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Foreign-Trade Zone 38--Spartanburg County, South Carolina; Application for Production Authority; Teijin Carbon Fibers, Inc. (Polyacrylonitrile-Based Carbon Fiber); Greenwood, South Carolina

American Government Special Collections Reference Desk

American Government Topics:  Teijin Carbon Fibers

Foreign-Trade Zone 38--Spartanburg County, South Carolina; Application for Production Authority; Teijin Carbon Fibers, Inc. (Polyacrylonitrile-Based Carbon Fiber); Greenwood, South Carolina

Andrew McGilvray
Department of Commerce
13 August 2020


[Federal Register Volume 85, Number 157 (Thursday, August 13, 2020)]
[Notices]
[Page 49359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17723]


========================================================================
Notices
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains documents other than rules 
or proposed rules that are applicable to the public. Notices of hearings 
and investigations, committee meetings, agency decisions and rulings, 
delegations of authority, filing of petitions and applications and agency 
statements of organization and functions are examples of documents 
appearing in this section.

========================================================================


Federal Register / Vol. 85, No. 157 / Thursday, August 13, 2020 / 
Notices

[[Page 49359]]



DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-52-2020]


Foreign-Trade Zone 38--Spartanburg County, South Carolina; 
Application for Production Authority; Teijin Carbon Fibers, Inc. 
(Polyacrylonitrile-Based Carbon Fiber); Greenwood, South Carolina

    An application has been submitted to the Foreign-Trade Zones (FTZ) 
Board by the South Carolina State Ports Authority, grantee of FTZ 38, 
requesting production authority on behalf of Teijin Carbon Fibers, Inc. 
(TCF), located in Greenwood, South Carolina. The application conforming 
to the requirements of the regulations of the FTZ Board (15 CFR 400.23) 
was docketed on August 6, 2020.
    The TCF facility (currently under construction, projected to have 
90 employees, 440 acres) is located within Site 35 of FTZ 38. The 
facility is used for the production of polyacrylonitrile-based carbon 
fiber. In 2019, TCF requested production authority in a notification 
proceeding (15 CFR 400.22 and 400.37). After an initial review, the 
requested production authority was approved subject to a restriction 
requiring that all foreign-status polyacrylonitrile (PAN) fiber 
admitted for production activity be re-exported (entry for U.S. 
consumption was not authorized) (see B-38-2019, 84 FR 54837, 10/11/
2019).
    If the application were approved, on its domestic sales, TCF would 
be able to choose the duty rate during custom entry procedures that 
applies to PAN carbon fiber (duty-free) for the foreign-status inputs 
noted below. TCF would be able to avoid duties on foreign-status PAN 
fiber which becomes scrap/waste. Customs duties also could possibly be 
deferred or reduced on foreign-status production equipment. The request 
indicates that the savings from FTZ procedures would help improve the 
plant's international competitiveness.
    Components and materials sourced from abroad (representing 50-60% 
of the value of the finished product) include: 12,000 tow PAN fiber 
(precursor) and 24,000 tow PAN fiber (precursor) (duty rates are 8% and 
7.5%, respectively). The request indicates that the PAN fiber is 
subject to special 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 (19 CFR 146.41).
    In accordance with the FTZ Board's regulations, Diane Finver of the 
FTZ Staff is designated examiner to evaluate and analyze the facts and 
information presented in the application and case record and to report 
findings and recommendations to the FTZ Board.
    Public comment is invited from interested parties. Submissions 
shall be addressed to the FTZ Board's Executive Secretary and sent to: 
ftz@trade.gov. The closing period for their receipt is October 13, 
2020. Rebuttal comments in response to material submitted during the 
foregoing period may be submitted during the subsequent 15-day period 
to October 27, 2020.
    A copy of the application will be available for public inspection 
in the ``Reading Room'' section of the FTZ Board's website, which is 
accessible via www.trade.gov/ftz.
    For further information, contact Diane Finver at 
Diane.Finver@trade.gov or (202) 482-1367.

    Dated: August 7, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-17723 Filed 8-12-20; 8:45 am]
BILLING CODE 3510-DS-P

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