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Regulatory · 3 min

FTZ 155: Garwood power plant production notice

Notification under 15 CFR 400.22, not an authorization. 232/301 components need privileged foreign status. No claimed savings.

Cover illustration: FTZ 155: Garwood power plant production notice

The Foreign-Trade Zones Board published a notification of proposed production activity for Kerrville Public Utility Board Public Facility Corporation in FTZ 155, Subzone 155F (Garwood, Texas): a natural gas reciprocating internal combustion engine generation power plant facility (B-141-2026). The notice was placed on public inspection October 27, 2026 at 8:45 a.m. and is scheduled for publication October 28, 2026 (FR Doc. 2026-21928). Notification under 15 CFR 400.22 received October 19, 2026. Dated October 22, 2026, Juanita Chen, Acting Executive Secretary. Contact: Christopher Wedderburn, Chris.Wedderburn@trade.gov.

This is a proposed production notification, not an authorization. Activity would be limited to the listed foreign-status components and finished power plant facility if later authorized.

What a production notification is

Under 15 CFR 400.14(b), FTZ production activity would be limited to the specific foreign-status materials/components and finished products described in the notification and subsequently authorized by the Board. Filing the notification starts the public process; it does not by itself authorize production or invent duty savings. Background on FTZ benefits: www.trade.gov/ftz.

FR Doc. 2026-21928 · B-141-2026 · FTZ 155 Subzone 155F · Garwood, Texas · public inspection Oct 27, 2026 8:45 a.m. · scheduled publication Oct 28, 2026
Finished product: natural gas reciprocating ICE generation power plant facility
Foreign-status components: stationary ICE engines · flywheels · base plates · three-phase synchronous alternators (duty-free to 2.4%)
232/301 components: privileged foreign status (19 CFR 146.41) · comments to ftz@trade.gov · close 40 days after publication (by our count, Dec 7, 2026)

Proposed product and components

  • Finished product: a natural gas reciprocating internal combustion engine generation power plant facility. The notice does not state a duty rate for the finished plant; this article does not invent one.
  • Foreign-status components: internal combustion engines for stationary power generation (cast iron and steel); engine flywheels (steel); engine base plates (steel); and three-phase synchronous alternators (steel and copper). Duty rates on those components range from duty-free to 2.4 percent.
  • Section 232 / 301: certain components may be subject to section 232 or section 301 duties depending on origin. Applicable 232/301 decisions require admission in privileged foreign status (19 CFR 146.41). Privileged foreign status locks in the duty rate at admission; inverted-tariff relief does not reduce those 232/301 duties.

Comment window

Public comments go to the Board's Executive Secretary at ftz@trade.gov. The closing period is 40 days after publication. By our count from October 28, 2026, that date is December 7, 2026. A copy of the notification will be available in the Online FTZ Information System on the Board website.

For other recent FTZ production-notification clusters, see FTZ proposed production: Yazaki, Norman Noble, Sanyo and FTZ proposed production: Metal Container and Pratt & Whitney.

FTZ vs drawback

FTZ production authorization and duty drawback are alternative duty-management tools. An FTZ can defer or invert duties on authorized foreign-status production; drawback refunds eligible ordinary duties after export or destruction when the claim otherwise qualifies. Neither path invents savings for this applicant on this notice alone. See five drawback types and how to file a duty drawback claim.

Action items

  • Treat this as a notification only; production is limited to what the Board later authorizes.
  • Map 232/301 components that would need privileged foreign admission under 19 CFR 146.41.
  • Comment by December 7, 2026 (by our count) via ftz@trade.gov if you have an interest.
  • Compare FTZ versus drawback as separate compliance designs; do not claim project-specific savings from this notice.
Key takeaways
  • FR Doc. 2026-21928 (B-141-2026): FTZ 155 Subzone 155F proposed production for a Garwood, Texas natural gas reciprocating ICE power plant. Public inspection Oct 27; scheduled publication Oct 28, 2026.
  • Foreign-status engines, flywheels, base plates, and alternators (duty-free to 2.4%). 232/301 goods require privileged foreign status; inverted tariff does not cut those duties.
  • Comments close 40 days after publication (by our count, Dec 7, 2026) at ftz@trade.gov.
  • Notification is not authorization. FTZ and drawback are alternative duty tools; this notice does not claim savings for the applicant.
Primary sources
  1. Foreign-Trade Zone (FTZ) 155, Notification of Proposed Production Activity; Kerrville Public Utility Board Public Facility Corporation (Natural Gas Reciprocating Internal Combustion Engine Generation Power Plant); Garwood, Texas (FR Doc. 2026-21928; B-141-2026) · Foreign-Trade Zones Board
  2. FTZ 155 Garwood power plant production notification (public inspection PDF) · Federal Register Public Inspection
  3. Foreign-Trade Zones · International Trade Administration
DA
DrawbackAI Team
We build software for the US duty drawback program — so the refund isn't reserved for billion-dollar importers and the firms that charge 30% to find it.

This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.

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