San Diego Company Eyes Tariff Break for Phones
Published Date: 6/5/2026
Notice
Summary
Foxx Development, Inc. in San Diego wants to make smartphones using special parts from other countries inside a Foreign-Trade Zone, which means they can save on some import taxes. This change could speed up production and lower costs for the company. People have until July 15, 2026, to share their thoughts before the plan moves forward.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
FTZ Production Lets Foxx Import Duty-Free
Foxx Development requested permission to make smartphones inside Foreign-Trade Zone (FTZ) Subzone 153O in San Diego so the finished smartphones would be admitted duty free. The company says producing inside the FTZ can speed up production and lower the company's import taxes and costs.
Specific Smartphone Parts Listed Duty-Free
The notification lists specific foreign-status smartphone parts that would be duty free if used in the FTZ, including system-on-chips, baseband processors, application processors, LPDDR5 memory, eMMC 5.1 NAND flash, camera modules, smartphone battery packs, display modules, LCD assemblies, and OLED assemblies. Businesses that import or supply those parts to the San Diego FTZ facility would be affected by this duty treatment.
Some Parts May Still Face Trade Duties
The request states certain materials/components may be subject to duties under section 122 (Trade Act of 1974), section 232 (Trade Expansion Act of 1962), or section 301 (Trade Act of 1974), depending on country of origin. Those subject items must be admitted to FTZs in privileged foreign status under 19 CFR 146.41, which is a specific compliance requirement for importers supplying the FTZ facility.
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Key Dates
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Related Federal Register Documents
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Previous / Next Documents
Previous: 2026-11332 — Foreign-Trade Zone (FTZ) 213, Notification of Proposed Production Activity; Project and Construction Welding, Inc. dba IMS Inc.; (Marine Watertight Sliding Doors); Cape Coral, Florida
Project and Construction Welding, Inc. (IMS Inc.) in Cape Coral, Florida, wants to make marine watertight sliding doors and control systems using some imported parts. This change lets them save on import duties (some parts are duty-free or low duty) and speed up production starting soon. It’s great news for the company and anyone who needs tough, reliable marine doors!
Next: 2026-11334 — Foreign-Trade Zone (FTZ) 124, Notification of Proposed Production Activity; OneSubsea; (Subsea Oil Equipment); Bayou Vista, Louisiana
OneSubsea wants to start making special underwater oil equipment at their Bayou Vista, Louisiana plant inside Foreign-Trade Zone 124. This move could save them money on import taxes for certain parts, with public comments open until July 15, 2026. If approved, it means smoother production and potential cost benefits for the company and its customers.