[Federal Register Volume 62, Number 77 (Tuesday, April 22, 1997)]
[Notices]
[Page 19546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10394]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 28-97]
Foreign-Trade Zone 66--Wilmington, NC, Application for Subzone
Status, Unifi, Inc., Plant (Polyester Partially-Oriented Yarn)
Yadkinville, NC
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the North Carolina Department of Commerce, grantee of
FTZ 66, requesting special-purpose subzone status for the polyester
yarn manufacturing plant of Unifi, Inc. (Unifi), located at 1641
Shacktown Road, Yadkinville (Yadkin County), North Carolina. The
application was submitted pursuant to the provisions of the Foreign-
Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of
the Board (15 CFR Part 400). It was formally filed on April 10, 1997.
The Unifi facility (18 acres, 329,000 sq. ft.), currently under
construction, consists of a melt monofilament spinning plant that will
produce polyester partially-oriented (POY) yarn for the U.S. market and
export. The production process involves melting polyethylene
terephthalate (PET) chips (HTSUS# 3907.60.0050, duty rate: 2.2 cents/
kg+8.2%), extruding the molten PET into monofilament partially-oriented
yarn (HTSUS# 5402.33). The application indicates that up to 30 percent
of the PET consumed in the production process could be purchased from
abroad and would be admitted pursuant to FTZ procedures under
privileged foreign status (19 CFR 146.41).
FTZ procedures would exempt Unifi from Customs duty payments on the
foreign PET used in export production (some 30% of shipments). On its
domestic sales, the company would be able to defer duty payments on the
foreign PET until the finished polyester POY yarn is entered for
consumption. Unifi is also seeking to eliminate duty payments on
certain foreign PET which, under FTZ procedures, could qualify as
accountable loss in the manufacturing process (2% loss rate). FTZ
procedures would also allow the deferral of duty payments on foreign
capital equipment until fully assembled and ready for production.
Certain foreign components of such equipment having higher individual
duty rates (4.1%) could qualify for the lower finished spinning
equipment rate (1.8%) when Customs entry is made on the equipment. The
application indicates that subzone status would help improve the Unifi
facility's international competitiveness.
In accordance with the Board's regulations, a member of the FTZ
Staff has been designated examiner to investigate the application and
report to the Board.
Public comment on the application is invited from interested
parties. Submissions (original and three copies) shall be addressed to
the Board's Executive Secretary at the address below. The closing
period for their receipt is June 23, 1997. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to July 7, 1997).
A copy of the application and the accompanying exhibits will be
available for public inspection at each of the following locations:
U.S. Department of Commerce, Export Assistance Center, 521 E. Morehead
Street, Suite 435, Charlotte, NC 28202
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue,
NW, Washington, DC 20230-0002
Dated: April 14, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-10394 Filed 4-21-97; 8:45 am]
BILLING CODE 3510-DS-P
