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New FTZ Subzone in Pa., Expanded Authority at Furniture Factories

Tuesday, August 13, 2013
Sandler, Travis & Rosenberg Trade Report

The Foreign-trade Zones Board has approved the establishment of subzone 247A at the GE Transportation facilities in Lawrence Park Township and Grove City, Pa. The Board is currently considering a notification of proposed production activity for these facilities, which 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.

The FTZ Board has authorized indefinitely cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts at the following facilities within FTZ 158: the Bauhaus USA Inc. facility in Saltillo, Miss.; the H.M. Richards Inc. facility in Guntown, Miss; and the Lane Furniture Industries Inc. facilities in Belden, Saltillo and Verona, Miss. However, the annual volumes of such fabrics finished with a caustic soda solution that may be admitted to the zone under non-privileged foreign status are limited to 3.5 million square yards for Bauhaus, 6.5 million square yards for H.M. Richards and 6.5 million square yards for Lane. In addition, these companies must admit all foreign upholstery fabrics other than micro-denier suede upholstery fabrics finished with a caustic soda solution to the zone under domestic (duty-paid) status.

The FTZ Board has approved the expansion of FTZ 26 under the alternative site framework to include Columbia County, Ga., adjacent to the Columbia, S.C., U.S. Customs and Border Protection port of entry.

The FTZ Board has received from the Port of Houston Authority, grantee of FTZ 84, a request for subzone status for the Toshiba International Corporation facilities in Houston, Texas. On June 13 the FTZ Board authorized production under FTZ procedures at these facilities, which are used for the production of electric motors and generators for hybrid electric vehicles. Comments on the request for subzone status are due no later than Sept. 23.

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