[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]
[Notices]
[Page 65626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23005]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[B-63-2016]
Foreign-Trade Zone (FTZ) 177--Evansville, Indiana; Notification
of Proposed Production Activity; Best Chairs, Inc. d/b/a Best Home
Furnishings (Upholstered Furniture); Ferdinand, Cannelton and Paoli,
Indiana
Best Chairs, Inc. d/b/a Best Home Furnishings (Best Home) submitted
a notification of proposed production activity to the FTZ Board for its
facilities in Ferdinand, Cannelton and Paoli, Indiana within FTZ 177.
The notification conforming to the requirements of the regulations of
the FTZ Board (15 CFR 400.22) was received on September 14, 2016.
The Best Home facilities are located within Sites 5, 6, and 7 of
FTZ 177 and currently have authority to conduct cut-and-sew activity
using certain foreign micro-denier suede upholstery fabrics and
polyurethane fabrics to produce upholstered furniture and related parts
(upholstery cover sets) on a restricted basis (Board Order 1807 and
Doc. B-35-2014). Board Order 1807 authorized the production of
upholstered furniture (sofas, sectionals, loveseats, chairs, and
recliners) for a five-year period, with a scope of authority that only
provides FTZ savings on a limited quantity (2.28 million square yards
per year) of foreign origin, micro-denier suede upholstery fabric
finished with a hot caustic soda solution process. Doc. B-35-2014
expanded the company's scope of authority to include certain
polyurethane fabrics. All foreign upholstery fabrics other than micro-
denier suede finished with a hot caustic soda solution process,
polyurethane fabrics backed with ground leather, and wet coagulation
process, 100 percent polyurethane coated fabrics used in Best Home's
production within FTZ 177 are subject to full customs duties.
The current request seeks to extend Best Home's existing FTZ
authority indefinitely (with no increase in the company's annual
quantitative limit of 2.28 million square yards) and to add foreign-
status leather and non-textile foreign-status components to the scope
of authority. This request also seeks to clarify certain HTSUS numbers
that apply to the company's existing authority for micro-denier suede
upholstery fabric finished with a hot caustic soda solution process.
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 Best Home from customs
duty payments on the foreign-status components used in export
production. On its domestic sales, Best Home would be able to apply the
finished upholstery cover set (i.e., furniture part) or finished
furniture duty rate (free) for the authorized fabrics and additional
components (indicated below). Customs duties also could possibly be
deferred or reduced on foreign-status production equipment.
The components sourced from abroad include: Micro-denier suede
fabric finished with a hot caustic soda finishing process; upholstery
leather; linear actuators and motors; transformers; power adaptors;
handset controllers; power cables; and, Y-cables (duty rate ranges from
1.6% to 17.2%). The request indicates that upholstery leather will be
admitted to the zone in privileged foreign status (19 CFR 146.41),
thereby precluding inverted tariff benefits on upholstery leather. All
other foreign, unauthorized upholstery fabrics or other components used
in the production activity would continue to be admitted to the zone in
domestic (duty paid) status.
Public comment is invited from interested parties. Submissions
shall be addressed to the Board's Executive Secretary at the address
below. The closing period for their receipt is November 2, 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
Board's Web site, which is accessible via www.trade.gov/ftz.
For further information, contact Elizabeth Whiteman at
[email protected] or (202) 482-0473.
Dated: September 19, 2016.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2016-23005 Filed 9-22-16; 8:45 am]
BILLING CODE 3510-DS-P