Federal Register, Volume 83 Issue 216 (Wednesday, November 7, 2018) 
[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55690-55691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24337]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-66-2018]

Foreign-Trade Zone (FTZ) 259--International Falls, Minnesota;
Notification of Proposed Production Activity; Digi-Key Corporation;
(Consumer Electronics); Thief River Falls, Minnesota

    Digi-Key Corporation (Digi-Key) submitted a notification of
proposed production activity to the FTZ Board for its facilities in
Thief River Falls, Minnesota. The notification conforming to the
requirements of the regulations of the FTZ Board (15 CFR 400.22) was
received on October 31, 2018.
    The applicant indicates that it will be submitting a separate
application for FTZ designation at the Digi-Key facilities under FTZ
259. The facilities are used for light value-added production and
kitting of cable connectors and small fans for electronics. Pursuant to
15 CFR 400.14(b), FTZ activity would be limited to the specific
foreign-status materials and components and specific finished products
described in the submitted notification (as described below) and

[[Page 55691]]

subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt Digi-Key from customs
duty payments on the foreign-status components used in export
production. On its domestic sales, for the foreign-status materials/
components noted below, Digi-Key would be able to choose the duty rates
during customs entry procedures that apply to: Floor preparation tapes;
tape polymer resins; anti-reflective tapes; custom cable assemblies of
light emitting diodes; velostat foam; heatshrinks; hook and loop re-
closable fasteners; radio frequency shielding gold and copper tapes;
wire sleeves; radio frequency shielding tape aluminum foil; custom fan
cooling assemblies; starter evaluation boards; aluminum strips; custom
reels of electrical transformers; modular power supplies; nickel-metal
hydride battery packs; custom reel of inductors; alkaline battery
packs; lithium battery packs; carbon zinc battery packs; nickel cadmium
battery packs; custom reel of radio frequency integrated circuits;

custom speaker cables; programmed microcontrollers; custom buzzers for
indication or alerts; custom reel of ceramic dielectric capacitors;
custom reel of capacitors; custom reel of fixed carbon resistors;
custom reel of resistors; custom cable of thermistors; custom cable of
rotary non-contact sensors; custom reel of diodes for over voltage
protection; custom reel of integrated circuits; custom cable assemblies
for pushbutton switches; custom cable assemblies; custom reel of female
terminal connectors and slotted PVC wire ducts for cable management;
custom reel of zener diodes; custom reel of mosfets; custom reel of
transistors; custom reel of LEDs and optocouplers; custom reel of
piezoelectric crystals and programmed oscillators; programmed reel of
integrated circuits--memories and amplifiers; custom reel of integrated
circuits; custom reel of particle accelerators; programmed encoders;
coaxial cables; modular cables and custom cable of female terminal
connectors; multi-pair cables, insulated displacement custom cables,

ribbon cable custom cables, and cable grounds; ribbon cable custom
cables; cable fiber optics; cable flex shields; protective sleeving
hoses; snap-on lens for light emitting diodes and brightness
enhancement films; custom reel of pressure sensors; custom reel of
current switch sensors, and dual lock adhesive custom assemblies (duty
rate ranges from duty-free to 7%). Digi-Key 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 components and materials sourced from abroad include: Fan
axials; alkaline batteries; zinc batteries; nickel cadmium batteries;
nickel metal hydride batteries; aluminum capacitors; plug insulation
displacement connectors, printed circuit board connector ribbons, and
connector plugs; connector splices, connector terms, connector strain
reliefs, cable modular coils, and cable ribbons used in custom cable
assemblies (duty rate ranges from duty-free to 5.3%). The request

indicates that several components will be admitted to the zone in
privileged foreign status (19 CFR 146.41), thereby precluding inverted
tariff benefits on such items. The request also indicates that certain
materials/components are subject to special duties under Section 232 of
the Trade Expansion Act of 1962 (Section 232) and Section 301 of the
Trade Act of 1974 (Section 301), depending on the country of origin.
The applicable Section 232 and Section 301 decisions require subject
merchandise to be admitted to FTZs in privileged foreign status (19 CFR
146.41).
    Public comment is invited from interested parties. Submissions
shall be addressed to the Board's Executive Secretary at the address
below. The closing period for their receipt is December 17, 2018.
    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

Board's website, which is accessible via www.trade.gov/ftz.
    For further information, contact Christopher Wedderburn at
Chris.Wedderburn@trade.gov or (202) 482-1963.

    Dated: November 1, 2018.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2018-24337 Filed 11-6-18; 8:45 am]
BILLING CODE 3510-DS-P