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FTZ Production Authority Sought for Penn. Factories for Locomotives, Engines, Etc.

Wednesday, July 31, 2013
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board is accepting comments through Sept. 9 on a notification of proposed production activity for the GE Transportation facilities in Lawrence Park and Grove City, Pa., within FTZ 247. These facilities are used for the manufacturing of locomotives; off-highway vehicle wheels, inverters and brake systems; components, spare parts and subassemblies for locomotives and off-highway vehicles; drill equipment; marine equipment; stationary equipment; diesel locomotive engines; engine turbo chargers; power assemblies; other engine assemblies; and engine components and spare parts. Separate applications for subzone status at these facilities are currently pending.

Production under FTZ procedures could exempt GE Transportation from customs duty payments on the foreign status components used in export production. On its domestic sales, GE Transportation would be able to choose the duty rates that apply to specified products (ranging from zero to 12.8%) for foreign status inputs. Customs duties also could possibly be deferred or reduced on foreign status production equipment.

The request indicates that inputs classified under HTSUS 4202.92, 5911.90 and 6306.12 will be admitted to the zone in privileged foreign status, thereby precluding inverted tariff benefits on such items.

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