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FTZ Board OKs Zone Changes, Rejects Production Request

Thursday, November 15, 2018
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has recently authorized the following.

- expansion of production authority at the CNH Industrial America LLC facility within subzone 41I in Sturtevant, Wis., which already had authority to produce tractors, tractor/combine components, and 4-wheel drive axle subassemblies, to include additional finished products and foreign-status materials and components

- expansion of FTZ 283 to include a service area of Crockett County as well as portions of Weakley, Henry, Carroll, and Henderson counties in Tennessee, adjacent to the Memphis U.S. Customs and Border Protection port of entry

- reorganization of FTZ 81 to include a service area of Rockingham, Strafford, Carroll (partial), Belknap (partial), Cheshire, Hillsborough, Merrimack (partial), Sullivan, and Grafton (partial) counties in New Hampshire, in and adjacent to the Portsmouth CBP port of entry

- reorganization of FTZ 9 to include a service area of the city and county of Honolulu as well as the counties of Hawaii, Kauai, and Maui, in and adjacent to the Hilo and Kona (Hawaii), Kahului and Kihei (Maui), Honolulu (Oahu), and Nawiliwili-Port Allen (Kauai) CBP ports of entry

However, the FTZ Board has rejected a request for export-only production authority at the Gildan Yarns LLC facility in Salisbury, N.C., which is used to produce spun cotton and cotton/polyester yarns for export. The Board said only that the requirements of its regulations and the FTZ Act have not been satisfied.

Finally, the FTZ Board has received from the Piedmont Triad Partnership, grantee of FTZ 230, a notification of proposed production activity at the Patheon Softgels facility in High Point, N.C. Patheon already has authority to produce certain prescription pharmaceutical products and soft gelatin capsules within subzone 230C and the current request would add a finished product and a foreign status material or component to the scope of authority. Comments are due no later than Dec. 26.

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