Klaussner Upholstered Furniture FTZ Approved

On November 28, 2017, the Foreign Trade Zone Board published in the Federal Register (82 FR 56211) Foreign-Trade Zone (FTZ) 230--Piedmont Triad Area, North Carolina; Authorization of Production Activity Klaussner Home Furnishings (Upholstered Furniture) Asheboro and Candor, North Carolina.

On July 24, 2017, Klaussner Home Furnishings submitted a notification of proposed production activity to the FTZ Board for its facility within Subzone 230D, in Asheboro and Candor, North Carolina.

The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (82 FR 37191-37192, August 9, 2017).

On November 21, 2017, the applicant was notified of the FTZ Board's decision that no further review of the activity is warranted at this time. The production activity described in the notification was authorized, subject to the FTZ Act and the FTZ Board's regulations, including Section 400.14, and further subject to a restriction requiring that lithium ion batteries be admitted to the subzone in privileged foreign status (19 CFR 146.41) or domestic status (19 CFR 146.43).

This is the latest of three FTZ filings from Klaussner. Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service read more at www.agathonassociates.com/textile-pri/ftz/2017-48-B.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Upholstered Furniture FTZs Reapproved

On October 20, 2016, the Foreign Trade Zone Board published in the Federal Register (81 FR 72565) Foreign-Trade Zone (FTZ) 158—Vicksburg/Jackson, Mississippi; Authorization of Production Activity; Bauhaus Furniture Group, LLC; H.M. Richards Company, Inc.; Lane Home Furniture; Morgan Fabrics Corporation; (Upholstered Furniture); Tupelo, Mississippi, Area.

On June 17, 2016, the Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 158, submitted a notification of proposed production activity to the FTZ Board on behalf of Bauhaus Furniture Group, LLC, H.M. Richards Company, Inc., Lane Home Furniture, and Morgan Fabrics Corporation within FTZ 158 in the greater Tupelo, Mississippi, area.

The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (81 FR 42648, June 30, 2016). The FTZ Board has determined that no further review of the activity is warranted at this time. The production activity described in the notification is authorized, subject to the FTZ Act and the Board's regulations, including Section 400.14. The activity also remains subject to the conditions of B-29-2013, B-21-2013, B-28-2013 and Board Order 1877.

On October 20, 2016, the Foreign Trade Zone Board published in the Federal Register (81 FR 72566) Foreign-Trade Zone (FTZ) 158—Vicksburg/Jackson, Mississippi; Authorization of Production Activity; Southern Motion, Inc.; (Upholstered Furniture) Pontotoc and Baldwyn, Mississippi

On June 17, 2016, the Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 158, submitted a notification of proposed production activity to the FTZ Board on behalf of Southern Motion, Inc., within Subzone 158G, in Pontotoc and Baldwyn, Mississippi.

The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (81 FR 42649-42650, June 30, 2016). The FTZ Board has determined that no further review of the activity is warranted at this time. The production activity described in the notification is authorized, subject to the FTZ Act and the Board's regulations, including Section 400.14. The activity also remains subject to the restrictions and conditions established under Docket B-45-2014.

Max Home, LLC (Upholstered Furniture) FTZ Approved, Subject to Limits

On August 23, 2016 the Foreign Trade Zone Board published in the Federal Register Foreign-Trade Zone (FTZ) 158—Vicksburg/Jackson, Mississippi; Authorization of Limited Production Activity; Max Home, LLC (Upholstered Furniture); Iuka and Fulton, Mississippi.

On March 17, 2016, the Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 158, submitted a notification of proposed production activity to the FTZ Board on behalf of Max Home, LLC, within Subzone 158F, in Iuka and Fulton, Mississippi.

The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (81 FR 20617-20618, April 8, 2016). The FTZ Board has determined that further review of part of the proposed activity is warranted at this time. The production activity described in the notification, including indefinite extension of production authority, is authorized on a limited basis, subject to the FTZ Act and the Board's regulations, including Section 400.14, and further subject to a restriction requiring that foreign status upholstery leather (HTSUS 4107.11, 4107.92 and 4107.99) be admitted to the subzone in privileged foreign status (19 CFR 146.41). The activity otherwise remains subject to the restrictions and conditions established under Board Order 1744.

