Eastman Chem Seeks Duty Breaks in Tennessee Trade Zone
Published Date: 1/15/2026
Notice
Summary
Eastman Chemical Company in Kingsport, Tennessee wants to add new paraxylene-based products to their Foreign-Trade Zone production list, which could save them money on import duties. This change affects their manufacturing process and invites public comments until February 24, 2026. If approved, it helps Eastman keep costs down while making important chemical products.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
FTZ Addition Could Lower Eastman’s Duties
Eastman Chemical Company in Kingsport, Tennessee filed to add new paraxylene-based products to its Foreign-Trade Zone (FTZ) Subzone 204B production authority. If the Board approves the addition, Eastman says this could save the company money on import duties for those products.
Finished Products Carry 5.5–6.5% Duties
The notification lists proposed finished products (including Dimethyl Terephthalate, 1,4-Cyclohexanedimethanol, DOTP/DBT plasticizer, PET variants, and several polycyclohexane terephthalates) with duty rate ranges from 5.5% to 6.5%. Those duty rates apply to the listed finished products as described in the notice.
Paraxylene Listed as Duty‑Free Input
The proposed foreign‑status material paraxylene is identified in the notice as duty free. That treatment applies to paraxylene when it is the foreign‑status material described in the submission.
Some Inputs May Face Section 1702/301 Duties
The request states certain materials/components may be subject to duties under section 1702(a)(1)(B) of the International Emergency Economic Powers Act or section 301 of the Trade Act of 1974, depending on country of origin. The notice also says such subject merchandise must be admitted to FTZs in privileged foreign status under 19 CFR 146.41.
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