Wednesday, December 18, 2013

Athletic Tape Manufacturer Granted FTZ with Restrictions

North American Tapes of Watertown, New York, tapes has been granted authority to use foreign trade zone procedures for imported fabric used in the manufacture of athletic tape. North American Tapes' application to the Foreign Trade Zone Board was published in the Federal Register in July 2011. In September 2011, the National Textile Association, American Fiber Manufacturers Association, American Manufacturing Trade Action Coalition, and National Council of Textile Organizations filed comments in opposition. Opposition comments were also filed by Alice Mills, Inc., Copland Industries, Inc., Hamrick Mills, and Milliken and Company. Today the Foreign Trade Zone Board published in the Federal Register it's decision to approve North American Tapes' application subject to the following restrictions:

1. All foreign status fabrics admitted to the zone for NAT's manufacturing (production) activity must be re-exported (entry for U.S. consumption is not authorized).

2. The manufacturing (production) authority for NAT shall remain in effect for an initial period of five years from the date of approval.

That first restriction is of great importance as it means that for tape produced for domestic consumption North American Tapes will have to pay the full duty on the imported fabrics used in the manufacture of tape. As far as production for export, in general the U.S. industry has not opposed such use of foreign trade zone procedures, therefore this approval may be seen as a victory for the trade associations and individual companies that opposed North American Tapes' application.

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