[Federal Register Volume 84, Number 75 (Thursday, April 18, 2019)]
[Notices]
[Page 16245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07800]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-25-2019]


Foreign-Trade Zone (FTZ) 80--San Antonio, Texas; Notification of 
Proposed Production Activity, CGT U.S., Ltd. (Polyvinyl Chloride (PVC) 
Coated Upholstery Fabric Cover Stock); New Braunfels, Texas

    CGT U.S., Ltd. (CGT) submitted a notification of proposed 
production activity to the FTZ Board for its facility in New Braunfels, 
Texas. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on April 10, 
2019.
    CGT already has authority to produce PVC coated upholstery fabric 
cover stock within Subzone 80E. 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 CGT 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, CGT would be able to choose the duty rate 
during customs entry procedures that applies to PVC coated upholstery 
fabric cover stock (duty free). CGT 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 polyester knit 
woven dyed fabric and PVC plasticizer (duty rates are 14.9% and 6.5%, 
respectively). The request indicates that the polyester knit woven dyed 
fabric 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 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.
    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 May 28, 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: April 15, 2019.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2019-07800 Filed 4-17-19; 8:45 am]
BILLING CODE 3510-DS-P