[Federal Register Volume 85, Number 126 (Tuesday, June 30, 2020)]
[Notices]
[Page 39164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14003]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-39-2020]


Foreign-Trade Zone (FTZ) 82--Mobile, Alabama Notification of 
Proposed Production Activity MH Wirth, Inc. (Offshore Drilling Riser 
Systems); Theodore, Alabama

    The City of Mobile, Alabama, grantee of FTZ 82, submitted a 
notification of proposed production activity to the FTZ Board on behalf 
of MH Wirth, Inc. (MH Wirth), located in Theodore, Alabama. The 
notification conforming to the requirements of the regulations of the 
FTZ Board (15 CFR 400.22) was received on June 16, 2020.
    MH Wirth already has authority to produce and repair offshore 
drilling riser systems within FTZ 82. 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 MH Wirth from customs 
duty payments on the foreign-status materials/components used in export 
production (all of expanded production). On its domestic sales, for the 
foreign-status materials/components noted below MH Wirth would be able 
to choose the duty rate during customs entry procedures that applies to 
offshore drilling riser systems (risers, telescopic joints, test 
equipment and tools) (duty free). MH Wirth 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 welded carbon/
seamless carbon/stainless steel drilling riser pipe (duty free). The 
request indicates that welded carbon steel riser pipe is subject to an 
antidumping/countervailing duty (AD/CVD) order if imported from certain 
countries. The FTZ Board's regulations (15 CFR 400.14(e)) require that 
merchandise subject to AD/CVD orders, or items which would be otherwise 
subject to suspension of liquidation under AD/CVD procedures if they 
entered U.S. customs territory, be admitted to the zone in privileged 
foreign status (19 CFR 146.41). The request also indicates that certain 
materials/components are subject to duties under Section 232 of the 
Trade Expansion Act of 1962 (Section 232) or 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.
    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 August 10, 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 Diane Finver at 
[email protected] or (202) 482-1367.

    Dated: June 22, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-14003 Filed 6-29-20; 8:45 am]
BILLING CODE 3510-DS-P