|
Production
Sharing
By
the Numbers
By:
Ralph Watkins
Investment in
production-sharing operations (which use U.S.-made components in
foreign assembly plants) has become an integral part of global
efforts to reduce manufacturing costs and has contributed to the
accelerated pace of cross-border integration of manufacturing in
North America and the Caribbean Basin. Imports that incorporate
U.S. content can enter the United States free of duty or at
reduced duties under the production-sharing provisions
(9802.00.60-9802.00.90) of chapter 98 of the Harmonized Tariff
Schedule of the United States (HTS), which provide the only
official U.S. source of data documenting the use of U.S.
components in foreign assembly
This article highlights developments in 2000 regarding
imports under the production-sharing provisions, cross-border
integration of manufacturing in North America and the Caribbean
Basin, and the use of U.S.-made components in imports from Asia
and
Europe.
Production sharing is an
important aspect of globalization. Also known as cross-border
manufacturing networks, production sharing occurs when the
processes used to manufacture a good are conducted in more than
one country. Such rationalization of production allows companies
to reduce costs or to improve response time, thereby becoming more
competitive, increasing profits, or both.
...Continued
in the pages of Twin Plant News, Subscribe Today! |
