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The U.S. Department of Commerce has officially granted Mullen Automotive, Inc., a prominent electric vehicle (EV) manufacturer, Foreign Trade Zone (FTZ) status for its facility in Tunica, Mississippi. This designation is a significant development for Mullen, providing substantial financial benefits and bolstering the company’s commitment to enhancing American manufacturing jobs.
Key Highlights
- Deferred Duty Payments: Mullen anticipates deferring approximately $21 million in duty payments for FY2024 and FY2025.
- Duty Exemption on Exports: Exports from Mullen are now 100% exempt from duties, potentially enhancing profitability by an average of 20%.
- Increased Competitiveness: The FTZ status positions Mullen advantageously in both domestic and international markets.
David Michery, CEO of Mullen Automotive, expressed his enthusiasm about the approval: “Foreign Trade Zone approval for our Tunica facility is a significant milestone for us, further strengthening our manufacturing position while delivering a competitive advantage and cash flow saving opportunities,” he said. Michery also highlighted the broader economic benefits for Tunica, emphasizing the positive impact on local development.
The benefits of FTZ status for Mullen include:
- Enhanced Global Competitiveness
- Reduction of Taxes and Fees
- Increased Logistics Flexibility
- Relief from Inverted Tariffs
- Duty Exemption on Re-exports
- Duty Elimination on Waste, Scrap, and Yield Loss
- Weekly Entry Savings
- Duty Deferral
- Improved Global Supply Chain Performance
Understanding Foreign-Trade Zones
Foreign-Trade Zones, established in 1934, are secure areas in the United States where goods are treated as if outside U.S. Customs territory. These zones facilitate the deferment, reduction, or elimination of customs duties, making them crucial for U.S.-based operations engaged in international trade.
About Mullen Automotive
Based in Southern California, Mullen Automotive operates two U.S.-based manufacturing facilities, one in Tunica, Mississippi, and another in Mishawaka, Indiana. The company has recently started production of commercial EVs and received IRS approval for federal tax credits on its vehicles, further promoting its growth and the adoption of EV technology.
To discover more about Mullen Automotive’s advancements and offerings, visit their website at www.MullenUSA.com.
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