Application Submitted for Subzone Status for Materials Science Technology in FTZ #265
November 5, 2009An application has been submitted to the Foreign-Trade Zones (FTZ) Board (the Board) by the city of Conroe, grantee of FTZ 265, requesting special-purpose subzone status for the elastomer manufacturing facility of Materials Science Technology, Inc. (MST), located in Conroe, Texas. The application was formally filed on October 27, 2009.
MST’s facility is located at 3607 North Loop 336 West, Conroe, Texas. The facility is used for the research, development, manufacturing, warehousing, and distribution of a polyphosphazene elastomer intermediate which will be used in aerospace, oil and gas production, and medical device applications. Current annual production capacity is 15 metric tons with projections up to 100 metric tons. The request indicates that the manufacturing process also produces a fire-retardant chemical by-product. Components and materials sourced from abroad (representing some 20% of the value of the finished product) include octafluoropentanol, trifluoroethanol, and phosphonitrilic chloride trimer (duty rates range from 2.8% to 5.5%).
FTZ procedures could exempt MST from customs duty payments on the foreign components used in export production. The company anticipates that some 50% of the plant’s shipments will be exported. On its domestic sales, MST would be able to choose the duty rates during customs entry procedures that apply to the elastomer (duty-free) and the fire-retardant chemical (2.8%) for the foreign inputs noted above. FTZ designation would further allow MST to realize logistical benefits through certain customs procedures. The request indicates that the savings from FTZ procedures would help improve the plant’s international competitiveness.
Public comments on the application are invited from interested parties. Submissions (original and 3 copies) should be addressed to Office of the Executive Secretary, Foreign-Trade Zones Board, Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW., Washington, DC 20230-0002. The closing period for comments is January 4, 2010. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to January 19, 2010.
For further information, contact: Diane Finver; phone: (202) 482-1367, e-mail: Diane_Finver@ita.doc.gov.
