[Federal Register Volume 85, Number 221 (Monday, November 16, 2020)]
[Notices]
[Pages 73018-73019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25197]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-68-2020]


Foreign-Trade Zone (FTZ) 279--Houma, Louisiana; Notification of 
Proposed Production Activity; Deepwater Riser Services (Offshore 
Drilling Riser Systems and Equipment), Houma, Louisiana

    Deepwater Riser Services (Deepwater Riser) submitted a notification 
of proposed production activity to the FTZ Board for its facility in 
Houma, Louisiana. The notification conforming to the requirements of 
the regulations of the FTZ Board (15 CFR 400.22) was received on 
October 22, 2020.
    The Deepwater Riser facility is located within FTZ 279. The 
facility will be used for the production of offshore drilling riser 
systems and drilling-related equipment. Pursuant to 15 CFR 400.14(b), 
FTZ activity 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 Deepwater Riser 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, Deepwater Riser would be able to 
choose the duty rates during customs entry procedures that apply to 
riser tools, drilling risers, telescopic joints, and pressure testing 
equipment (duty-free). Deepwater Riser 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: Drill riser

[[Page 73019]]

buoyancy elements; rubber components (seals; O-rings; composite 
sheets); anodes; riser tool components (elastomers; test plugs; 
cylinders); riser telescopic joint components (packers; sleeves); riser 
fins; Kevlar[supreg] straps for fins; riser joint piping end 
protectors; stainless steel fasteners (bolts and screws); carbon steel 
components (nuts; lock washers; washers); riser fins bolt tensioners; 
hydraulic pipe receptacles; stainless steel hydraulic pipe; carbon 
steel receptacles (choke and kill line; booster); riser clip 
connectors; steel pins for peripheral line pipe fittings; drilling 
riser pipe (welded carbon steel; seamless carbon steel; stainless 
steel); and, welding wire rods (duty rate ranges from duty-free to 
9.0%). The request 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 (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 December 28, 
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: November 9, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-25197 Filed 11-13-20; 8:45 am]
BILLING CODE 3510-DS-P