San Jose Batteries Dodge Duties in Special Zone Deal
Published Date: 1/13/2026
Notice
Summary
Rose Electronics in San Jose wants to make all kinds of battery packs and energy storage systems using some imported parts under special Foreign-Trade Zone rules. This move could save them money on import duties (around 2.7% to 3.4%) and speed up production. The government is reviewing this plan, which was officially submitted in early 2025, so keep an eye out for updates!
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
FTZ production for battery packs in San Jose
Rose Electronics asked to produce many types of battery packs and energy storage systems at its San Jose, CA facility as part of Foreign-Trade Zone (FTZ) 18. The listed finished products have duty rate ranges of 2.70% to 3.40% as described in the notification received January 7, 2025.
Component duty ranges and tariff restrictions noted
The notification lists foreign-status components with duty rates ranging from duty-free up to 5.30%, and states certain materials may be subject to section 232 or section 301 duties depending on country of origin. The notice says merchandise subject to those section 232/301 decisions must be admitted to FTZs in privileged foreign status under 19 CFR 146.41.
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Key Dates
Department and Agencies
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