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
2026-18795, Approval of Reorganization (Expansion of Service Area); Foreign-Trade Zone 147, Berks County, Pennsylvania
The Foreign-Trade Zones Board just gave the green light to expand Foreign-Trade Zone 147 in Berks County, Pennsylvania, to now include Schuylkill County. This means businesses in the new area can enjoy faster and easier trade benefits starting now, with a limit of 2,000 acres for the zone. It’s a big win for local companies looking to boost their global trade game without extra costs or delays.
2026-18793, Reorganization of Foreign-Trade Zone 12 (Expansion of Service Area) Under Alternative Site Framework; McAllen, Texas
The Foreign-Trade Zones Board just gave the green light to expand Foreign-Trade Zone 12’s service area to include Willacy County, Texas. This means businesses near the Hidalgo port can now enjoy special trade benefits, helping speed up imports and exports. The change follows all the rules and keeps the zone’s size limit at 2,000 acres, with no extra costs announced.
2026-18497, Foreign-Trade Zone (FTZ) 50, Notification of Proposed Production Activity; Catalina Cylinders, Inc.; (Aluminum Gas Cylinders); Garden Grove, California
2026-17357, Foreign-Trade Zone (FTZ) 30, Notification of Proposed Production Activity; Beauty Industry Group; (Hair Extension Kits); Salt Lake City, Utah
Beauty Industry Group wants to start making hair extension kits at their Salt Lake City facility inside Foreign-Trade Zone 30. This means they can use certain imported materials with special trade benefits, saving money and speeding up production. The government got their request on July 27, 2026, and is reviewing it now.
2026-17195, Foreign-Trade Zone (FTZ) 23, Notification of Proposed Production Activity; Niagara Specialty Metals; (Steel Sheets); Akron, New York
2026-17241, Foreign-Trade Zone (FTZ) 183, Notification of Proposed Production Activity; Ichor Systems, Inc.; (Semiconductor Equipment); Austin, Texas
Ichor Systems in Austin wants to make special parts for semiconductor machines inside Foreign-Trade Zone 183. This means they can save money and speed up production by using certain imported materials with fewer fees. The government is reviewing this plan, which could boost local tech manufacturing soon.
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!