[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Notices]
[Pages 42649-42650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15630]


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 DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-42-2016]


Foreign-Trade Zone 158--Tupelo, Mississippi; Notification of 
Proposed Production Activity; Southern Motion, Inc.; Subzone 158G 
(Upholstered Furniture); Pontotoc and Baldwyn, Mississippi

    The Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 
158, submitted a notification of proposed production activity to the 
FTZ Board on behalf of Southern Motion, Inc. (SMI), for its facilities 
in Pontotoc and Baldwyn, Mississippi. The notification conforming to 
the requirements of the regulations of the FTZ Board (15 CFR 400.22) 
was received on June 17, 2016.
    SMI currently has authority to conduct cut-and-sew activity using 
certain foreign micro-denier suede upholstery fabrics to produce 
upholstered furniture and related parts (upholstery cover sets) on a 
restricted basis (see B-45-2014, 79 FR 64167, October 28, 2014). SMI's 
authority allows for the production of upholstered furniture (chairs, 
seats, sofas, sleep sofas, and sectionals) for a five-year period, with 
a scope of authority that only provided FTZ savings on a limited 
quantity (6.0 million square yards per year) of foreign origin, micro-
denier suede upholstery fabric finished with a hot caustic soda 
solution process (i.e., authorized fabrics). All foreign upholstery 
fabrics other than micro-denier suede finished with a hot caustic soda 
solution process (i.e., unauthorized fabrics) used in SMI's production 
within Subzone 158G are subject to full customs duties.
    The current request seeks to add new foreign-status components and 
certain polyurethane-type fabrics to the scope of authority. Pursuant 
to 15 CFR 400.14(b), additional FTZ authority 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 SMI from customs duty 
payments on the foreign-status fabrics and components used in export 
production. On its domestic sales, SMI would be able to apply the 
finished upholstery cover set (i.e., furniture part) or finished 
furniture duty rate (free) for the previously authorized fabrics and 
the additional fabrics and components (indicated below). Customs duties 
also

[[Page 42650]]

could possibly be deferred or reduced on foreign-status production 
equipment.
    The components sourced from abroad include: Linear actuators and 
motors; transformers; power adaptors; handset controllers; power 
cables; and, Y-cables (duty rate ranges from 1.6% to 2.8%). The 
expanded scope of authority to admit foreign-status fabrics to Subzone 
158G would only involve polyurethane fabrics backed with ground leather 
(5903.20.2500) and wet coagulation process 100 percent polyurethane 
coated fabrics (5903.20.2500), as detailed in the notification (duty 
rate: 7.5%). All other foreign, unauthorized upholstery fabrics used in 
the production activity would continue to be admitted to the zone in 
domestic (duty paid) status.
    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 9, 2016.
    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 
FTZ Board's Web site, which is accessible via www.trade.gov/ftz.
    For further information, contact Elizabeth Whiteman at 
[email protected] or (202) 482-0473.

    Dated: June 20, 2016.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2016-15630 Filed 6-29-16; 8:45 am]
 BILLING CODE 3510-DS-P