[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55690-55691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24337]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-66-2018]


Foreign-Trade Zone (FTZ) 259--International Falls, Minnesota; 
Notification of Proposed Production Activity; Digi-Key Corporation; 
(Consumer Electronics); Thief River Falls, Minnesota

    Digi-Key Corporation (Digi-Key) submitted a notification of 
proposed production activity to the FTZ Board for its facilities in 
Thief River Falls, Minnesota. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on October 31, 2018.
    The applicant indicates that it will be submitting a separate 
application for FTZ designation at the Digi-Key facilities under FTZ 
259. The facilities are used for light value-added production and 
kitting of cable connectors and small fans for electronics. Pursuant to 
15 CFR 400.14(b), FTZ activity would be limited to the specific 
foreign-status materials and components and specific finished products 
described in the submitted notification (as described below) and

[[Page 55691]]

subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt Digi-Key from customs 
duty payments on the foreign-status components used in export 
production. On its domestic sales, for the foreign-status materials/
components noted below, Digi-Key would be able to choose the duty rates 
during customs entry procedures that apply to: Floor preparation tapes; 
tape polymer resins; anti-reflective tapes; custom cable assemblies of 
light emitting diodes; velostat foam; heatshrinks; hook and loop re-
closable fasteners; radio frequency shielding gold and copper tapes; 
wire sleeves; radio frequency shielding tape aluminum foil; custom fan 
cooling assemblies; starter evaluation boards; aluminum strips; custom 
reels of electrical transformers; modular power supplies; nickel-metal 
hydride battery packs; custom reel of inductors; alkaline battery 
packs; lithium battery packs; carbon zinc battery packs; nickel cadmium 
battery packs; custom reel of radio frequency integrated circuits; 
custom speaker cables; programmed microcontrollers; custom buzzers for 
indication or alerts; custom reel of ceramic dielectric capacitors; 
custom reel of capacitors; custom reel of fixed carbon resistors; 
custom reel of resistors; custom cable of thermistors; custom cable of 
rotary non-contact sensors; custom reel of diodes for over voltage 
protection; custom reel of integrated circuits; custom cable assemblies 
for pushbutton switches; custom cable assemblies; custom reel of female 
terminal connectors and slotted PVC wire ducts for cable management; 
custom reel of zener diodes; custom reel of mosfets; custom reel of 
transistors; custom reel of LEDs and optocouplers; custom reel of 
piezoelectric crystals and programmed oscillators; programmed reel of 
integrated circuits--memories and amplifiers; custom reel of integrated 
circuits; custom reel of particle accelerators; programmed encoders; 
coaxial cables; modular cables and custom cable of female terminal 
connectors; multi-pair cables, insulated displacement custom cables, 
ribbon cable custom cables, and cable grounds; ribbon cable custom 
cables; cable fiber optics; cable flex shields; protective sleeving 
hoses; snap-on lens for light emitting diodes and brightness 
enhancement films; custom reel of pressure sensors; custom reel of 
current switch sensors, and dual lock adhesive custom assemblies (duty 
rate ranges from duty-free to 7%). Digi-Key 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 components and materials sourced from abroad include: Fan 
axials; alkaline batteries; zinc batteries; nickel cadmium batteries; 
nickel metal hydride batteries; aluminum capacitors; plug insulation 
displacement connectors, printed circuit board connector ribbons, and 
connector plugs; connector splices, connector terms, connector strain 
reliefs, cable modular coils, and cable ribbons used in custom cable 
assemblies (duty rate ranges from duty-free to 5.3%). The request 
indicates that several components will be admitted to the zone in 
privileged foreign status (19 CFR 146.41), thereby precluding inverted 
tariff benefits on such items. The request also indicates that certain 
materials/components are subject to special duties under Section 232 of 
the Trade Expansion Act of 1962 (Section 232) and Section 301 of the 
Trade Act of 1974 (Section 301), depending on the country of origin. 
The applicable Section 232 and Section 301 decisions require subject 
merchandise to be admitted to FTZs in privileged foreign status (19 CFR 
146.41).
    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 December 17, 2018.
    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 website, which is accessible via www.trade.gov/ftz.
    For further information, contact Christopher Wedderburn at 
[email protected] or (202) 482-1963.

    Dated: November 1, 2018.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2018-24337 Filed 11-6-18; 8:45 am]
BILLING CODE 3510-DS-P