[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Pages 1607-1608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00436]



Foreign-Trade Zones Board


Foreign-Trade Zone (FTZ) 40--Cleveland, Ohio; Notification of 
Proposed Production Activity; Swagelok Company (Valve Component Parts); 
Solon, Willoughby Hills, Highland Heights, and Strongsville, Ohio

    The Cleveland-Cuyahoga County Port Authority, grantee of FTZ 40, 
submitted a notification of proposed production activity to the FTZ 
Board on behalf of Swagelok Company (Swagelok) located in Solon, 
Willoughby Hills, Highland Heights, and Strongsville, Ohio. The 
notification conforming to the requirements of the regulations of the 
FTZ Board (15 CFR 400.22) was received on December 26, 2017.
    The Swagelok facilities are located within Subzone 40I. The 
facilities are used for production of industrial fittings, finished 
valves, pressure reducing valves, and regulators. 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 Swagelok from customs 
duty payments on the foreign-status components used in export 
production (estimated at 13 percent of production). On its domestic 
sales, for the foreign-status materials/components noted below, 
Swagelok would be able to choose the duty rates during customs entry 
procedures that apply to: High pressure reinforced plastic hoses; 
teflon tubing; plastic tubing with fittings; polytetrafluoroethylene 
and plastic hoses; plastic and nylon fittings and nuts; plastic and 
teflon ferrules; rubber hoses with and without fittings; rubber hoses 
with fittings reinforced or otherwise combined with textile materials; 
non-alloy steel seamless tubing; stainless steel tubing; welded 
stainless steel tubing; stainless steel flanges; straight or shaped 
stainless steel fittings; stainless steel butt-weld fittings; threaded, 
unthreaded, and welded-ends stainless steel fittings; machined flanges 
of alloy steel not including stainless; straight or shaped steel 
fittings; steel butt-welded fittings; steel adapter fittings without 
threads; brass tubes used in brass valve assemblies; brass fittings 
used in brass valve assemblies; brass fitting ferrules; nuts and 
ferrule sets used in brass fittings; nickel-chromium alloy tubing; 
nickel alloy fittings; aluminum ferrules, nuts, and ferrule kits; 
stainless steel flexible metal tubing; steel flexible tubing with 
fittings; pressure reducing valves; hydraulic solenoid valves; check 
valves; relief valves, and diaphragm valves (duty rate ranges from 
duty-free to 6.2%). Swagelok would be able to avoid duty on foreign-
status components which become scrap/waste. Customs duties also could 
possibly be deferred or reduced on foreign-status production equipment.
    The components and materials sourced from abroad include: Plastic 
caps used for component protection in shipping; teflon O-rings for 
valve connections; rubber gaskets and O-rings to prevent leakage; 
rubber gripper pads; rubber grommets; rubber bands used in valve 
applications; grafoil packing; replacement safety glass for pressure 
gauge lenses; glass face plates for gauges; forged non-alloy steel 
bars; carbon steel barstock; forged rods; cold finished steel bars; 
circular, hot formed or extruded hot rolled stainless steel; cold 
formed stainless steel bars; circular bars or rods of stainless steel 
barstock; steel angled shapes and sections to be used in valve bodies; 
unmachined stainless steel flanges; empty sample cylinders for 
compressed gases or liquids; self-tapping screws of various sizes for 
valve assemblies; nuts and bolts; steel screws; threaded hardware for 
valves; nuts for tube support systems; lock and spring washers; 
stainless steel washers; cotter pins and retaining rings; steel and 
stainless steel non-threaded hardware; helical springs; spring kits; 
disc springs for tube supports; circular or hex brass barstock; square 
copper alloy barstock to machine fittings; brass tube plugs; brass 
sleeves; nickel alloy barstock; nickel alloy gaskets; aluminum 
barstock; lead seals for valves; titanium barstock; steel and stainless 
steel clamps; steel mountings for valve applications; brackets for 
valve applications; hydraulic motors to open and close valves; non-
linear acting air operators to open and close valves; air operator 
carbon steel mufflers and filters; air and liquid pumps; filters for 
liquids and gases; filter elements; cutting dies; drill inserts; cut-
off blade bases; grooving insert holders; pigging machines--push-on 
tool assembly; valve and regulator poppets; linear, ball or radial 
bearings to be used in pumps; bearing housings for plain shaft bearings 
to be used in pumps; ball or roller screws for gears; machine clutches 
used in fitting manufacturing machines; rubber, plastic, and steel O-
ring sets; direct current (DC) motors between 37.5 watts and 74.6 watts 
to open and close valves; DC motors between 750 watts and 14.92 
kilowatts to open and close valves; alternating current (AC) electric 
actuators to open and close valves; multiphase AC motors to open and 
close valves; power supplies or converters; welding machine weld heads; 
heater cartridges for regulators; transceivers; optical projectors used 
in valve assemblies; indicator panels for alarms; power connection and 
termination kits; limit and proximity switches; crimp terminals; 
insulated ring terminals; butt connectors; electrical controllers; USB 
power cables or cords; panel faces for valve assembly controllers; 
lasers used for valve assemblies; thermometers; flow sensors for 
measuring and checking pressure; pressure gauges; pressure gauge cable 
fittings--fill plugs and steam syphons; inspection gauges; and, 
temperature control instruments (duty rate ranges from duty-free to 
15%). The request indicates that the following components are subject 
to antidumping/countervailing duty (AD/CVD) orders if imported from 
certain countries: Carbon steel barstock; hot rolled stainless steel; 
stainless steel bars; stainless steel barstock; empty sample cylinders 
for compressed gases or liquids; bolts with nuts; steel screws; 
threaded hardware for valves; lock and spring washers; helical springs 
or kits; disc springs for tube supports; brass tube plugs; brass 
sleeves; brackets for valve applications; parts for hose crimping 
machines; pigging machines; push-on tool assemblies; bearing housings 
for plain shaft bearings to be used in pumps; DC motors between 37.5 
watts and 74.6 watts to open and close valves; and, heater cartridges 
for regulators. The FTZ Board's regulations (15 CFR 400.14(e)) require 
that merchandise subject to AD/CVD orders, or items which would be 
otherwise subject to suspension of liquidation under AD/CVD procedures 
if they entered U.S. customs territory, be admitted to the zone in 
privileged foreign status (19 CFR 146.41).
    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 February 21, 2018.

[[Page 1608]]

    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 website, which is accessible via www.trade.gov/ftz.
    For further information, contact Christopher Wedderburn at 
[email protected] or (202) 482-1963.

    Dated: January 8, 2018.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2018-00436 Filed 1-11-18; 8:45 am]