[Federal Register Volume 86, Number 35 (Wednesday, February 24, 2021)]
[Notices]
[Pages 11222-11223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03784]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-08-2021]


Foreign-Trade Zone (FTZ) 204--Tri-Cities, Tennessee, Notification 
of Proposed Production Activity, Eastman Chemical Company (Plastics), 
Kingsport, Tennessee

    Eastman Chemical Company (Eastman Chemical) submitted a 
notification of proposed production activity to the FTZ Board for its 
planned facility in Kingsport, Tennessee. The notification conforming 
to the requirements of the regulations of the FTZ Board (15 CFR 400.22) 
was received on February 12, 2021.
    The applicant has submitted a separate application for FTZ 
designation at the company's facility under FTZ 204. The facility will 
be used for methanolysis operations and the recycling of plastics. 
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 subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt Eastman Chemical 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, Eastman Chemical would be able to choose the 
duty rates during customs entry procedures that apply to ethylene 
glycol, acetic acid, acetic anhydride, and copolyester pellets of resin 
(duty rate ranges from 1.8% to 6.5%). Eastman Chemical 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 
polyethylene terephthalate, methanol, and scrap polymers (of ethylene, 
styrene, vinyl chloride, or plastic) (duty rate ranges from duty free 
to 5.5%). The request 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 (19 CFR 146.41).
    Public comment is invited from interested parties. Submissions 
shall be addressed to the Board's Executive Secretary and sent to: 
<a href="/cdn-cgi/l/email-protection#97f1e3edd7e3e5f6f3f2b9f0f8e1"><span class="__cf_email__" data-cfemail="e482909ea49096858081ca838b92">[email protected]</span></a>. The

[[Page 11223]]

closing period for their receipt is April 5, 2021.
    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 Juanita Chen at 
<a href="/cdn-cgi/l/email-protection#99f3ecf8f7f0edf8b7faf1fcf7d9edebf8fdfcb7fef6ef"><span class="__cf_email__" data-cfemail="c3a9b6a2adaab7a2eda0aba6ad83b7b1a2a7a6eda4acb5">[email protected]</span></a> or 202-482-1378.

    Dated: February 18, 2021.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2021-03784 Filed 2-23-21; 8:45 am]
BILLING CODE 3510-DS-P


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