[Federal Register Volume 76, Number 56 (Wednesday, March 23, 2011)]
[Notices]
[Page 16379]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6882]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 22-2011]


Foreign-Trade Zone 177--Evansville, IN; Application for 
Manufacturing Authority, Best Chair, Inc. d/b/a Best Home Furnishings, 
(Upholstered Furniture), Ferdinand, Cannelton, and Paoli, IN

    A request has been submitted to the Foreign-Trade Zones Board (the 
Board) by the Ports of Indiana, grantee of FTZ 177, requesting 
manufacturing authority on behalf of Best Chair, Inc. d/b/a Best Home 
Furnishings (Best Home), to manufacture upholstered furniture and 
related parts under FTZ procedures within FTZ 177. 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 March 17, 2011.
    The Best Home facilities (815 employees) will be located within the 
FTZ 177 service area at three planned sites: Site 5--at 1 Best Drive in 
Ferdinand (Dubois County), Indiana; Site 6--at 4502 East State Road 66, 
Cannelton (Perry County), Indiana; and, Site 7--at 1700 West Willow 
Creek Road, Paoli (Orange County), Indiana (Orange County to be 
included within expanded ASF service area, as proposed -- Doc. 3-2011, 
76 FR 1133, 1-7-2011). The facilities are used to produce upholstered 
furniture (up to 1.5 million sofas, sectionals, loveseats, chairs, and 
recliners annually) and cut-and-sewn upholstery covers for the U.S. 
market and export. The application proposes that Best Home utilize 
foreign-origin ``micro-denier suede'' fabric to be cut and sewn into 
furniture upholstery covers under FTZ procedures. The finished 
upholstery covers (HTSUS 9401.90; duty free) would then be assembled 
into finished sofas, sectionals, loveseats, chairs, and recliners 
manufactured by Best Home at its Indiana facilities.
    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 Best Home does not seek FTZ 
benefits on any of the other foreign fabrics the company uses in 
production at the facilities (i.e., full duties would be paid on all 
such fabrics). All other material inputs used in the proposed 
manufacturing activity would be domestic status.
    FTZ procedures would exempt Best Home 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, the 
company could elect the finished upholstery cover (i.e., furniture 
part) duty rate (free) after the fabric has been cut, sewn, and formed 
into upholstery covers, at which time they are entered for consumption 
from the zone. Best Home 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 V. 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 address below. The closing period for receipt of 
comments is May 23, 2011. Rebuttal comments in response to material 
submitted during the foregoing period may be submitted during the 
subsequent 15-day period to June 6, 2011.
    A copy of the application will be available for public inspection 
at the Office of the Executive Secretary, Foreign-Trade Zones Board, 
Room 2111, 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 http://www.trade.gov/ftz.
    For further information, contact Pierre V. Duy at 
[email protected] or (202) 482-1378.

    Dated: March 17, 2011.
Pierre V. Duy,
Acting Executive Secretary.
[FR Doc. 2011-6882 Filed 3-22-11; 8:45 am]
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