OFS Fitel, LLC (Optical Fiber Products), Carrollton, Georgia, has been approved for Foreign-Trade Zone procedures subject to restrictions excluding foreign textile inputs.

On January 25, 2021, the Foreign Trade Zone Board published in the Federal Register (86 FR 6865) Foreign-Trade Zone (FTZ) 26—Atlanta, Georgia; Authorization of Limited Production Activity; OFS Fitel, LLC (Optical Fiber Products), Carrollton, Georgia

The FTZ Board authorized the production activity subject to restrictions requiring that foreign-status optical fiber and optical bundles be admitted to the zone in privileged foreign status (19 CFR 146.41) and that foreign-status standard waterblock and non-waterblock aramid yarn be admitted to the zone in domestic/duty paid status (19 CFR 146.43).

On September 30, 2020, the Foreign Trade Zone Board published in the Federal Register (85 FR 61719) Foreign-Trade Zone (FTZ) 26--Atlanta, Georgia Notification of Proposed Production Activity, OFS Fitel, LLC (Optical Fiber Products) Carrollton, Georgia.

Production under FTZ procedures could exempt OFS Fitel 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, OFS Fitel would be able to choose the duty rates during customs entry procedures that apply to optical fibers and optical fiber cables, bundles and ribbon (duty rates are duty-free or 6.7%). OFS Fitel 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: Color chips (high concentration of pigments and additives encapsulated by a polymer); UV curable ink (liquid pre-polymer); epoxy; plastic jacketing compound; flame retardant plastic jacketing compound; acrylic plastic central members or rods; standard non-waterblock and waterblock aramid yarn; water block tape (nonwoven polyester); stainless steel wire; optical fibers; optical bundles; steel tape; alloy steel tape; and, jacketed plastic strength members (duty rate ranges from duty-free to 8.8%).

Comments were filed by DuPont and the National Council of Textile Organizations in opposition to the inclusion of foreign textile inputs.