[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Notices]
[Page 42648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15631]


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 DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-43-2016]


Foreign-Trade Zone 158--Tupelo, Mississippi; Notification of 
Proposed Production Activity; Bauhaus Furniture Group, LLC; H.M. 
Richards Company, Inc.; Lane Home Furniture; Morgan Fabrics Corporation 
(Upholstered Furniture)

    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 Bauhaus Furniture Group, LLC (Bauhaus), H.M. 
Richards Company, Inc. (HMRI), Lane Home Furniture (Lane), and Morgan 
Fabrics Corporation (Morgan) within FTZ 158 in the greater Tupelo, 
Mississippi, area. The notification conforming to the requirements of 
the regulations of the FTZ Board (15 CFR 400.22) was received on June 
17, 2016.
    Bauhaus, HMRI, Lane, and Morgan currently have 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-29-2013, B-21-
2013, B-28-2013, 78 FR 49254-49255, August 13, 2013; and, Board Order 
1877, 78 FR 5773, January 28, 2013). The companies' authority allows 
for the production of upholstered furniture (chairs, seats, sofas, 
sleep sofas, and sectionals) with scopes of authority that only provide 
FTZ savings on a limited quantity 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 Bauhaus, HMRI, Lane, and Morgan's 
production within FTZ 158 are subject to full customs duties.
    The current request seeks to add 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 Bauhaus, HMRI, Lane, 
and Morgan from customs duty payments on the foreign-status fabrics 
used in export production. On domestic sales, Bauhaus, HMRI, Lane, and 
Morgan 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 (indicated 
below). Customs duties also could possibly be deferred or reduced on 
foreign-status production equipment.
    The expanded scope of authority to admit foreign-status fabrics to 
FTZ 158 in nonprivileged foreign status (19 CFR 146.42) 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 companies' 
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 23, 2016.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2016-15631 Filed 6-29-16; 8:45 am]
 BILLING CODE 3510-DS-P