[Federal Register Volume 76, Number 249 (Wednesday, December 28, 2011)]
[Notices]
[Pages 81475-81476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-33298]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[A32b-3-2011]


Foreign-Trade Zone 45--Portland, OR

    Expansion of Manufacturing Authority;
    Epson Portland Inc.

[[Page 81476]]

    (Inkjet Ink Manufacturing),
    Hillsboro, OR
    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Portland, grantee of FTZ 45, requesting 
authority to expand the scope of manufacturing authority approved 
within Subzone 45F, on behalf of Epson Portland, Inc. (EPI), in 
Hillsboro, Oregon. 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 22, 2011.
    Subzone 45F was approved by the Board in 2005 at the EPI plant 
(16.6 acres) located at 3950 NW Aloclek Place, Hillsboro, Oregon (Board 
Order 1406, 70 FR 55106, 9/20/2005). Activity at the facility (450 
employees) includes manufacturing (injection molding, assembly, 
finishing), warehousing and distribution of inkjet printer cartridges.
    The current request, which is being processed under Section 
400.32(b)(1) of the Board's regulations, involves the use of privileged 
foreign (PF) status (19 CFR 146.41) inputs in manufacturing of ink for 
inkjet printer cartridges. Current production capacity is 9,000 barrels 
(210 kg per barrel) of ink per year. The finished product would be 
either inkjet ink (duty rate--1.8%) or inkjet printer cartridges (duty-
free). New material inputs sourced from abroad (representing 75% of the 
value of the finished inkjet ink) include potassium hydroxide, 
surfactants, 1,2 hexanediol, Tri-isoproanolamine, solvents, glycerin, 
triethylene glycol monobutyl ether, triethylene glycol, adipic acid, 
emulsifiers, disodium salt dihydrate, printing ink colorants (black, 
cyan, brown, orange, violet, red green, magenta and other), de-foamers, 
solublizers, and biocides (duty rates range from duty-free to 6.5%).
    This request for restricted FTZ authority would allow EPI to 
realize certain administrative efficiencies by allowing the admission 
of its foreign materials for inkjet ink manufacturing in zone status. 
FTZ procedures could also exempt EPI from customs duty payments on the 
additional PF status materials used in export production. The company 
anticipates that some 55 percent of the plant's shipments will be 
exported, either as finished inkjet ink or in inkjet cartridges. EPI 
would be able to defer duties on the PF status materials used in 
production of inkjet ink or inkjet cartridges for its domestic sales. 
EPI would also be exempt from duty payments on foreign materials that 
become scrap during the production process. FTZ designation would 
further allow EPI to realize logistical benefits through the use of 
weekly customs entry procedures. Customs duties also could possibly be 
deferred or reduced on foreign status production equipment.
    Section 400.32(b)(1)(iii) of the FTZ Board's regulations (15 CFR 
part 400) allows the Assistant Secretary for Import Administration to 
act for the Board in making decisions on new manufacturing authority 
when the zone benefits sought do not involve the election of non-
privileged foreign status on items involving inverted tariffs. In 
accordance with the Board's regulations, Diane Finver 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 to the Executive Secretary.
    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 their receipt is 
January 27, 2012. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to February 13, 2012.
    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.
    It should be noted that the applicant has concurrently requested an 
expansion of EPI's scope of authority to include manufacturing of 
inkjet ink involving foreign-sourced inputs that would be admitted to 
the subzone under nonprivileged foreign (NPF) status (19 CFR 146.42). 
The request to elect NPF status for expanded authority would be 
docketed separately and would be processed as a distinct proceeding. 
Any party wishing to submit comments for consideration regarding the 
request for NPF status for expanded authority would need to submit such 
comments pursuant to the separate notice that would be published for 
that request.
    For further information, contact Diane Finver at 
[email protected] or (202) 482-1367.

    Dated: December 22, 2011.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2011-33298 Filed 12-27-11; 8:45 am]
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