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FTZ Board Considers Production Request, Establishes New Subzone

Tuesday, October 30, 2018
Sandler, Travis & Rosenberg Trade Report

Agricultural Equipment Production. The Foreign-Trade Zones Board has received from AGCO Corporation, operator of subzone 119M, a notification of proposed production activity for its facilities in Jackson and Round Lake, Minn., which are used for the production of agricultural equipment and related subassemblies and components. Comments are due no later than Dec. 10.

The request indicates that textile-reinforced rubber hoses, conveyor belts, and transmission belts; gaskets of textile materials; textile sound absorbers; safety belts of fabric; fabric-reinforced cab isolators; headliners incorporating fabric; windscreens of fabric; sound suppressors incorporating fabric; sun visors of fabric; and seats with fabric surfaces will be admitted to the zone in privileged foreign status, thereby precluding inverted tariff benefits on such items.

The request also indicates that (a) pneumatic tires of rubber, iron pipe fittings and adapters, steel washers, tapered roller bearings, bearing cups, bearing races, and bearing housings are subject to antidumping and/or countervailing duty investigations or orders if imported from certain countries, (b) steel and stainless steel cross-members are subject to Section 232 additional tariffs, and (c) certain materials and components are subject to Section 301 additional tariffs when imported from China. All such goods must be admitted into FTZs in privileged foreign status.

New Subzone. The FTZ Board has approved the establishment of subzone 259B at the Digi-Key Corporation facility in Thief River Falls, Minn.

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