[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Notices]
[Pages 37281-37282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15425]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-45-2014]


Foreign-Trade Zone (FTZ) 158--Vicksburg/Jackson, Mississippi, 
Notification of Proposed Production Activity, Southern Motion, Inc., 
(Upholstered Furniture), Pontotoc and Baldwyn, Mississippi

    The Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 
158, submitted a notification of proposed production activity on behalf 
of Southern Motion, Inc. (SMI), located in Pontotoc and Baldwyn, 
Mississippi. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on June 20, 
2014.
    A separate application for subzone designation at the SMI 
facilities was submitted and will be processed under Section 400.31 of 
the FTZ Board's regulations. The facilities are used to manufacture and 
distribute upholstered furniture as well as cut-and-sewn upholstery 
covering sets. The proposal indicates that SMI seeks to utilize 
foreign-origin ``micro-denier suede'' fabric finished with a hot 
caustic soda solution that would be transformed into furniture 
upholstery covering sets under FTZ procedures. The finished upholstery 
covering sets would then be assembled into finished chairs, seats, 
sofas, loveseats, and sectionals manufactured at the SMI facilities in 
Mississippi. All foreign upholstery fabric other than micro-denier 
suede fabric used in SMI's production within FTZ 158 would be admitted 
to the proposed subzone in domestic (duty-paid) status (19 CFR 146.43), 
thereby precluding FTZ-related duty savings on such fabrics.
    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.

[[Page 37282]]

    Production under FTZ procedures could exempt SMI from customs duty 
payments on the foreign micro-denier suede upholstery fabric used in 
export production. On its domestic sales, SMI 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 upholstery fabric 
described 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 (the applicant indicates such fabric is 
not produced by U.S. mills), 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 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 August 11, 2014.
    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: June 25, 2014.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2014-15425 Filed 6-30-14; 8:45 am]
BILLING CODE 3510-DS-P