Foreign-Trade Zone Update: Twin Disc, Inc. Seeks New Production Authority

You might care about this because the U.S. government is considering a request that could affect international trade and manufacturing in Texas. The Department of Commerce's Foreign-Trade Zones Board announced that Twin Disc, Inc. has applied to expand its manufacturing operations within Foreign-Trade Zone (FTZ) 297, located in Lufkin, Texas. This notice explains that Twin Disc, Inc. wants to produce specific goods like transmissions, transmission systems, and torque converters under FTZ procedures. Operating within an FTZ allows companies to bring foreign goods into the U.S. without paying duties until those goods leave the zone and enter the U.S. market. For items that are exported directly from the FTZ, duties may be avoided altogether. This can lower production costs and make American-made products more competitive internationally. The Board will decide if these new production activities will be approved. The document outlines the process for public comments, giving interested parties a chance to voice their opinions on this proposed change before the July 6, 2026 deadline. This kind of announcement shows how regulatory bodies approve and oversee special economic zones designed to boost American manufacturing and exports. This document is particularly interesting because it highlights how specific companies use Foreign-Trade Zones to gain a competitive edge. It shows a concrete example of the FTZ program in action. Twin Disc, Inc. is looking to add new products to its authorized production list within Subzone 297A. The goods involved are marine and heavy-duty off-highway power transmission equipment, including transmissions and torque converters. The duty rates on these components range from duty-free to 2.5 percent. By producing these items within an FTZ, the company can postpone or even eliminate customs duties on imported materials used in manufacturing. This can lead to cost savings, which might allow the company to invest more in its operations, create jobs, or offer more competitive prices. This notice is a standard but important step in the administrative process that allows businesses to use these special zones for economic benefits. It confirms the government's ongoing support for programs that aim to improve U.S. manufacturing and export capabilities. People involved in international trade, manufacturing, and economic development would find this document highly relevant. Specifically, businesses that import or export goods, particularly those in the heavy machinery, marine, or automotive parts industries, should pay attention. Companies operating within or considering an FTZ would find this a useful example of the approval process. Local government officials and economic development agencies in areas with FTZs might also be interested, as these activities can bring jobs and investment to their regions. Legal professionals specializing in trade law, customs regulations, or corporate compliance would also want to review such notices. Furthermore, anyone interested in the specifics of U.S. trade policy and how it supports domestic manufacturing would find value in understanding these types of announcements. It provides a real-world look at how trade regulations are applied and adapted to support business operations.