Illinois Factory Gets Tax Break for Coated Fabrics Production
Published Date: 2/17/2026
Notice
Summary
AFC Specialty Coatings Group in Lake in the Hills, Illinois, wants to start making special coated fabrics and tapes inside Foreign-Trade Zone 22. This move lets them use certain imported materials with lower taxes, helping them save money and speed up production. The government got their request on February 10, 2026, and is reviewing it now.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
AFC Seeks FTZ Production for Coated Fabrics
AFC Specialty Coatings asked the Foreign-Trade Zones Board to allow production of PTFE- and silicone-coated fabrics and related tapes and parts at its Lake in the Hills, Illinois facility. The request was received February 10, 2026, and the listed finished products have duty rates shown in the notice ranging from 3.3% to 5.8%. FTZ production activity would be limited to the specific products and materials described in the submission.
Imported Materials Listed with Duty Ranges
The notice lists specific foreign-status inputs AFC would use (e.g., silicone rubber, PTFE aqueous dispersion, woven Kevlar, PPS, PAI, PESU) and shows duty rates for these materials ranging from duty-free up to 14.90%. Those material duty rates apply to the listed components when used under the FTZ request.
Some Imports Subject to Special Trade Measures
The request notes certain materials may be subject to duties under section 1702(a)(1)(B) (IEEPA), section 232, or section 301 depending on origin, and that PTFE aqueous dispersion may be subject to an antidumping/countervailing duty (AD/CVD) order or investigation from certain countries. The notice states such merchandise must be admitted to FTZs in privileged foreign status (19 CFR 146.41).
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