Thursday, July 28, 2016

Foreign Trade Subzone Approved for Maine Weaver

On July 28, 2016 the Foreign Trade Zone Board published in the Federal Register (81 FR 49619) Approval of Subzone Status--Flemish Master Weavers--Sanford, Maine.

Flemish Weavers also filed a Notification of Proposed Production Activity which is pending, with a decision from the FTZ Board expected soon. Production under FTZ procedures could exempt FMW from customs duty payments on foreign status materials used in export production. On its domestic sales, FMW would be able to choose the duty rate during customs entry procedures that applies to area rugs (free) for the polypropylene and polyester yarns (duty rates: 8.0% and 8.8%, respectively) sourced from abroad. Customs duties also could possibly be deferred or reduced on foreign status production equipment.

Authorization for production is opposed by National Spinning Co., Inc., the American Fiber Manufacturers Association, the National Council of Textile Organizations, and the United States Industrial Fabrics Institute. If FMW is denied authorization for production they will have the option of re-filing, using the more extensive Application for Production Activity.

To learn if your company can save money using FTZ procedures, contact David Trumbull at for an initial free consultation.

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