[Federal Register Volume 74, Number 250 (Thursday, December 31, 2009)]
[Notices]
[Pages 69329-69330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30526]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 59-2009]


Foreign-Trade Zone 230--Greensboro, North Carolina Application 
for Subzone Klaussner Home Furnishings (Upholstered Furniture) Asheboro 
and Candor, NC

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Piedmont Triad Partnership, grantee of FTZ 230, 
requesting special-purpose subzone status for the upholstered furniture 
manufacturing facilities of Klaussner Home Furnishings (KHF) located in 
Asheboro and Candor, North Carolina. The application was submitted 
pursuant to the provisions of the Foreign-Trade Zones Act, as amended 
(19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR part 
400). It was formally filed on December 16, 2009.
    The KHF facilities (800 employees) consist of three sites: Site 1--
manufacturing plant and warehouse (77.5 acres) located at 405 Lewallen 
Road, Asheboro; Site 2--manufacturing plant and warehouse (76.4 acres) 
located at 4400 Highway 220 Business South, Asheboro; and, Site 3--
manufacturing plant (52.5 acres) located at 468 East Main Street in the 
town of Candor, North Carolina. The facilities are used to manufacture 
and distribute upholstered furniture (up to 1 million sofas, sleep 
sofas, and recliners combined annually) as well as cut and cut-and-sewn 
upholstery covering sets for the U.S. market and export. The 
application proposes that KHF utilize foreign-origin ``micro-denier 
suede'' fabric to be transformed into furniture upholstery covering 
sets under FTZ procedures. The finished upholstery covering sets (HTSUS 
9401.90.5020; duty free) would then be assembled into finished chairs, 
seats, sofas, sleep sofas, and sectionals manufactured by KHF 
facilities in North Carolina and Iowa.
    The proposed scope of authority under FTZ procedures would only 
involve duty savings on foreign-origin, micro-denier suede fabrics 
(classified under HTSUS Headings 5407, 5512, 5515, 5516, 5903, 5906, 
6001, 6005, 6006; duty rate range: 2.7-17.2%) finished with a caustic 
soda wash process, which the applicant indicates are not produced by 
U.S. mills. The application indicates that KHF does not seek FTZ 
benefits on any of the other foreign fabrics used in production at the 
facilities (i.e., full duties would be paid on all such fabrics). All 
other material inputs used in production would be domestic status.
    FTZ procedures could exempt KHF from customs duty payments on the 
foreign micro denier suede fabric used in export production. On micro-
denier suede fabric used in production for the U.S. market, KHF could 
elect the finished upholstery cover (i.e., furniture part) duty rate 
(free) after the foreign fabric has been manufactured into cut or cut-
and-sewn upholstery covering sets, at which time they are entered for 
consumption from the proposed

[[Page 69330]]

subzone. KHF would also have the option to elect the finished furniture 
duty rate (free) for the subject fabric when the finished furniture is 
entered for domestic consumption. The application indicates that the 
savings from FTZ procedures would help improve the facilities' 
international competitiveness.
    In accordance with the Board's regulations, Pierre Duy of the FTZ 
Staff is designated examiner to evaluate and analyze the facts and 
information presented in the application and case record and to report 
findings and recommendations to the Board. Public comment is invited 
from interested parties. Submissions (original and 3 copies) shall be 
addressed to the Board's Executive Secretary at the following address: 
Office of the Executive Secretary, Room 2111, U.S. Department of 
Commerce, 1401 Constitution Avenue, NW., Washington, DC 20230-0002. The 
closing period for receipt of comments is March 1, 2010. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period to March 16, 2010.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
the address listed above and in the ``Reading Room'' section of the 
Board's website, which is accessible via http://www.trade.gov/ftz. For 
further information, contact Pierre Duy at [email protected] or 
(202) 482-1378.

    Dated: December 16, 2009.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E9-30526 Filed 12-30-09; 8:45 am]
BILLING CODE 3510-DS-M