FTZ 83 Proposed Production Activity Notification: Adtran Inc. Telecommunications Equipment, Huntsville, Alabama
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Adtran Inc. has submitted a notification to the Foreign-Trade Zones (FTZ) Board for proposed production activity at its facility in Huntsville, Alabama, located within Subzone 83G. The notification, received on March 26, 2026, seeks authorization to manufacture optical line termination devices and network channel cards — both of which carry duty-free finished product rates — using a wide range of foreign-status components and materials. The proposed foreign-status inputs span dozens of electronic and mechanical components, including capacitors, resistors, integrated circuits (microcontrollers, CPUs, FPGAs, DRAM, EEPROM), printed circuit boards, connectors, diodes, transistors, and packaging materials. Duty rates on these inputs range from duty-free up to 6.2%. Certain materials are also subject to additional duties under Section 122 (Trade Act of 1974), Section 232 (Trade Expansion Act of 1962), or Section 301 (Trade Act of 1974) depending on country of origin, and must be admitted to the FTZ in privileged foreign status under 19 CFR 146.41. The FTZ framework allows Adtran to defer, reduce, or eliminate customs duties on imported components used in domestic manufacturing, improving cost competitiveness for U.S.-based production of telecom infrastructure equipment. Public comments are invited through May 11, 2026, and should be submitted to ftz@trade.gov.
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Key Changes
- Adtran Inc. proposes new FTZ production activity at Subzone 83G, Huntsville, Alabama, authorized under 15 CFR 400.22
- Finished products to be manufactured: optical line termination devices and network channel cards (both duty-free upon export/entry)
- Over 50 categories of foreign-status components authorized for import with duty rates ranging from duty-free to 6.2%
+ 3 more changes with Pro
Obligations
What this law requires
Adtran Inc. must limit FTZ production activity to only the specific foreign-status materials/components and finished products described in the submitted notification and subsequently authorized by the FTZ Board
Materials and components subject to Section 122 (Trade Act of 1974), Section 232 (Trade Expansion Act of 1962), or Section 301 (Trade Act of 1974) duties must be admitted to the FTZ in privileged foreign status as defined in 19 CFR 146.41
Production activity at the Huntsville, Alabama facility within Subzone 83G must conform to the requirements of the FTZ Board's regulations at 15 CFR 400.22
Only optical line termination devices and network channel cards (both with duty-free finished product rates) may be manufactured under this FTZ authorization
Only the specifically listed foreign-status components and materials with duty rates ranging from duty-free to 6.2% may be used in FTZ production activity