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Expanded Production Authority Sought for New York FTZ

Friday, November 17, 2017
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from Estee Lauder Inc. a notification of proposed production activity for its facilities in Melville, N.Y., within FTZ 52. Estee Lauder already has authority to manufacture and distribute skin care, fragrance, and cosmetic products within FTZ 52 and the current request would add a finished product (hair straightening styling balm) to the scope of authority. Comments on this notification are due no later than Dec. 27.

Production under FTZ procedures could exempt Estee Lauder from customs duty payments on the foreign-status materials and components used in export production. On its domestic sales, for foreign-status materials and components in the existing scope of authority, Estee Lauder would be able to choose the duty rate that applies to hair straightening styling balm (zero). It would also be able to avoid duty on foreign-status components that become scrap or waste, and duties could possibly be deferred or reduced on foreign-status production equipment.

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