FTZ

Hitachi Automotive Products (USA), Inc.
FOREIGN-TRADE ZONE 29F

INTRODUCTION

Foreign-Trade Zone Number 29F is located in Harrodsburg, Kentucky, approximately 55 miles from Louisville, Kentucky. Hitachi Automotive Products (USA), Inc. (HAP) acts as a subzone operator under an agreement with Louisville and Jefferson County Riverport, grantee of Foreign-Trade Zone Number 29.

SUMMARY

Name of Operator and Corporate Affiliation

HAP is operator of Subzone 29F, located at 955 Warwick Road, Harrodsburg, Kentucky 40330. HAP's corporate affiliate, HITACHI AMERICA, LTD., 50 Prospect Ave., Terrytown, N.Y. 10591-4698.

Description of the Subzone Site and Plant Facilities

Subzone 29F consists of a tract of land adjacent to the city limits of Harrodsburg with a western boundary at Warwick Road. The site consists of a 280,000 square foot manufacturing facility, a 52,000 square foot on-site warehouse facility, and an added 39,900 square foot machining center.

HAP's zone procedure for manufacturing and warehousing automotive products are as authorized by Board Order No. 497, dated December 21, 1990, 56 Fed. Req. 674, (January 8, 1991). U.S. Customs granted activation of Subzone 29F on April 1, 1991.

INFORMATION SUMMARY

What is a Foreign-Trade Zone?

A Foreign-Trade Zone (FTZ) is a specially designated area, in or adjacent to a U.S. Customs port of Entry, which is considered to be outside the customs territory of the U.S. Subzones are special-purpose zones, usually at manufacturing plants.

Legal Authority and Requirements

FTZ Act of 1934 (19 U.S.C. 81a-81u) est. FTZ Board (Commerce, Treasury, Army) to license and regulate FTZ's.
FTZ Board regulations (15 CFR Part 400)
Customs regulations (19 CFR Part 146)

How is the Customs Service involved?

The Customs Service is responsible for the transfer of merchandise into and out of a zone and for matters involving the collection of revenue.

Zones are supervised by U.S. Customs officers through periodic checks and visits; the security of the zone must meet U.S. Customs requirements

What are the advantages of operating a Foreign-Trade Zone?

Customs duty is paid when merchandise is transferred from a foreign-trade zone to the customs territory for consumption (cash flow and interest expense savings)
Goods may be exported from a zone free of duty and tax
Merchandise may remain in a zone indefinitely whether or not subject to duty.
Products can be entered at duty rate on product in condition it leaves the zone when lower than component rate (inverted customs duty savings).
No duty on scrap.
Simplification of import procedures (direct delivery).
Nondutiablility of labor, overhead, and profit.
Foreign goods and domestic goods held for export are exempt from state/local inventory taxes.