[Federal Register Volume 78, Number 67 (Monday, April 8, 2013)]
[Notices]
[Page 20889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08111]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-29-2013]


Foreign-Trade Zone (FTZ) 158--Vicksburg/Jackson, Mississippi; 
Notification of Proposed Production Activity; Bauhaus USA, Inc.; 
(Upholstered Furniture); Saltillo, Mississippi

    The Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 
158, submitted a notification of proposed production activity on behalf 
of Bauhaus USA, Inc. (Bauhaus), located in Saltillo, Mississippi. The 
notification conforming to the requirements of the regulations of the 
FTZ Board (15 CFR 400.22) was received on February 28, 2013.
    The Bauhaus facility is located within Site 16 of FTZ 158 and 
currently has authority to conduct cut-and-sew activity using certain 
foreign micro-denier suede upholstery fabrics to produce upholstered 
furniture and related parts (upholstery cover sets) on a restricted 
basis (see, Board Order 1600, 74 FR 262-263, 1-5-2009). Board Order 
1600 authorized the production of upholstered furniture (sofa, chairs, 
and recliners) for a five-year period, with a scope of authority that 
only provides FTZ savings on a limited quantity (3.5 million square 
yards/year) of foreign origin, micro-denier suede upholstery fabric 
finished with a hot caustic soda solution process. All foreign 
upholstery fabric other than micro-denier suede fabric used in Bauhaus' 
production within FTZ 158 is subject to full customs duties.
    The current request seeks to extend the company's current FTZ 
authority indefinitely. Pursuant to 15 CFR 400.14(b), FTZ activity 
would be limited to the specific foreign-status materials and 
components and specific finished products described in the submitted 
notification (as described below) and subsequently authorized by the 
FTZ Board.
    Production under FTZ procedures could exempt Bauhaus from customs 
duty payments on the foreign micro-denier suede upholstery fabric used 
in export production. On its domestic sales, Bauhaus would be able to 
apply the finished upholstery cover set (i.e., furniture part) or 
finished furniture duty rate (free) for the micro-denier suede fabric 
listed below. Customs duties also could possibly be deferred or reduced 
on foreign status production equipment.
    The proposed scope of authority under FTZ procedures would only 
involve micro-denier suede upholstery fabrics finished with a hot 
caustic soda solution process, as detailed in the notification (duty 
rate ranges from 2.7 to 17.2%). All other material inputs used in the 
production activity would be in domestic (duty paid) status.
    Public comment is invited from interested parties. Submissions 
shall be addressed to the FTZ Board's Executive Secretary at the 
address below. The closing period for their receipt is May 20, 2013.
    A copy of the notification will be available for public inspection 
at the Office of the Executive Secretary, Foreign-Trade Zones Board, 
Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230-0002, and in the ``Reading Room'' section of the 
FTZ Board's Web site, which is accessible via www.trade.gov/ftz.
    For further information, contact Pierre Duy at 
[email protected], or (202) 482-1378.

    Dated: April 2, 2013.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2013-08111 Filed 4-5-13; 8:45 am]
BILLING CODE 3510-DS-P