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Foreign-Trade Zone (FTZ) 203--Moses Lake, Washington, Proposed Revision to Production Authority, SGL Automotive Carbon Fibers, LLC, (Carbon Fiber), Moses Lake, Washington

American Government Special Collections Reference Desk

American Government Topics:  SGL Automotive Carbon Fibers

Foreign-Trade Zone (FTZ) 203--Moses Lake, Washington, Proposed Revision to Production Authority, SGL Automotive Carbon Fibers, LLC, (Carbon Fiber), Moses Lake, Washington

Andrew McGilvray
Department of Commerce
17 April 2017


[Federal Register Volume 82, Number 72 (Monday, April 17, 2017)]
[Notices]
[Page 18105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07705]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-23-2017]


Foreign-Trade Zone (FTZ) 203--Moses Lake, Washington, Proposed 
Revision to Production Authority, SGL Automotive Carbon Fibers, LLC, 
(Carbon Fiber), Moses Lake, Washington

    SGL Automotive Carbon Fibers, LLC (SGLACF), operator of FTZ 203--
Site 3, submitted a notification that proposes a revision to its 
existing production authority at its facility located in Moses Lake, 
Washington. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on March 30, 
2017.
    SGLACF previously requested and received FTZ Board approval for 
authority to produce carbon fiber from foreign-status polyacrylonitrile 
(PAN) fiber for export only within Site 3 of FTZ 203 (see FTZ Board 
Order 1889, 78 FR 16247, 3/14/2013). Under that existing authority, 
SGLACF must export all carbon fiber made from foreign-status PAN fiber. 
In the current request, SGLACF proposes to replace the export-only 
limitation pertaining to carbon fiber produced from foreign-status PAN 
fiber with a requirement for the company to admit all foreign-status 
PAN fiber (duty rate 7.5%) in privileged foreign (PF) status (19 CFR 
146.41).
    SGLACF's notification indicates the following: Production under FTZ 
procedures with the proposed PF status requirement for admission of 
foreign-status PAN fiber could exempt the company from customs duty 
payments on foreign-status PAN fiber used in export production. For 
SGLACF's domestic sales of carbon fiber, PF status would not allow the 
company to elect the carbon fiber duty rate (free) on the value of 
foreign-status PAN fiber used to produce the carbon fiber, thereby 
precluding inverted tariff savings. In addition, at the time of customs 
entry for each shipment of carbon fiber to the U.S. market, the company 
would apply the PAN fiber duty rate (7.5%) on an estimated value of PAN 
fiber contained in scrap resulting from the production process (based 
on the actual percentage of scrap from the preceding year's 
production). SGLACF's scrap rate was about 1% in 2016. The company is 
seeking these changes to its FTZ authority for ``logistical 
recordkeeping purposes.''
    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 30, 2017.
    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.
    For further information, contact Diane Finver at 
Diane.Finver@trade.gov or (202) 482-1367.

    Dated: April 11, 2017.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2017-07705 Filed 4-14-17; 8:45 am]
 BILLING CODE 3510-DS-P

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