On April 25, 2017, the FTZ Board published notice in the Federal Register (82 FR 19021) Foreign-Trade Zone (FTZ) 68—El Paso, Texas; Authorization of Production Activity; PGTEX USA, Inc.; (Fiber Glass Fabrics) El Paso, Texas.
On December 19, 2016, PGTEX USA, Inc. (PGTEX) submitted a notification of proposed production activity to the FTZ Board for its facility within FTZ 68--Site 3, in El Paso, Texas.
The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (82 FR 1316-1317, January 5, 2017). The FTZ Board has determined that no further review of the activity is warranted at this time. The production activity described in the notification is authorized, subject to the FTZ Act and the FTZ Board's regulations, including Section 400.14, and further subject to a restriction requiring that foreign-status yarns (glass fiber) (HTSUS 7019.19), glass fibers (HTSUS 7019.90), and polyester yarn (HTSUS 5402.33) be admitted to the subzone in privileged foreign status (19 CFR 146.41).
The restriction that glass fibers and polyester yarn be admitted in "privileged foreign status" precludes inverted tariff benefits on such items on its domestic sales of fiber glass fabrics. Production under FTZ procedures will 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.