U.S. Department Of Commerce Approves Mullen's Tunica, Miss., Facility As Foreign Trade Zone; Estimates That Resulting Deferred Working Capital On Domestic Sales Could Result In Deferred Outlays Of Up To $21M For FY24 And FY25

Author: Benzinga Newsdesk | May 09, 2024 09:36am

Mullen Automotive, Inc. (NASDAQ: MULN) ("Mullen" or the "Company"), an electric vehicle ("EV") manufacturer, announces today the Company has been approved for Foreign Trade Zone ("FTZ") status with the U.S. Department of Commerce for its commercial vehicle manufacturing and assembly center located in Tunica, Mississippi. A copy of Mullen's FTZ approval can be found here.

With FTZ approval, the Company now qualifies for a variety of benefits, including deferment of payments on duties related to import fees. For domestic U.S. sales, the Company is now able to match import duty payment to when vehicles are shipped from the zone. This key FTZ benefit reduces the pressure on cash flow which is significantly different from the previous model of paying duty at time of port entry. Mullen estimates that resulting deferred working capital on domestic sales could result in deferred outlays of up to $21 million for FY2024 and FY2025.

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