[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)]
[Notices]
[Page 59358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25518]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-75-2018]


Foreign-Trade Zone (FTZ) 87--Lake Charles, Louisiana, 
Notification of Proposed Production Activity, Driftwood LNG, LLC 
(Liquified Natural Gas Processing), Sulphur, Louisiana

    The Lake Charles Harbor and Terminal District, grantee of FTZ 87, 
submitted a notification of proposed production activity to the FTZ 
Board on behalf of Driftwood LNG, LLC (Driftwood LNG), located in 
Sulphur, Louisiana. The notification conforming to the requirements of 
the regulations of the FTZ Board (15 CFR 400.22) was received on 
November 16, 2018.
    The Driftwood LNG facility is located within Subzone 87G. The 
facility (currently proposed for construction) will be used for 
liquified natural gas processing. Pursuant to 15 CFR 400.14(b), FTZ 
activity would be limited to the specific foreign-status material and 
specific finished products described in the submitted notification and 
subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt Driftwood LNG from 
customs duty payments on the foreign-status gaseous natural gas (duty-
free) used in export production. On its domestic sales, for the 
foreign-status gaseous natural gas, Driftwood LNG would be able to 
choose the duty rates during customs entry procedures that apply to: 
Liquified natural gas and stabilized condensate by-product (duty rates 
are duty-free and 10 cents/barrel, respectively). Driftwood LNG would 
be able to avoid duty on the foreign-status material which becomes 
scrap/waste. Customs duties also could possibly be deferred or reduced 
on foreign-status production equipment.
    The request indicates that gaseous natural gas is subject to 
special duties under Section 301 of the Trade Act of 1974 (Section 
301), depending on the country of origin. The applicable 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 January 2, 2019.
    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 Diane Finver at 
[email protected] or (202) 482-1367.

    Dated: November 16, 2018.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2018-25518 Filed 11-21-18; 8:45 am]
BILLING CODE 3510-DS-P