On December 19, 2016, PGTEX USA, Inc. (PGTEX) has submitted to the Foreign Trade Zone Board a notification of proposed production activity for its facility in El Paso, Texas, within FTZ 68.
The PGTEX facility is located within Site 3 of FTZ 68. The facility is used for the production of fiber glass fabrics used in a variety of applications: Wind turbine blades, sporting goods, autos, shipbuilding, building materials and aerospace.
The components and materials sourced from abroad include yarns (glass fiber) (HTSUS 7019.19), glass fibers (HTSUS 7019.90), and polyester yarn (HTSUS 5402.33) (duty rates range from 4.3 to 6.5%). The applicant indicates that these foreign-sourced materials/components will be admitted to the FTZ in privileged foreign status (19 CFR 146.41). This would preclude inverted tariff benefits on such items on its domestic sales of fiber glass fabrics. Production under FTZ procedures could exempt PGTEX from customs duty payments on the foreign-status components used in export production. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.