FOREIGN-TRADE ZONE 29F

INTRODUCTION

Foreign-Trade Zone Number 29F is located in Harrodsburg, Kentucky, approximately 55 miles from Louisville, Kentucky. Hitachi Astemo Americas, Inc. acts as a subzone operator under an agreement with Louisville and Jefferson County Riverport, grantee of Foreign-Trade Zone Number 29.

SUMMARY

Name of Operator and Corporate Affiliation

Hitachi Astemo Americas, Inc. is operator of Subzone 29F, located at 955 Warwick Road, Harrodsburg, Kentucky 40330. Hitachi Astemo Americas, Inc.'s corporate affiliate, HITACHI AMERICA, LTD., 50 Prospect Ave., Tarrytown, N.Y. 10591-4698.

Description of the Subzone Site and Plant Facilities

Subzone 29F consists of an 85-acre lot that encompasses: A Main Plant and Electronics Manufacturing Facility, Koki Center, Material Distribution Facility, and Machining Center. Also part of Subzone 29F is two off site service warehouses that make up 130,000 sq. feet combined. Hitachi Astemo Americas, Inc. operates the subzone for the production, warehousing, and distribution of various automotive components.

Hitachi Astemo Americas, Inc.'s zone procedure for manufacturing and warehousing automotive products are as authorized by Board Order No. 497, dated December 21, 1990, 56 Fed. Req. 674, (January 8, 1991). U.S. Customs granted activation of Subzone 29F on April 1, 1991.

Hitachi Astemo Americas, Inc.'s Locations in Harrodsburg, Kentucky; Farmington Hills Office and Loa Angeles Office are proudly to have C-TPAT Certified since 2003 Customs Trade Partnership Against Terrorism.

INFORMATION SUMMARY

What is a Foreign-Trade Zone?

A Foreign-Trade Zone (FTZ) is a specially designated area, in or adjacent to a U.S. Customs port of Entry, which is considered to be outside the customs territory of the U.S. Subzones are special-purpose zones, usually at manufacturing plants.

Legal Authority and Requirements

FTZ Act of 1934 (19 U.S.C. 81a-81u) est. FTZ Board (Commerce, Treasury, Army) to license and regulate FTZ's
FTZ Board regulations (15 CFR Part 400)
Customs regulations (19 CFR Part 146)

How is the Customs Service involved?

The Customs Service is responsible for the transfer of merchandise into and out of a zone and for matters involving the collection of revenue.

Zones are supervised by U.S. Customs officers through periodic checks and visits; the security of the zone must meet U.S. Customs requirements

What are the advantages of operating a Foreign-Trade Zone?

Customs duty is paid when merchandise is transferred from a foreign-trade zone to the customs territory for consumption (cash flow and interest expense savings)
Goods may be exported from a zone free of duty and tax
Merchandise may remain in a zone indefinitely whether or not subject to duty.
Products can be entered at duty rate on product in condition it leaves the zone when lower than component rate (inverted customs duty savings).
No duty on scrap.
Simplification of import procedures (direct delivery).
Nondutiablility of labor, overhead, and profit.
Foreign goods and domestic goods held for export are exempt from state/local inventory taxes.