[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]
[Notices]
[Page 65626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23005]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-63-2016]


Foreign-Trade Zone (FTZ) 177--Evansville, Indiana; Notification 
of Proposed Production Activity; Best Chairs, Inc. d/b/a Best Home 
Furnishings (Upholstered Furniture); Ferdinand, Cannelton and Paoli, 
Indiana

    Best Chairs, Inc. d/b/a Best Home Furnishings (Best Home) submitted 
a notification of proposed production activity to the FTZ Board for its 
facilities in Ferdinand, Cannelton and Paoli, Indiana within FTZ 177. 
The notification conforming to the requirements of the regulations of 
the FTZ Board (15 CFR 400.22) was received on September 14, 2016.
    The Best Home facilities are located within Sites 5, 6, and 7 of 
FTZ 177 and currently have authority to conduct cut-and-sew activity 
using certain foreign micro-denier suede upholstery fabrics and 
polyurethane fabrics to produce upholstered furniture and related parts 
(upholstery cover sets) on a restricted basis (Board Order 1807 and 
Doc. B-35-2014). Board Order 1807 authorized the production of 
upholstered furniture (sofas, sectionals, loveseats, chairs, and 
recliners) for a five-year period, with a scope of authority that only 
provides FTZ savings on a limited quantity (2.28 million square yards 
per year) of foreign origin, micro-denier suede upholstery fabric 
finished with a hot caustic soda solution process. Doc. B-35-2014 
expanded the company's scope of authority to include certain 
polyurethane fabrics. All foreign upholstery fabrics other than micro-
denier suede finished with a hot caustic soda solution process, 
polyurethane fabrics backed with ground leather, and wet coagulation 
process, 100 percent polyurethane coated fabrics used in Best Home's 
production within FTZ 177 are subject to full customs duties.
    The current request seeks to extend Best Home's existing FTZ 
authority indefinitely (with no increase in the company's annual 
quantitative limit of 2.28 million square yards) and to add foreign-
status leather and non-textile foreign-status components to the scope 
of authority. This request also seeks to clarify certain HTSUS numbers 
that apply to the company's existing authority for micro-denier suede 
upholstery fabric finished with a hot caustic soda solution process. 
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 Best Home from customs 
duty payments on the foreign-status components used in export 
production. On its domestic sales, Best Home would be able to apply the 
finished upholstery cover set (i.e., furniture part) or finished 
furniture duty rate (free) for the authorized fabrics and additional 
components (indicated below). Customs duties also could possibly be 
deferred or reduced on foreign-status production equipment.
    The components sourced from abroad include: Micro-denier suede 
fabric finished with a hot caustic soda finishing process; upholstery 
leather; linear actuators and motors; transformers; power adaptors; 
handset controllers; power cables; and, Y-cables (duty rate ranges from 
1.6% to 17.2%). The request indicates that upholstery leather will be 
admitted to the zone in privileged foreign status (19 CFR 146.41), 
thereby precluding inverted tariff benefits on upholstery leather. All 
other foreign, unauthorized upholstery fabrics or other components 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 Board's Executive Secretary at the address 
below. The closing period for their receipt is November 2, 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 
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: September 19, 2016.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2016-23005 Filed 9-22-16; 8:45 am]
 BILLING CODE 3510-DS-P