[Federal Register Volume 85, Number 175 (Wednesday, September 9, 2020)]
[Notices]
[Page 55636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19905]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-56-2020]


Foreign-Trade Zone (FTZ) 90--Syracuse, New York; Notification of 
Proposed Production Activity; Xylem Water Systems USA LLC (Centrifugal 
and Submersible Pumps), Auburn, New York

    Xylem Water Systems USA LLC (Xylem Water Systems) submitted a 
notification of proposed production activity to the FTZ Board for its 
facilities in Auburn, New York. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on August 11, 2020.
    Xylem Water Systems already has authority to produce centrifugal 
and submersible pumps and related controllers within Subzone 90D 
(originally approved as Subzone 37D). The current request would add 
finished products and foreign status components to the scope of 
authority. Pursuant to 15 CFR 400.14(b), additional FTZ authority would 
be limited to the specific foreign-status 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 Xylem Water Systems 
from customs duty payments on the foreign-status components used in 
export production. On its domestic sales, for the foreign-status 
components noted below and in the existing scope of authority, Xylem 
Water Systems would be able to choose the duty rates during customs 
entry procedures that apply to: Booster packages (which include 
centrifugal pumps with affixed variable frequency drives that are 
stationed on a base); basin packages (which include compact, corrosion 
resistant, 6 gallon, cube-shaped basins with built-in threaded inlets, 
vent and discharge connections, sump pumps (submersible) and cord 
grommets for power cord sealing); transmission cables; and, motor parts 
(including motor fan covers, terminal box kits, conduit boxes and motor 
plug-in elements) (duty rate ranges from duty-free to 3%). Xylem Water 
Systems 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 sourced from abroad include transmission cables and 
motor parts (including motor fan covers, terminal box kits, conduit 
boxes and motor plug-in elements) (duty rate ranges from duty-free to 
3%). The request indicates that certain components are subject to 
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 October 19, 
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 Christopher Wedderburn at 
[email protected] or (202) 482-1963.

    Dated: September 2, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-19905 Filed 9-8-20; 8:45 am]
BILLING CODE 3510-DS-P