[Federal Register Volume 76, Number 56 (Wednesday, March 23, 2011)]
[Notices]
[Page 16379]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6882]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 22-2011]
Foreign-Trade Zone 177--Evansville, IN; Application for
Manufacturing Authority, Best Chair, Inc. d/b/a Best Home Furnishings,
(Upholstered Furniture), Ferdinand, Cannelton, and Paoli, IN
A request has been submitted to the Foreign-Trade Zones Board (the
Board) by the Ports of Indiana, grantee of FTZ 177, requesting
manufacturing authority on behalf of Best Chair, Inc. d/b/a Best Home
Furnishings (Best Home), to manufacture upholstered furniture and
related parts under FTZ procedures within FTZ 177. 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 March 17, 2011.
The Best Home facilities (815 employees) will be located within the
FTZ 177 service area at three planned sites: Site 5--at 1 Best Drive in
Ferdinand (Dubois County), Indiana; Site 6--at 4502 East State Road 66,
Cannelton (Perry County), Indiana; and, Site 7--at 1700 West Willow
Creek Road, Paoli (Orange County), Indiana (Orange County to be
included within expanded ASF service area, as proposed -- Doc. 3-2011,
76 FR 1133, 1-7-2011). The facilities are used to produce upholstered
furniture (up to 1.5 million sofas, sectionals, loveseats, chairs, and
recliners annually) and cut-and-sewn upholstery covers for the U.S.
market and export. The application proposes that Best Home utilize
foreign-origin ``micro-denier suede'' fabric to be cut and sewn into
furniture upholstery covers under FTZ procedures. The finished
upholstery covers (HTSUS 9401.90; duty free) would then be assembled
into finished sofas, sectionals, loveseats, chairs, and recliners
manufactured by Best Home at its Indiana facilities.
The proposed scope of authority under FTZ procedures would only
involve duty savings on foreign-origin, micro-denier suede fabrics
(classified under HTSUS Headings 5407, 5512, 5515, 5516, 5903, 5906,
6001, 6005, 6006; duty rate range: 2.7-17.2%) finished with a caustic
soda wash process, which the applicant indicates are not produced by
U.S. mills. The application indicates that Best Home does not seek FTZ
benefits on any of the other foreign fabrics the company uses in
production at the facilities (i.e., full duties would be paid on all
such fabrics). All other material inputs used in the proposed
manufacturing activity would be domestic status.
FTZ procedures would exempt Best Home from customs duty payments on
the foreign micro-denier suede fabric used in export production. On
micro-denier suede fabric used in production for the U.S. market, the
company could elect the finished upholstery cover (i.e., furniture
part) duty rate (free) after the fabric has been cut, sewn, and formed
into upholstery covers, at which time they are entered for consumption
from the zone. Best Home would also have the option to elect the
finished furniture duty rate (free) for the subject fabric when the
finished furniture is entered for domestic consumption. The application
indicates that the savings from FTZ procedures would help improve the
facilities' international competitiveness.
In accordance with the Board's regulations, Pierre V. 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 address below. The closing period for receipt of
comments is May 23, 2011. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period to June 6, 2011.
A copy of the application will be available for public inspection
at the Office of the Executive Secretary, Foreign-Trade Zones Board,
Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW.,
Washington, DC 20230-0002, and in the ``Reading Room'' section of the
Board's Web site, which is accessible via http://www.trade.gov/ftz.
For further information, contact Pierre V. Duy at
[email protected] or (202) 482-1378.
Dated: March 17, 2011.
Pierre V. Duy,
Acting Executive Secretary.
[FR Doc. 2011-6882 Filed 3-22-11; 8:45 am]
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