Since 2013, PBR, Inc. d/b/a SKAPS Industries, an Athens, Georgia, producer of non-woven geotextiles has sought authorization to avoid duty on imported polypropylene staple fiber using Foreign-Trade Zone procedures. The application was opposed certain U.S. textile producers with the result that SKAPS' approval was limited to a five-year trial period and further limited to to preclude any inverted tariff relief on goods ultimately entering U.S. commerce, effectively limited to the benefit to fiber ultimately re-exported, plus some benefit on fiber that becomes waste in the manufacturing process.
In 2014, SKAPS tried, unsucessfully to have the restrictions removed, so they could enjoy relief from inverted tariff on goods entering U.S. commerce. U.S. textile industry opposition was strong, and on October 31, 2018, the FTZ Board published in the Federal Register its determination to deny the SKAPS application.
Meanwhile, the initial authorization of FTZ benefits relating to export and fiber lost to waste expired in August 2018. In a filing earlier this year SKAPS attempted to at least preserve that limited benefit. However, that request was opposed by certain U.S. textile producers and was denied. It appears that SKAPS will have one more opportunity to file for reinstatement of the limited benefit using a "long form" application
Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can read the full record of the proceedings at the links below. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.
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