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Tesla has secured federal approval for production activity at its Texas Megafactory, where the company recently began producing Megapack 3 battery storage systems, under a special U.S. customs program.

According to a Federal Register notice published on Monday, the Foreign-Trade Zones (FTZ) Board authorized Tesla’s proposed production activity on a limited basis for fourteen months.

The approval applies to Tesla’s facility within Subzone 84AM, part of FTZ 84 in the Houston area.

Foreign-trade zones allow manufacturers to conduct certain activities involving imported materials before those goods formally enter the U.S. customs market.

Under the program, companies can defer customs duties on imported components until finished products enter the U.S. market. Products exported directly from the zone avoid U.S. customs duties.

However, duties on components incorporated into products sold domestically generally follow the finished product’s tariff rate, subject to exceptions for certain imported materials.

The approval provides Tesla with access to these customs procedures for its battery storage manufacturing operations. The federal notice does not specify any potential financial savings.