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.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-20253, Foreign-Trade Zone (FTZ) 75; Authorization of Production Activity; Essai, Inc.; (Semiconductor Test Equipment); Chandler, Arizona
Essai, Inc. in Chandler, Arizona, got the green light to make semiconductor test equipment inside Foreign-Trade Zone 75. This means they can produce their high-tech gear with special trade benefits, helping them save money and speed up operations. The approval was finalized on September 28, 2026, so Essai can start or continue their work without any extra delays.
2026-20254, Foreign-Trade Zone (FTZ) 45; Authorization of Limited Production Activity; Qorvo US, Inc.; (Semiconductor Wafers and Modules); Hillsboro, Oregon
Qorvo US, Inc. in Hillsboro, Oregon got the green light to start limited production of semiconductor wafers and modules in Foreign-Trade Zone 45. This means they can use some imported parts with special rules for two years, helping them save money and speed up manufacturing. The approval came after a careful review and public input, so it’s official and ready to roll!
2026-20261, Foreign-Trade Zone (FTZ) 153; Authorization of Limited Production Activity; CMS Circuits, Inc.; (Electronic Manufacturing Services in Aerospace, Industrial, and Medical Applications); Murrieta, California
CMS Circuits, Inc. in Murrieta, California, got the green light to start limited production of electronic parts for aerospace, industrial, and medical uses inside Foreign-Trade Zone 153. This means they can bring in certain fiber optic bundles under special foreign status, but only for two years. The City of San Diego and local businesses will benefit from this move, which could boost local manufacturing and trade.
2026-19777, Foreign-Trade Zone (FTZ) 106, Notification of Proposed Production Activity; Hitachi Vantara Manufacturing; (Enterprise Datacenter Disk Storage System Hardware); Norman, Oklahoma
Hitachi Vantara Manufacturing in Norman, Oklahoma, wants to start making parts for datacenter disk storage systems inside Foreign-Trade Zone 106. This means they can use some imported materials with lower or no import taxes, helping them save money and speed up production. The government got their request on September 16, 2026, and is reviewing it now.
2026-19699, Foreign-Trade Zone (FTZ) 57, Notification of Proposed Production Activity; Eli Lilly and Company; (Drug Products); Concord, North Carolina
Eli Lilly wants to start making several important drug products at their Concord, North Carolina facility under special Foreign-Trade Zone rules. This move helps them save on import duties for certain materials while producing medicines for diabetes, migraines, inflammation, weight management, and Alzheimer's. The government got their request on September 17, 2026, and is reviewing it to give the green light soon.
2026-19698, Foreign-Trade Zone (FTZ) 93, Notification of Proposed Production Activity; Eli Lilly and Company; (Drug Products); Durham, North Carolina
Eli Lilly wants to start making several special drug products at their Durham, North Carolina facility under Foreign-Trade Zone 93. This means they can use certain imported materials without paying duties while producing medicines for diabetes, migraines, inflammation, weight management, and Alzheimer's. The change could speed up production and save money, with the proposal officially received on September 17, 2026.
Previous / Next Documents
Previous: 2026-00737, Foreign-Trade Zone (FTZ) 72, Notification of Proposed Production Activity; Iwis Drive Systems, LLC; (Customized Parts and Drive System Components); Whitestown, Indiana
Iwis Drive Systems in Whitestown, Indiana, wants to start making customized parts and drive system components using some imported materials with lower or no duties inside Foreign-Trade Zone 72. This move could save the company money on import taxes and speed up production. The government got their request on January 9, 2026, and is reviewing it to give the green light soon.
Next: 2026-00739, Certain Quartz Surface Products From India and the Republic of Türkiye: Continuation of Antidumping and Countervailing Duty Orders
The U.S. is keeping special taxes on quartz surface products from India and Türkiye because stopping them could hurt American businesses. These taxes, called antidumping and countervailing duties, help protect U.S. companies from unfair pricing and subsidies. This decision started on December 18, 2025, and means importers will keep paying extra fees for now.