholstered furniture (sofas, sectionals, loveseats, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (2.28 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. This authority was subsequently expanded to include certain polyurethane fabrics.

The FTZ Board has now extended Best Home’s existing FTZ authority indefinitely (with no increase in the company’s annual quantitative limit) and added foreign-status leather and non-textile foreign-status components to the scope of authority.

Outdoor Power Products. The FTZ Board has received a from STIHL Incorporated a notification of proposed production activity for its facilities within subzone 20E in Virginia Beach, Va. STIHL already has authority to produce outdoor power products at this facility and the current request would add an additional foreign status component to the scope of authority. Comments on this request are due no later than Feb. 28.

Texas Zone Reorganization. The FTZ Board has authorized the following changes to FTZ 168 in the Dallas/Ft. Worth, Texas, area upon the applicant’s submission of specified information: (1) the designation of a subzone for the use of Samsung Electronics America Inc., and (2) the removal of 101 acres from an existing site in Gainesville, Texas.

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