It is well known in the textile industry that there is no domestic U.S. production of acrylic or rayon tow of the kind used in flock production. Production under FTZ procedures could exempt Claremont Flock from customs duty payments on foreign status materials used in export production. On its domestic sales, Claremont Flock would be able to choose the duty rate during customs entry procedures that applies to textile flock (free) for the acrylic and rayon tow (duty rate – 7.5%) sourced from abroad. Customs duties also could possibly be deferred or reduced on foreign status production equipment.
Approval of FTZ procedures would place Claremont at parity with it's sole domestic U.S. competitor, Cellusuede Products of Rockford, Illinois. Cellusuede was granted authorization for FTZ procedures for acrylic and rayon in 2009.
Following publication in the Federal Register, within a few days, there will be a 40 period for public comment. Approval is expected by October.