On Monday, March 25, 2024, Company filed FTZ application and expects final determination within 30 to 90 days
FTZ status and benefits would include opportunity for improving Company cash flow through reduction of taxes, fees and deferment of import duties
Mullen estimates that resulting deferred working capital on domestic sales could result in deferred capital outlays of $10 million for the remainder of fiscal year 2024
BREA, Calif., April 01, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) ("Mullen" or the "Company"), an electric vehicle ("EV") manufacturer, announces today the Company has filed for Foreign Trade Zone ("FTZ") status with the U.S. Department of Commerce at its commercial vehicle manufacturing and assembly center located in Tunica, Mississippi. Mullen filed its application on March 25, 2024, and expects final determination within 30 to 90 days.
Upon approval as a designated FTZ site, Mullen would qualify for a variety of benefits including deferment of payments on duties owed related to import fees. With FTZ approval the Company would be able to align duty payment to vehicles sold so the pressure on cash flow would be dramatically inverted from the current model of paying duty at time of import. Upon approval, Mullen estimates that resulting deferred working capital on domestic sales could result in deferred capital outlays of $10 million for the remainder of FY 2024.
For international sales, the Company would be exempt from duties and taxes owed on vehicles sold, potentially delivering a bottom line pickup of 27% of the import cost associated with both Class 1 EV cargo vans and Class 3 EV trucks.
"Achieving FTZ approval status is an important strategic initiative to further strengthen Mullen's supply chain management and deliver significant cash flow savings," said David Michery, CEO and chairman of Mullen Automotive. "As we continue to expand our distribution internationally, the FTZ would provide a competitive advantage with no duties or tariffs paid on sales outside of the U.S."
Potential FTZ benefits include:
- Enhanced global competitiveness
- Reduction of taxes and fees
- Increase logistics flexibility
- Relief from inverted tariffs
- Duty exemption on re-exports
- Duty elimination on waste, scrap and yield loss
- Weekly entry savings
- Duty deferral
- Improve global supply chain performance
What is a Foreign-Trade Zone?
A Foreign-Trade Zone (FTZ or Zone) is a secure area within the United States where foreign and domestic merchandise is generally considered to be in international commerce and outside of U.S. Customs territory for duty and tariff purposes. Companies that operate in foreign-trade zones can defer, reduce or eliminate Customs duties. FTZs were created by Congress in 1934 to encourage international trade and capital investment in the United States. Zones offer a competitive advantage for U.S.-based operations and attract foreign investment to America by encouraging multinational firms to establish operations in the U.S.
2024年3月25日星期一,公司提交了自貿區申請,預計將在30至90天內做出最終決定
自貿區的地位和福利將包括通過減少稅收、費用和延期進口關稅來改善公司現金流的機會
馬倫估計,由此產生的國內銷售延期營運資金可能導致2024財年剩餘時間的遞延資本支出爲1000萬美元
加利福尼亞州佈雷亞,2024 年 4 月 1 日(GLOBE NEWSWIRE)— 通過IBN——電動汽車(“EV”)製造商Mullen Automotive, Inc.(納斯達克股票代碼:MULN)(“馬倫” 或 “公司”)今天宣佈,該公司已在其位於密西西比州圖尼卡的商用車製造和裝配中心向美國商務部申請對外貿易區(“自貿區”)地位。馬倫於2024年3月25日提交了申請,預計將在30至90天內做出最終裁決。
獲准成爲指定自貿區地點後,馬倫將有資格獲得各種福利,包括延期支付與進口費用相關的關稅。獲得自貿區的批准後,該公司將能夠調整所售車輛的關稅支付,因此現金流壓力將與目前的進口時繳納關稅的模式大相徑庭。經批准,馬倫估計,由此產生的國內銷售延期營運資金可能導致2024財年剩餘時間的遞延資本支出爲1000萬美元。
在國際銷售方面,該公司將免除所售車輛所欠的關稅和稅款,從而有可能提供與1級電動貨車和3級電動卡車相關的進口成本的27%的底線皮卡。
馬倫汽車首席執行官兼董事長戴維·米切裏表示:“獲得自貿區批准地位是一項重要的戰略舉措,旨在進一步加強馬倫的供應鏈管理,節省大量現金流。”“隨着我們繼續擴大國際分銷,自貿區將提供競爭優勢,無需爲美國以外的銷售支付關稅或關稅。”
自由貿易區的潛在好處包括:
增強全球競爭力
減少稅收和費用
提高物流靈活性
減免反向關稅
再出口免稅
取消對廢物、廢料和產量損失的關稅
每週入場費儲蓄
延期關稅
改善全球供應鏈績效
什麼是對外貿易區?
對外貿易區(FTZ或Zone)是美國境內的一個安全區域,外國和國內商品通常被視爲國際商業中的商品,出於關稅和關稅的目的,則在美國關稅區以外的地區。在對外貿易區經營的公司可以推遲、減少或取消關稅。自貿區由國會於1934年設立,旨在鼓勵美國的國際貿易和資本投資。區域爲美國的業務提供了競爭優勢,並通過鼓勵跨國公司在美國開展業務來吸引外國投資到美國。