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FTZ Board Acts on Requests from Shipyard, Power Tool Facility

Thursday, December 29, 2016
Sandler, Travis & Rosenberg Trade Report

Shipyard. The Foreign-Trade Zones Board has approved production under zone procedures at the Gulf Island Shipyards LLC facilities within FTZ 279 in Houma, La., which are used for the repair, maintenance, and fabrication of tugs, barges, dredges, offshore drilling rigs, and other vessels. This approval is subject to the following conditions.

- Any foreign steel mill products admitted to the zone for the approved activity, including plate, angles, shapes, channels, rolled steel stock, bars, pipes, and tubes, not incorporated into goods otherwise classified and used in manufacturing, will be subject to full customs duties in accordance with applicable law unless the FTZ Board determines that the same item is not then being produced by a domestic steel mill.

- Gulf Island must annually advise the FTZ Board as to significant new contracts with appropriate information concerning foreign purchases otherwise dutiable so that the Board may consider whether any foreign dutiable items are being imported for manufacturing in the zone primarily because of FTZ procedures and whether the Board should consider requiring customs duties to be paid on such items.

Power Tool Facility. The FTZ Board has received a notification of proposed production activity at the Black & Decker facility within subzone 38E in Fort Mill, S.C. Black & Decker already has authority to produce power tools and their parts and components, the packaging and kitting of power tools, and the repair and rework of power tools, parts, and accessories within subzone 38E. The current request would add finished products and foreign-status materials/components to the scope of authority. Comments are due no later than Feb. 7.

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