[Federal Register Volume 75, Number 114 (Tuesday, June 15, 2010)]
[Notices]
[Pages 33765-33766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14389]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 42-2010]


Foreign-Trade Zone 77--Memphis, TN, Application for Subzone, 
Delta Faucet Company (Faucets); Jackson, TN

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the City of Memphis, grantee of FTZ 77, requesting 
special-purpose subzone status for the faucet manufacturing facility of 
Delta Faucet Company (Delta), located in Jackson, Tennessee. The 
application was submitted pursuant to the provisions of the Foreign-
Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of 
the Board (15 CFR part 400). It was formally filed on June 7, 2010.
    The Delta facility (668 employees/90 acres) is located at 3441 
Ridgecrest Road Ext., Jackson (Madison County), Tennessee. The facility 
is used to manufacture, warehouse and distribute faucets and related 
products for the U.S. market and export. At full capacity the plant can 
manufacture up to nine million units annually. The manufacturing 
activity under FTZ procedures would include machining, assembly, 
joining, finishing, and testing. Components to be purchased from abroad 
(representing between 36-40% of the value of the finished faucets) 
would include: Parts of faucets, hoses, plastic sanitary ware, plastic 
bags, stoppers, lids, plastic builders' ware, handles/knobs, tubes/
pipes of rubber, o[dash]rings, seals, grommets, gaskets, labels, 
ceramic parts, fasteners, washers, springs, copper tubes and fittings, 
showerheads, aerators, spray assemblies, articles of zinc, wrenches and 
tools, and valves (duty rate range: free-9.0%). The application 
indicates that Delta would also assemble retail display cabinets with 
the following

[[Page 33766]]

inputs: parts of display cabinets, faucets, and parts of faucets (duty 
rate range: free-4.0%) for domestic distribution and export. Foreign-
origin finished products to be distributed from the facility include: 
mirrors, decorative glass vases, retail slatwalls, faucets and related 
parts, and wall lighting.
    FTZ procedures could exempt Delta from customs duty payments on the 
foreign components used in export production. The company would be 
exempt from duty payments on foreign-origin finished products that 
would be exported from the subzone. On domestic shipments, Delta would 
be able to elect the duty rates that apply to finished faucets (4.0%) 
and retail display cabinets (duty free) for the foreign inputs noted 
above. Subzone status would further allow Delta to realize logistical 
benefits through the use of weekly customs entry procedures. Customs 
duties could possibly be deferred or reduced on foreign status 
production equipment. Delta would also be exempt from duty payments on 
any foreign-origin inputs that become scrap or waste during 
manufacturing. The application indicates that the savings from FTZ 
procedures would help improve the facility's international 
competitiveness.
    In accordance with the Board's regulations, Pierre Duy of the FTZ 
Staff is designated examiner to evaluate and analyze the facts and 
information presented in the application and case record and to report 
findings and recommendations to the Board. Public comment is invited 
from interested parties. Submissions (original and 3 copies) shall be 
addressed to the Board's Executive Secretary at the following address: 
Office of the Executive Secretary, Room 2111, U.S. Department of 
Commerce, 1401 Constitution Avenue, NW., Washington, DC 20230-0002. The 
closing period for receipt of comments is August 16, 2010. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period to August 30, 
2010.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
the address listed above and in the ``Reading Room'' section of the 
Board's Web site, which is accessible via www.trade.gov/ftz. For 
further information, contact Pierre Duy at [email protected] or 
(202) 482-1378.

    Dated: June 7, 2010.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2010-14389 Filed 6-14-10; 8:45 am]
BILLING CODE P