California Firm Seeks Tax Break for Desalination Gear
Published Date: 6/15/2026
Notice
Summary
Energy Recovery Inc. wants to start making desalination equipment in their San Leandro, California facility inside Foreign-Trade Zone 18. This means they can bring in certain parts from other countries with lower or no import taxes, helping them save money and speed up production. People have until July 27, 2026, to share their thoughts on this plan.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Import Parts at Low or No Duty
Energy Recovery Inc. plans to bring specified foreign parts (like stainless steel pump parts, titanium interconnects, and fiberglass housings) into its San Leandro facility under Foreign-Trade Zone procedures where duty rates on those parts range from duty-free to 2.8%. This lets the company avoid or reduce import taxes on those listed components.
Finished Product Duty-Free Status
The proposed finished product—high pressure exchanger units—has a duty rate of duty-free when produced in the FTZ facility in San Leandro. That classification is explicitly listed in the notification.
Section 122/301 Materials Must Get Privileged Status
The request notes some materials are subject to duties under section 122 or section 301 of the Trade Act of 1974 and must be admitted to FTZs in privileged foreign status under 19 CFR 146.41. That requirement applies depending on the country of origin for those materials.
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
2026-15564, Foreign-Trade Zone (FTZ) 202, Notification of Proposed Production Activity; Industrial Parts Depot, LLC; (Engine Parts and Components); Carson, California
2026-15422, Foreign-Trade Zone (FTZ) 153, Notification of Proposed Production Activity; Aptera Motors Corp; (Solar Electric Vehicles); Carlsbad, California
Aptera Motors in Carlsbad, California wants to make solar electric vehicles using some imported parts with special trade benefits. This means they can save on import taxes (ranging from 0% to 5.5%) for parts like batteries, airbags, and body panels. The plan was officially submitted on July 23, 2026, and if approved, it could help Aptera build greener cars more affordably and faster.
2026-14967, Foreign-Trade Zone (FTZ) 45; Authorization of Limited Production Activity; SSI Shredding Systems, Inc.; (Industrial Shredders and Compactors); Wilsonville and Portland, Oregon
SSI Shredding Systems in Oregon got the green light to start limited production of industrial shredders and compactors in their Foreign-Trade Zone facilities. They must pay duties on steel and aluminum parts unless special trade rules apply. This change kicks in now and helps SSI grow while following trade rules.
2026-14968, Foreign-Trade Zone (FTZ) 173; Authorization of Limited Production Activity; PINNACLEMOD LLC; (Prefabricated Modular Steel Buildings); Aberdeen, Washington
PINNACLEMOD LLC in Aberdeen, Washington, got the green light to start limited production of their prefabricated modular steel buildings inside Foreign-Trade Zone 173. They can bring in some wood parts duty-free but must pay duties on most steel and aluminum unless special rules apply. This approval kicks in now and helps the company save money while making their cool buildings.
2026-14969, Foreign-Trade Zone (FTZ) 38; Authorization of Limited Production Activity; GE Gas Turbines (Greenville) LLC; (Gas Turbines); Greenville, SC
GE Gas Turbines in Greenville, SC, got the green light to do some limited production in their Foreign-Trade Zone 38 facility. They can now make gas turbines with some rules about paying duties on certain metal parts. This update kicks in right away and helps GE manage costs while keeping trade fair.
2026-14954, Foreign-Trade Zone (FTZ) 18, Notification of Proposed Production Activity; Pactron, Inc.; (Printed Circuit Board Assemblies); Santa Clara, California
Pactron, Inc. in Santa Clara wants to start making printed circuit board assemblies and related products in Foreign-Trade Zone 18. This means they can use certain imported parts with lower or no import taxes, helping them save money and speed up production. The government got their request on July 13, 2026, and will decide soon if they can go ahead.
Previous / Next Documents
Previous: 2026-11930, Fiberglass Door Panels From People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
The U.S. Department of Commerce found that fiberglass door panels from China are being sold in the U.S. for less than their fair price. This means importers of these panels will face new duties starting June 15, 2026, to protect American businesses. If you buy or sell these door panels, get ready for some changes that could affect prices and timing.
Next: 2026-11932, Global Kings Logistics/Kamordeen, Complainant v. Mediterranean Shipping Company (USA) Inc., Respondent; Notice of Filing of Complaint and Assignment
Global Kings Logistics is officially complaining that Mediterranean Shipping Company messed up their invoices by mixing charges and leaving out important details. This affects businesses relying on clear shipping bills and could lead to changes in how invoices are handled. The case kicks off now, with decisions expected by mid-2027, so keep an eye on your shipping paperwork!