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FTZ Board OKs New Subzone, Revised Production Authority

Tuesday, August 15, 2017
Sandler, Travis & Rosenberg Trade Report

New Texas Subzone. The Foreign-Trade Zones Board has approved the establishment of subzone 12B at the Universal Metal Products Inc. facility in Pharr, Texas.

Revised Authority for Washington Facility. The FTZ Board has approved a revision to the production authority granted for the SGL Automotive Carbon Fibers LLC facility within FTZ 203 in Moses Lake, Wash. Under authority SGLACF previously received to produce carbon fiber from foreign-status polyacrylonitrile fiber for export only within site 3, SGLACF was required to export all carbon fiber made from foreign-status PAN fiber. The FTZ Board has now replaced this export-only limitation with a requirement to admit all foreign-status PAN fiber (duty rate 7.5 percent) in privileged foreign status.

As a result, for U.S. entry of carbon fiber produced in this zone, SGLACF will make duty payment at the PAN fiber duty rate on the full value of PAN fiber introduced into the production process. This will include making duty payment at the PAN fiber duty rate on an estimated value of PAN fiber contained in scrap resulting from the production process (based on the actual percentage of scrap and the PAN-to-carbon-fiber ratio from the preceding year’s production).

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