Tesla's Megapack factory in Brookshire, Texas received foreign-trade zone status from the FTZ Board, according to approval published in the Federal Register on Monday. The designation runs for 14 months and allows the manufacturer to defer duties on imported parts.
The trade zone status does not exempt Tesla from China tariffs on lithium iron phosphate cells used in Megapacks. Tesla's own application states that parts subject to Section 301, 232, or 122 tariffs will continue to pay those duties.