On April 10, 2010, the Foreign Trade Zone Board published in the Federal Register (83 FR 15360) Foreign-Trade Zone 158--Vicksburg, Mississippi; Application for Production Authority; MTD Consumer Group Inc., (Textile Grass-Catcher Bags), Verona, Mississippi.
In 2016, MTD requested FTZ production authority in a notification proceeding (15 CFR 400.22 and 400.37). The request was opposed by Highland Industries. After an initial review, the requested production authority was approved subject to a restriction requiring that textile grasscatcher bags be admitted in domestic/duty-paid status (Doc. B–65–2016, 82 FR 6489, January 19, 2017). This pending application seeks authority to use foreign-status textile grass-catcher bags in the production of walk-behind mowers. As requested, production under FTZ procedures could exempt MTD from customs duty payments on the textile grass-catcher bags used in export production. The company estimates that less than ten percent of MTD’s walk-behind lawn mowers are exported. On its domestic sales, MTD would be able to choose the duty rate during customs entry procedures that applies to walk-behind lawn mowers (duty-free) for the textile grass-catcher bags (duty rate 3.8%). MTD would be able to avoid duty on textile grasscatcher bags which become scrap/waste. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.