[Federal Register Volume 85, Number 150 (Tuesday, August 4, 2020)]
[Notices]
[Page 47165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16888]


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 DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-49-2020]


Foreign-Trade Zone (FTZ) 183--Austin, Texas; Notification of 
Proposed Production Activity; Flextronics America, LLC (Automated Data 
Processing Machines); Austin, Texas

    Flextronics America, LLC (Flextronics) submitted a notification of 
proposed production activity to the FTZ Board for its facilities in 
Austin, Texas. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on July 24, 
2020.
    Flextronics already has authority to produce automated data 
processing machines within Subzone 183C. The current request would add 
a finished product and foreign status components to the scope of 
authority. Pursuant to 15 CFR 400.14(b), FTZ activity would be limited 
to the specific foreign-status materials/components and specific 
finished product described in the submitted notification (as described 
below) and subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt Flextronics from 
customs duty payments on the foreign-status materials/components used 
in export production (estimated 90 percent of production). On its 
domestic sales, for the foreign-status materials/components noted below 
and in the existing scope of authority, Flextronics would be able to 
choose the duty rates during customs entry procedures that apply to 
desktop computers (duty-free). Flextronics 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 plastic 
sheets, plastic film and desktop computers (duty rate ranges from duty-
free to 6.5%). The request indicates that plastic sheets and plastic 
film are subject to an antidumping/countervailing duty (AD/CVD) order 
if imported from certain countries. The FTZ Board's regulations (15 CFR 
400.14(e)) require that merchandise subject to AD/CVD orders, or items 
which would be otherwise subject to suspension of liquidation under AD/
CVD procedures if they entered U.S. customs territory, be admitted to 
the zone in privileged foreign status (19 CFR 146.41). The request also 
indicates that certain materials/components are subject to duties under 
Section 301 of the Trade Act of 1974 (Section 301), depending on the 
country of origin. The applicable Section 301 decisions require subject 
merchandise to be admitted to FTZs in privileged foreign status.
    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 September 14, 
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 Christopher Wedderburn at 
[email protected] or (202) 482-1963.

    Dated: July 29, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-16888 Filed 8-3-20; 8:45 am]
BILLING CODE 3510-DS-P