[Federal Register Volume 82, Number 152 (Wednesday, August 9, 2017)]
[Notices]
[Pages 37191-37192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16794]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-48-2017]


Foreign-Trade Zone (FTZ) 230--Piedmont Triad Area, North 
Carolina; Notification of Proposed Production Activity; Klaussner Home 
Furnishings (Upholstered Furniture); Asheboro and Candor, North 
Carolina

    Klaussner Home Furnishings (Klaussner) submitted a notification of 
proposed production activity to the FTZ Board for its facilities in 
Asheboro and Candor, North Carolina within Subzone 230D. The 
notification conforming to the requirements of the regulations of the 
FTZ Board (15 CFR 400.22) was received on July 24, 2017.
    Klaussner 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 Board Order 1745 (76 FR 11426, March 2, 2011) and 
Doc. B-1-2016 (81 FR 37570, June 10, 2016)).
    The current request would add foreign status materials/components 
to the scope of authority. Pursuant to 15 CFR 400.14(b), additional FTZ 
authority would be limited to the specific foreign-status materials/
components described in the submitted notification (as described below) 
and subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt Klaussner from customs 
duty payments on the foreign-status materials/components used in export 
production. On its domestic sales, for the foreign-status materials/
components noted below, Klaussner would be able to choose the duty 
rates during customs entry procedures that apply to: upholstered seats 
(duty-free). Klaussner would be able to avoid duty on foreign-status 
components which become scrap/waste. Customs duties also could possibly 
be deferred or reduced on foreign-status production equipment.
    The materials/components sourced from abroad include: Spring 
actuators; motors exceeding 74.6 watts but not exceeding 735 watts; AC/
DC adapters having a power handling capacity of 1 kVA; transformers; 
lithium battery packs; handsets with USB; and, cables (duty rate ranges 
from free to 4%). The request indicates that lithium battery packs will 
be admitted to the zone in privileged foreign status (19 CFR 146.41), 
thereby precluding inverted tariff benefits on such items.
    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 September 18, 2017.
    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

[[Page 37192]]

[email protected] or (202) 482-0473.

    Dated: August 3, 2017.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2017-16794 Filed 8-8-17; 8:45 am]
 BILLING CODE 3510-DS-P