When you operate under Foreign Trade Zone procedures, your company is treated (for purposes of customs duties) like it’s located outside the United States. That can mean that U.S. import duties don’t have to be paid on imported components coming to your factory. If your finished product is ultimately shipped to the U.S. market, you may have the option of paying the finished product duty rate rather than the component duty rate. (Many finished products have lower duty rates – or are duty-free – than their components.) And if you re-export the finished product, you don’t ever pay duties on the component materials. There are other potential savings, too, like avoiding duties on imported materials that become scrap, and possible administrative savings and efficiencies.

What are the benefits?

• Duty Exemption. No duties on re-exports compared to duty drawback which is a refund of duty paid when the product is later exported.
• Duty Deferral. Customs duties and federal excise tax deferred on imports.
• Inverted Tariff. In situations where zone manufacturing results in a finished product that has a lower duty rate than the rates on foreign inputs (inverted tariff), the finished products may be entered at the duty rate that applies to its condition as it leaves the zone — subject to public interest considerations.
• Logistical Benefits. Companies using Foreign Trade Zone procedures may have access to streamlined customs procedures (e.g. “weekly entry” or “direct delivery”).
• Other Benefits. Foreign goods and domestic goods held for export are exempt from state/local inventory taxes. Foreign Trade Zone status may also make a site eligible for state/local benefits which are unrelated to the Foreign Trade Zone Act.

Examples of successful Foreign Trade Zone implementation:

Claremont Flock, a textile company in Leominster, Massachusetts, imports textile fiber called “tow” and processes it into another form of textile fiber called “flock.” Claremont was paying 7.5% duty on their imports of tow. We helped Claremont qualify for Foreign Trade Zone procedures. Now they import tow without paying the duty, turn it into flock, and when the flock leaves the factory it is subject to the rate of duty applicable to flock, which is zero. Claremont said in a newspaper article that this will save them $250,000 per year.

Millipore Corporation located in Jaffrey, New Hampshire, manufacturers filters containing the imported material polyvinylidene fluoride. Utilizing Foreign Trade Zone procedures they avoid the 6.5% import duty on polyvinylidene fluoride. On its domestic shipment and exports to NAFTA markets, the company is entitled to elect the duty rate that applies to finished filters, (0 %) and thus save the company significant amounts of money.

Questions? We Can Help

David Trumbull, Agathon Associates, has over twenty years of experience assisting U.S. manufacturing companies to save money through informed use of the U.S. Customs regulations. He has worked with companies to file Foreign Trade Zone applications. David has also testified as an expert witness at the Foreign Trade Zone Board in Washington, DC. He is a Licensed Customs Broker (Lic. No. 30179) and was, from 2007 to 2013, an official advisor on manufacturing trade policy to the administrations of presidents George W. Bush and Barack Obama.

Glenn Page, New England Global Advisors, spent over 30 years with U.S. Customs and Border Protection, (CBP). While assigned to the Portsmouth, NH office of CBP he managed oversight for U.S. Customs of Foreign Trade Zone 81, which included Millipore Corporation and Westinghouse Electric.

Glenn and David recently worked together with Claremont Flock in obtaining and utilizing Foreign Trade Zone procedures.

Glenn can be reached at 603-957-8247 or glenn@neglobaladvisors.com

David can be reached at 617-237-6008 or david@agathonassociates.com

Upholstered Furniture Company Okay'd for Foreign Trade Zone

On June 10, 2016, the Foreign Trade Zone Board published in the Federal Register (81 FR 37570) Subzone 230D; Authorization of Limited Production Activity; Klaussner Furniture Industries, Inc. (Upholstered Furniture); Asheboro and Candor, North Carolina.

On January 5, 2016, Klaussner Furniture Industries, Inc., operator of Subzone 230D, submitted a notification of proposed production activity to the Foreign Trade-Zones (FTZ) Board for its facilities within Subzone 230D, in Asheboro and Candor, North Carolina.

