[Federal Register Volume 85, Number 49 (Thursday, March 12, 2020)]
[Notices]
[Pages 14460-14461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05072]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-13-2020]


Foreign-Trade Zone (FTZ) 124--Gramercy, Louisiana, Notification 
of Proposed Production Activity, Offshore Energy Services, Inc. (Line 
Pipe With Weld-On Housings and Connectors), Broussard, Louisiana

    The Port of South Louisiana, grantee of FTZ 124, submitted a 
notification of proposed production activity to the FTZ Board on behalf 
of Offshore Energy Services, Inc. (Offshore Energy), located in 
Broussard, Louisiana. The notification conforming to the requirements 
of the regulations of the FTZ Board (15 CFR 400.22) was received on 
March 5, 2020.
    Offshore Energy already has authority to produce API specification 
5L line pipe with welded on pin and box connections within FTZ 124. The 
current request would add two finished products and three 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 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 Offshore Energy 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 and in the existing scope of 
authority, Offshore Energy would be able to choose the duty

[[Page 14461]]

rates during customs entry procedures that apply to API specification 
5L steel line pipe with steel weld-on high pressure wellhead housings 
and pin or box connectors, and to API specification 5L steel line pipe 
with steel weld-on low pressure wellhead housings and pin or box 
connectors (2.9%). Offshore Energy 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 steel weld-on 
pin and box threaded connectors, steel weld-on high pressure wellhead 
housings, and steel weld-on low pressure wellhead housings, for use in 
oil and gas drilling operations (duty rate ranges from duty-free to 
2.9%). The request 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 (19 CFR 146.41).
    Public comment is invited from interested parties. Submissions 
shall be addressed to the Board's Executive Secretary and sent to: 
[email protected]. The closing period for their receipt is April 21, 2020.
    A copy of the notification will be available for public inspection 
in the ``Reading Room'' section of the Board's website, which is 
accessible via www.trade.gov/ftz.
    For further information, contact Juanita Chen at 
[email protected] or 202-482-1378.

    Dated: March 6, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-05072 Filed 3-11-20; 8:45 am]
 BILLING CODE 3510-DS-P