2025-12695Notice

Texas Tech Firm Eyes Tax Dodge for Memory Drives in Free Zone

Published Date: 7/8/2025

Notice

Summary

Avant Technology, Inc. in Pharr, Texas wants to make memory modules and solid-state drives using certain imported parts with special duty benefits inside Foreign-Trade Zone 12. This move could save money on import taxes and speed up production. Public comments are open until August 18, 2025, so anyone interested can share their thoughts.

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

FTZ Production for SSDs and Memory Modules

Avant Technology asked to make memory modules and solid-state drives (SSD)/USB drives inside Foreign-Trade Zone 12 at Pharr, Texas. The notice says the proposed finished products would be admitted duty-free, the notification was received July 2, 2025, and public comments are accepted through August 18, 2025.

Imported Components Face Varying Duties

The proposed foreign-status materials/components include items with duty rates ranging from duty-free up to 5.8%. The notification also states some components may be subject to duties under section 1702, section 232, and section 301 depending on country of origin, and those decisions require admission to FTZs in privileged foreign status under 19 CFR 146.41.

FTZ Benefits Limited to Listed Items

The FTZ production activity would be limited to the specific foreign-status materials/components and specific finished products described in the notification and later authorized by the Board. That means only the listed inputs and finished products (as described in the filing) would be eligible for FTZ procedures.

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Key Dates

Published Date
7/8/2025

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
Foreign-Trade Zones Board
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