[Federal Register Volume 78, Number 114 (Thursday, June 13, 2013)]
[Notices]
[Pages 35603-35604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-14046]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-58-2013]


Foreign-Trade Zone 83--Huntsville, Alabama; Application for 
Production Authority; Toray Carbon Fibers America, Inc.; 
(Polyacrylonitrile Fiber/Carbon Fiber Production), Decatur, Alabama

    An application has been submitted to the Foreign-Trade Zones Board 
by the Huntsville-Madison County Airport Authority, grantee of FTZ 83, 
requesting production authority on behalf of Toray Carbon Fibers 
America, Inc. (Toray), located in Decatur, Alabama. The application 
conforming to the requirements of the regulations of the FTZ Board (15 
CFR 400.22) was received on May 30, 2013.
    The Toray facility (233 employees) is located at 2030 Alabama 20, 
Decatur, Alabama. A separate application for subzone status at the 
Toray facility is planned and will be processed under Section 400.31 of 
the FTZ Board's regulations. The facility is used for the production of 
polyacrylonitrile (PAN)-based carbon fiber, and PAN fiber, the primary 
material input for the company's carbon fiber. The facility will 
produce carbon fiber from both its own domestically-produced PAN and 
from foreign-sourced PAN.
    Production under FTZ procedures could exempt Toray from customs 
duty payments on the foreign materials used in export production. The 
company anticipates that some 15 to 20 percent of the plant's carbon 
fiber shipments will be exported, and some 5 to 10 percent of its PAN 
fiber production will be exported. On its domestic sales, Toray would 
be able to choose the duty rates during customs entry procedures that 
apply to its finished carbon fiber (duty free) for the foreign inputs 
noted below. (The PAN fiber produced at the plant has higher duty rates 
than any of its foreign-sourced components.) Toray would also be exempt 
from duty payments on any foreign-origin materials that become scrap or 
waste during production. Customs duties also could possibly be deferred 
or reduced on foreign status production equipment.
    Components and materials sourced from abroad (representing 70-75% 
of the value of the finished carbon fiber made from foreign-sourced 
PAN, and less than 1% of the value of carbon fiber made from 
domestically-produced PAN) include PAN fiber (duty rates, 7.5%--24,000 
tow and 8%--12,000 tow), and sizing agents, spinning oils, solvents and 
spools/bobbins (duty rates range from 3.7-6.5%).
    The request indicates that the savings from FTZ procedures would 
help improve the plant's international competitiveness.
    In accordance with the FTZ 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 and recommendations to the Board.
    Public comment is invited from interested parties. Submissions 
shall be addressed to the FTZ Board's Executive Secretary at the 
address below. The closing period for their receipt is August 12, 2013. 
Rebuttal comments in response to material submitted during the 
foregoing period may be submitted during the subsequent 15-day period 
to August 27, 2013.
    A copy of the application 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 
FTZ Board's Web site, which is accessible via www.trade.gov/ftz.

[[Page 35604]]


FOR FURTHER INFORMATION CONTACT: Diane Finver at [email protected] 
or (202) 482-1367.

    Dated: June 6, 2013.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2013-14046 Filed 6-12-13; 8:45 am]
BILLING CODE 3510-DS-P