Wednesday, February 13, 2019

FTZ Filing Seeks Exemption from U.S. Import Duty on Woven and Knitted Fabrics

The Foreign-Trade Zone Board has docketed an application from Woodbridge Group, El Paso, Texas, relating to production of laminates by bonding foam/fabric or foam/film and passing the foam over an open flame.

Production under FTZ procedures could exempt Woodbridge from customs duty payments on the foreign-status components used in export production. On its domestic sales, for the foreign-status materials/components noted below, Woodbridge would be able to choose the duty rates during customs entry procedures that apply to: Synthetic textile fabrics laminated with polyurethane foam and woven scrim; vinyl goods laminated with polyurethane foam and knit or woven scrim backing; vinyl goods laminated with polyurethane foam; synthetic textile and cotton mix fabrics laminated with polyurethane foam; and, polyurethane foam laminated with woven scrim (duty rate ranges from 2.7% to 6.5%). Woodbridge would be able to avoid duty on foreign-status components which become scrap/waste. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

The components and materials sourced from abroad include: Vinyl coated fabric with polyvinyl chloride; woven polyester fabric yarn dyed and coated with polyurethane; synthetic leather rolls; vinyl leather imitation; artificial leather cloth; sheets of plastics--cellular--polyvinyl chloride fabric of man-made fibers; sheets of plastics--non-cellular--polyvinyl chloride; sheets of plastics--cellular--100% plastic; rolls of cotton fabric coated with polyvinyl chlorides; fabric of man-made fibers coated with over 70% plastic; fabric of man-made fibers coated with under 70% plastic; sheets of plastics--cellular--polyvinyl chloride--over 70% plastic combined with 65/35 poly cotton fabrics; sheets of plastics--cellular--of other plastics; woven synthetic fabric rolls 100% for automotive industry; polyvinyl chloride leather; 100% polyester knit fabrics; 9803X polyester nonwoven backing; polyester nonwoven scrim; and, knitted polyester fabric 100% (circular knit) (duty rate ranges from duty-free to 14.9%).

Of particular interest to readers of Textiles and Trade is the request for exemption from import duties on the following fabrics:

DescriptionHTSUSDuty
Synthetic fiber woven fabric5407.52.20.6014.9%
Cotton fabric coated with polyvinyl chloride5903.10.10002.7%
Man-made fiber fabric coated with less than 70% of polyvinyl chloride5903.10.25007.5%
Man-made fiber fabric coated with less than 70% of polyurethane chloride5903.20.25007.5%
100% polyester warp knit fabric 6005.37.00.8010.0%
100% polyester circular knit fabric6006.31.00.4010.0%

Comments are due by March 25, 2019. If you are interested in opposing this application for exemption from import duties, Agathon Associates can assist you, contact David Trumbull at

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