KFI has enjoyed authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis. Board Order 1745 authorized the production of upholstered furniture (sofas, sleep sofas, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (5.79 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process (i.e., authorized fabrics). All foreign upholstery fabrics other than micro-denier suede finished with a hot caustic soda solution process (i.e., unauthorized fabrics) used in KFI's production within Subzone 230D are subject to full customs duties.

The request approved today extends KFI's existing FTZ authority indefinitely (with no increase in the company's annual quantitative limit of 5.79 million square yards) and adds foreign-status leather and certain polyurethane-type fabrics to the scope of authority. KFI also requested that the authority under Board Order 1745 be revised by modifying Condition #2 to allow KFI to admit unauthorized fabrics to Subzone 230D in privileged foreign status (19 CFR 146.41), which would preclude any change in customs classification through transformation under FTZ procedures. Pursuant to 15 CFR 400.14(b), additional FTZ authority would be limited to the specific foreign-status materials and components and specific finished products described in the submitted notification (as described below) and subsequently authorized by the FTZ Board.

Production under FTZ procedures exempts KFI from customs duty payments on the foreign-status fabrics used in export production. On its domestic sales, KFI would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the authorized fabrics and the additional fabrics. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

Upholstery fabric maker STI and thread manufacturer American & Efird supported KFI's application.

Max Home Files for Extension of FTZ for Upholstery

On April 8, 2016 the Foreign Trade Zone Board published in the Federal Register (81 FR 20617) Notification of Proposed Production Activity; Max Home, LLC; Subzone 158F (Upholstered Furniture); Iuka and Fulton, Mississippi.

The Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 158, submitted a notification of proposed production activity to the FTZ Board on behalf of Max Home, LLC (Max Home), for its facilities in Iuka and Fulton, Mississippi. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on March 17, 2016.

Max Home previously had authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see Board Order 1744, 76 FR 11425, March 2, 2011). Board Order 1744 authorized the production of upholstered furniture (chairs, seats, sofas, sleep sofas, and sectionals) for a five-year period, with a scope of authority that only provided FTZ savings on a limited quantity (2.23 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process (i.e., authorized fabrics). All foreign upholstery fabrics other than micro-denier suede finished with a hot caustic soda solution process (i.e., unauthorized fabrics) used in Max Home's production within Subzone 158F were subject to full customs duties.

The current request seeks to renew Max Home's previously approved FTZ authority indefinitely (with no increase in the company's annual quantitative limit of 2.23 million square yards) and to add foreign-status leather and certain polyurethane-type fabrics to the scope of authority. Pursuant to 15 CFR 400.14(b), additional FTZ authority would be limited to the specific foreign-status materials and 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 Max Home from customs duty payments on the foreign-status fabrics used in export production. On its domestic sales, Max Home would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the previously authorized fabrics and the additional fabrics (indicated below). Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

Authority to admit foreign-status fabrics to Subzone 158F would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process (classified within HTSUS Headings 5407, 5512, 5515, 5516, 5801, and 5903), polyurethane fabrics backed with ground leather (5903.20.2500), wet coagulation process 100 percent polyurethane coated fabrics (5903.20.2500), and upholstery leather (Heading 4107), as detailed in the notification (duty rate ranges from free to 14.9%).

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is May 18, 2016.

A copy of the notification will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230-0002, and in the ``Reading Room'' section of the FTZ Board's Web site, which is accessible via www.trade.gov/ftz.

Upholstery Fabric FTZ Application Filed

On January 20, 2016 the Foreign Trade Zone Board published in the Federal Register (81 FR 3100) Notification of Proposed Production Activity; Klaussner Furniture Industries, Inc.; Subzone 230D; (Upholstered Furniture); Asheboro and Candor, North Carolina.

Klaussner Furniture Industries, Inc. (KFI), operator of Subzone 230D, submitted a notification of proposed production activity to the FTZ Board for its facilities in Asheboro and Candor, North Carolina. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on January 5, 2016.

