Brightpoint North America L.P. Seeks Subzone in FTZ #72
July 30, 2009An application has been submitted to the Foreign-Trade Zones Board by the Indianapolis Airport Authority, grantee of FTZ #72, requesting special-purpose subzone status for the cell-phone kitting and distribution facilities of Brightpoint North America L.P. (Brightpoint), located in Plainfield, Indiana. The application was submitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended, and the regulations of the board, on July 21, 2009.
The Brightpoint facilities (1,470 employees, 60,000,000 unit capacity) comprise two sites on 52.92 acres: Site 1 (34.34 acres) is located at 501 Airtech Parkway, Plainfield; and Site 2 (18.58 acres) is located at 1251 South Perry Road, Plainfield. The facilities are used for cell-phone kitting, testing, programming, packaging, warehousing, and distribution. Components and materials sourced from abroad represent 70-90% of the value of the finished product, with duty rate ranges from 0 to 17.6%.
FTZ procedures could exempt Brightpoint from customs duty payments on the foreign components used in export production. The company anticipates that some 5% of the plant’s shipments will be exported. On its domestic sales, Brightpoint would be able to choose the duty rates during customs entry procedures that apply to cell phone sets (duty-free) for the foreign inputs noted above. FTZ designation would further allow Brightpoint to realize logistical benefits through the use of weekly customs entry procedures. Customs duties also could possibly be deferred or reduced on foreign status production equipment. The request indicates that the savings from FTZ procedures would help improve the plant’s international competitiveness.
Elizabeth Whiteman of the FTZ Staff has been designated examiner to evaluate and analyze the facts and information presented in the application and case record and to report findings and recommendations to the Board.
Public comment is invited from interested parties. Submissions (original and 3 copies) must be addressed to the Board’s Executive Secretary at the address below. The closing period for their receipt is September 28, 2009. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to October 13, 2009.
A copy of the application will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 20230-0002, and in the ‘‘Reading Room” section of the Board’s website.
For further information, contact: Elizabeth Whiteman at Elizabeth_Whiteman@ita.doc.gov or (202) 482-0473.
