[Federal Register Volume 85, Number 105 (Monday, June 1, 2020)]
[Notices]
[Pages 33087-33088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11708]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-32-2020]


Foreign-Trade Zone (FTZ) 277--Western Maricopa County, Arizona; 
Notification of Proposed Production Activity; Rauch North America, Inc. 
(Non-Alcoholic Beverages), Waddell, Arizona

    Rauch North America, Inc. (RNA) submitted a notification of 
proposed production activity to the FTZ Board for its facility in 
Waddell, Arizona. The notification conforming to the requirements of 
the regulations of the FTZ Board (15 CFR 400.22) was received on May 
15, 2020.
    The RNA facility is located within FTZ 277. The facility is used 
for the production of energy drinks, soft drinks and other non-
alcoholic beverages. Pursuant to 15 CFR 400.14(b), FTZ activity would 
be limited to the specific foreign-status materials/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 RNA from customs duty 
payments on the foreign-status materials/components used in export 
production (estimated at five percent of production). On its domestic 
sales, for the foreign-status materials/components noted below, RNA 
would be able to choose the duty rates during customs entry procedures 
that apply to energy drinks, soft drinks and other non-alcoholic 
beverages (duty rate--0.2 cents/liter). RNA 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: Powder mix

[[Page 33088]]

containing aspartame, acesulfame k and xanthan gum; powder mix 
containing sucralose, acesulfame k and xanthan gum; taurine crystals 
and crystalline powder; caffeine powder; liquid mixture for flavoring 
purposes containing flavor, alcohol and water; powder mix with taurine, 
caffeine and a mixture containing B vitamins; aluminum beverage cans; 
aluminum beverage can lids; aluminum beverage bottles; aluminum 
beverage bottle closures; citric acid; magnesium carbonate; foil 
(polymers of ethylene); coloring dyes: orange and blue; coloring agents 
of animal or vegetable origin: orange and purple; vitamin B2 
(riboflavin); sodium citrate; neutral cloudifier additive containing 
gum and vegetable oil; and, tannic acid (duty rate ranges from duty 
free to 10%). The request indicates that citric acid and sodium citrate 
are subject to antidumping/countervailing duty (AD/CVD) orders 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 July 13, 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 Diane Finver at 
[email protected] or (202) 482-1367.

    Dated: May 26, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-11708 Filed 5-29-20; 8:45 am]
 BILLING CODE 3510-DS-P