KFI currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see Board Order 1745, 76 FR 11426, March 2, 2011). Board Order 1745 authorized the production of upholstered furniture (sofas, sleep sofas, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (5.79 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process (i.e., authorized fabrics). All foreign upholstery fabrics other than micro-denier suede finished with a hot caustic soda solution process (i.e., unauthorized fabrics) used in KFI's production within Subzone 230D are subject to full customs duties.

The current request seeks to extend KFI's existing FTZ authority indefinitely (with no increase in the company's annual quantitative limit of 5.79 million square yards) and to add foreign-status leather and certain polyurethane-type fabrics to the scope of authority. KFI has also requested that the authority under Board Order 1745 be revised by modifying Condition #2 to allow KFI to admit unauthorized fabrics to Subzone 230D in privileged foreign status (19 CFR 146.41), which would preclude any change in customs classification through transformation under FTZ procedures. Pursuant to 15 CFR 400.14(b), additional FTZ authority would be limited to the specific foreign-status materials and 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 KFI from customs duty payments on the foreign-status fabrics used in export production. On its domestic sales, KFI would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the authorized fabrics and the additional fabrics (indicated below). Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

Authority to admit imported fabrics to Subzone 230D in non-privileged foreign status (19 CFR 146.42)--under which the fabrics' customs classification could change through transformation under FTZ procedures--would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process (classified within HTSUS Headings 5407, 5512, 5515, 5516, 5801, 5903, 6001, 6005, and 6006), polyurethane fabrics backed with ground leather (5903.20.2500), upholstery leather (Heading 4107), and wet coagulation process, 100 percent polyurethane coated fabrics (5903.20.2500), as detailed in the notification (duty rate ranges from free to 17.2%).

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is February 29, 2016.

Mississippi Furniture Manufacturer Granted Duty Free Foreign Trade Zone for Upholstery Fabric

On October 28, 2014, the Foreign Trade Zone Board published in the Federal Register (79 FR 64167) Authorization of Production Activity, Foreign-Trade Subzone 158G, Southern Motion, Inc. (Upholstered Furniture), Pontotoc and Baldwyn, MS

On June 20, 2014, the Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 158, submitted a notification of proposed production activity to the Foreign-Trade Zones (FTZ) Board on behalf of Southern Motion, Inc., within Subzone 158G, in Pontotoc and Baldwyn, Mississippi.

The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (79 FR 37281-37282, 7-1-2014). The FTZ Board has determined that no further review of the activity is warranted at this time. The production activity described in the notification is authorized, subject to the FTZ Act and the FTZ Board's regulations, including Section 400.14, and the following restrictions and conditions:

1. The annual volume of foreign micro-denier suede upholstery fabric finished with a caustic soda solution that may be admitted to the subzone under nonprivileged foreign status (19 CFR 146.42) is limited to 6.0 million square yards.

2. Southern Motion, Inc., must admit all foreign upholstery fabrics other than micro-denier suede upholstery fabrics finished with a caustic soda solution to the subzone under domestic (duty-paid) status (19 CFR 146.43).

3. Southern Motion, Inc., shall submit supplemental annual report data and information for the purpose of monitoring by the FTZ Staff.

4. The authority for Southern Motion, Inc., shall remain in effect for a period of five years from the date of approval by the FTZ Board.

Furniture Company Okay'd for FTZ Subzone

On October 3, 2014, the Foreign Trade Zone Board published in the Federal Register (79 FR 59740) Approval of Subzone Status; Southern Motion, Inc.; Pontotoc and Baldwyn, Mississippi.

The subzone (62.5 acres total) would consists of the following sites: Site 1 (50 acres, 2 parcels)--Plant #1 located at 298 Henry Southern Drive and Plant #2 located at 195 Henry Southern Drive in Pontotoc (Pontotoc County); and, Site 2 (12.5 acres)--Plant #3 located at 309 Robert M. Coggins Jr. Drive in Baldwyn (Prentiss County). A notification of proposed production activity relating to micro-denier suede upholstery fabric at the facilities has been docketed and is being processed separately (Docket No. B-45-2014).

