[Federal Register Volume 81, Number 68 (Friday, April 8, 2016)]
[Notices]
[Pages 20617-20618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08144]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-17-2016]


Notification of Proposed Production Activity; Max Home, LLC; 
Subzone 158F (Upholstered Furniture); Iuka and Fulton, Mississippi

    The Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 
158, submitted a notification of proposed production activity to the 
FTZ Board on behalf of Max Home, LLC (Max Home), for its facilities in 
Iuka and Fulton, Mississippi. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on March 17, 2016.
    Max Home previously had 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 1744, 76 FR 11425, March 2, 2011). 
Board Order 1744 authorized the production of upholstered furniture 
(chairs, seats, sofas, sleep sofas, and sectionals) for a five-year 
period, with a scope of authority that only provided FTZ savings on a 
limited quantity (2.23 million square yards per year) of foreign 
origin, micro-denier suede upholstery fabric finished with a hot 
caustic soda solution process (i.e., authorized fabrics). All foreign 
upholstery fabrics other than micro-denier suede finished with a hot 
caustic soda solution process (i.e., unauthorized fabrics) used in Max 
Home's production within Subzone 158F were subject to full customs 
duties.
    The current request seeks to renew Max Home's previously approved 
FTZ authority indefinitely (with no increase in the company's annual 
quantitative limit of 2.23 million square yards) and to add foreign-
status leather and certain polyurethane-type fabrics to the scope of 
authority. Pursuant to 15 CFR 400.14(b), additional FTZ authority 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 Max Home from customs 
duty payments on the foreign-status fabrics used in export production. 
On its domestic sales, Max Home would be able to apply the finished 
upholstery cover set (i.e., furniture part) or finished furniture duty 
rate (free) for the previously authorized fabrics and the additional 
fabrics (indicated below). Customs duties also could possibly be 
deferred or reduced on foreign-status production equipment.
    Authority to admit foreign-status fabrics to Subzone 158F would 
only involve micro-denier suede upholstery fabrics finished with a hot 
caustic soda solution process (classified within HTSUS Headings 5407, 
5512, 5515, 5516, 5801, and 5903), polyurethane fabrics backed with 
ground leather (5903.20.2500), wet coagulation process 100 percent 
polyurethane coated fabrics (5903.20.2500), and upholstery leather 
(Heading 4107), as detailed in the notification (duty rate ranges from 
free to 14.9%).
    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 18, 2016.
    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.

[[Page 20618]]

    For further information, contact Pierre Duy at [email protected] 
or (202) 482-1378.

    Dated: March 31, 2016.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2016-08144 Filed 4-7-16; 8:45 am]
 BILLING CODE 3510-DS-P