Tech giant Apple took a big step toward expanding its production facility in Mesa, Arizona last month when it requested permission from the U.S. Foreign-Trade Zone (FTZ) Board to expand the types of devices it can build and components it can import to the facility, according to a report on the Federal Registry.
The Mesa production facility that Apple is looking to expand originally belonged to GT Advanced, a defunct manufacturer that used to supply Sapphire glass for Apple devices. When the company declared bankruptcy, Apple took ownership of the plant.
If the FTZ Board approves Apple’s request for permission to import components and build new devices at the site, the company’s production costs could fall significantly. Production under FTZ procedures could exempt Apple from customs duty payments on the foreign materials/components used in export production.