Mississippi Furniture Company Files for Foreign Trade Zone for Micro-Denier Suede Fabric

Production under Foreign Trade Zone ("FTZ") procedures could exempt the manufacturer, Southern Motion, Inc., from customs duty payments on the foreign micro-denier suede upholstery fabric used in export production. On its domestic sales, SMI would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the micro-denier suede upholstery fabric described below. Customs duties also could possibly be deferred or reduced on foreign status production equipment.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service may read more by CLICKING HERE. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Reminder: Comments Due June 16th in Response to Best Chair Upholstery FTZ Application

As Agathon Associates reported May 20th, Best Chair has submitted a request that would allow them to import duty-free certain foreign micro-denier suede upholstery fabrics finished with hot caustic soda and certain polyurethane upholstery fabrics. Comments are due a week from today, Monday, June 16th.

Best Chair Seeks Expansion of FTZ Authority for Upholstery Fabrics, Cites Benefit to U.S. Fabric Makers

Best Chair has submitted a request that would allow them to import duty-free certain foreign micro-denier suede upholstery fabrics finished with hot caustic soda and certain polyurethane upholstery fabrics. In its filing Best Chair states:

While upholstered furniture coverings of micro-denier suede fabrics have continued to maintain their popularity within the retail consumer base of Best Chair’s customers, the company’s ability to maintain an economically viable in-house cut-and-sew operation has enabled it to serve as a valuable customer for several domestic upholstery fabric mills. These mills are operated by vendors such as Culp, Dicey, STI, Sunbury, Valdese, and Abercrombie. Consumption of domestically produced fabrics has increased by 21.3% since the beginning of the second quarter when zone activity began to increase. In terms of serving the public interest, the continuation of FTZ production authority on behalf of Best Chair is readily evident.

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary. The closing period for their receipt is June 16, 2014.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service may view addition information by CLICKING HERE and entering their ID and password. If you need your ID and password sent to you, email David Trumbull at david@agathonassociates.com.

Best Chair Files FTZ Application for Micro-Denier Suede Fabric

The Ports of Indiana, grantee of FTZ 177, submitted a notification of proposed production activity on behalf of Best Chair, Inc. d/b/a Best Home Furnishings (Best Home), located in Ferdinand, Cannelton, and Paoli, Indiana. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on April 22, 2014.

The Best Home facilities are located within Sites 5, 6, and 7 of FTZ 177 and currently have authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see, Board Order 1807, 77 FR 6536, 2-8-2012). Board Order 1807 authorized the production of upholstered furniture (sofas, sectionals, loveseats, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (2.28 million square yards/year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All foreign upholstery fabric other than micro-denier suede fabric used in Best Home's production within FTZ 177 is subject to full customs duties.

The current request would add certain foreign status micro-denier suede fabrics finished with hot caustic soda and certain polyurethane fabrics to the scope of authority. Pursuant to 15 CFR 400.14(b), additional FTZ authority would be limited to the specific foreign-status materials 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 Best Home from customs duty payments on the additional fabrics used in export production. On its domestic sales, Best Home would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the additional fabrics (indicated below). Customs duties also could possibly be deferred or reduced on foreign status production equipment.

The expanded scope of authority under FTZ procedures would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process (classified within HTSUS Headings 5407, 5512, 5515, 5516, 5801, and 5903), polyurethane fabrics backed with ground leather (5903.20.2500), and wet coagulation process, 100 percent polyurethane coated fabrics (5903.20.2500), as detailed in the notification (duty rate ranges from 7.5 to 14.9%). All other foreign upholstery fabrics used in the production activity would continue to be admitted to the zone in domestic (duty paid) status.

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is June 16, 2014.

