Flemish Master Weavers Back with Another FTZ Application for Rug Manufacturing

On August 8, 2022 the Foreign Trade Zone Board published in the Federal Register (87 FR 48149) Foreign-Trade Zone 186 -- Waterville, Maine; Notification of Proposed Production Activity, Flemish Master Weavers (Machine-Made Woven Area Rugs), Sanford, Maine

In 2016, FMW received limited FTZ authority to produce machine-made woven area rugs using polypropylene and polyester yarns in privileged foreign (PF) status (19 CFR 146.41), which precludes inverted tariff benefits on those inputs (see 81 FR 51850, August 5, 2016).

In 2017, FMW requested authority to admit continuous filament polypropylene (CFPP) yarn in nonprivileged foreign (NPF) status (19 CFR 146.42) (B-28-2017, 82 FR 26434, 6/7/2017). That request was approved subject to the following restrictions: (1) the annual quantitative volume of CFPP yarn that FMW may admit into Subzone 186A under NPF status was limited to 3 million kilograms; and, (2) approval was limited to an initial period of five years, subject to extension upon review (Board Order 2071, 83 FR 54709, 10/31/2018).

The pending notification requests to remove the restriction requiring admission in PF status for CFPP yarn--to which FMW's operation would otherwise be subject beginning on October 25, 2023 (upon expiration of the time-limited authority approved in Board Order 2071).