Mississippi Furniture Manufacturers Get Extension of FTZ for Micro-Denier Suede

Today the Foreign Trade Zone ("FTZ") Board announced that three Mississippi furniture manufacturers, Bauhaus USA, Inc., H.M. Richards, Inc., Lane Furniture Industries, Inc., which in December 2008 had been granted the right to import, duty-free, a limited quantity of micro-denier suede fabric, for a period of five years, have now had that privilege extended indefinitely.

In the case of Bauhaus USA, Inc. the annual volume of foreign micro-denier suede upholstery fabric finished with a caustic soda solution that may be admitted to duty-free is limited to 3.5 million square yards.

In the case of H.M. Richards, Inc., the annual volume of foreign micro-denier suede upholstery fabric finished with a caustic soda solution that may be admitted duty-free is limited to 6.5 million square yards.

In the Lane Furniture Industries, Inc., the annual volume of foreign micro-denier suede upholstery fabric finished with a caustic soda solution that may be admitted duty-free is limited to 6.5 million square yards.

Three Mississippi Companies with Limited FTZ Approval for Micro-Denier Suede Upholstery Fabrics Seek Extension of Approval for Indefinite Time

The U.S. Department of Commerce Foreign Trade Zone Boards has announced that the Greater Mississippi Foreign-Trade Zone, Inc. has submitted notifications of proposed production activity on behalf of Bauhaus USA, Inc. ("Bauhaus"), H.M. Richards, Inc. ("HMRI"), and Lane Furniture Industries, Inc. ("Lane"), located in Belden, Guntown, Saltillo, and Verona, Mississippi.

The Bauhaus facility is located within Site 16 of FTZ 158 and currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see, Board Order 1600, 74 FR 262-263, 1-5-2009). Board Order 1600 authorized the production of upholstered furniture (sofa, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (3.5 million square yards/year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All foreign upholstery fabric other than micro-denier suede fabric used in Bauhaus' production within FTZ 158 is subject to full customs duties.

The HMRI facility is located within Site 15 of FTZ 158 and currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see, Board Order 1599, 74 FR 263, 1-5-2009). Board Order 1599 authorized the production of upholstered furniture (sofa, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (3.6 million square yards/year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All foreign upholstery fabric other than micro-denier suede fabric used in HMRI's production within FTZ 158 is subject to full customs duties.

The Lane facilities are located within Sites 14, 16, and 17 of FTZ 158 and currently have authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see, Board Order 1598, 74 FR 263, 1-5-2009). Board Order 1598 authorized the production of upholstered furniture (sofa, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (6.5 million square yards/year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All foreign upholstery fabric other than micro-denier suede fabric used in Lane's production within FTZ 158 is subject to full customs duties.

The current requests seek to extend the companies' current FTZ authority indefinitely.

The proposed scope of authority under FTZ procedures would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process, as detailed in the notification (duty rate ranges from 2.7 to 17.2%). All other material inputs used in the production activity would be in domestic (duty paid) status.

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary and received by May 20, 2013.

Approval for Manufacturing Authority, Foreign-Trade Zone 158, Morgan Fabrics Corporation (Upholstered Furniture Covering Sets), Verona, Mississippi

On January 28, 2013, the Foreign Trade Zone Board published (78 FR 5773) notice that the application for manufacturing authority under zone procedures within Foreign Trade Zone ("FTZ") 158 on behalf of Morgan Fabrics Corporation ("MFC"), as described in the application and Federal Register notice, is approved, subject to the FTZ Act and the Board's regulations, including Section 400.13, and further subject to the following restrictions and conditions:

1. The annual quantitative volume of foreign micro-denier suede upholstery fabric finished with a hot caustic soda solution that MFC may admit to FTZ 158 under nonprivileged foreign status (19 CFR 146.42) is limited to 3.0 million square yards.
2. MFC must admit all foreign-origin upholstery fabrics other than micro-denier suede fabric finished with a hot caustic soda solution to the zone under domestic (duty-paid) status (19 CFR 146.43).
3. For the purpose of monitoring by the FTZ Staff, MFC shall submit additional operating information to supplement its annual report data.
4. The authority for MFC shall remain in effect for a period of five years from the date of approval by the FTZ Board.