Federal Register / Vol. 83, No. 141 / Monday, July 23, 2018 / Notices 34825 

DEPARTMENT OF COMMERCE 

Foreign-Trade Zones Board 

[B–47–2018] 

Foreign-Trade Zone (FTZ) 64— 

Jacksonville, Florida; Notification of 

Proposed Production Activity; Bacardi 

USA, Inc. (Kitting of Alcoholic 

Beverages); Jacksonville, Florida 

Bacardi USA, Inc. (Bacardi) submitted 

a notification of proposed production 

activity to the FTZ Board for its facility 

in Jacksonville, Florida. The notification 

conforming to the requirements of the 

regulations of the FTZ Board (15 CFR 

400.22) was received on July 13, 2018. 

Bacardi already has authority solely 

for the kitting of alcoholic beverages 

into gift sets (i.e., does not involve 

authority for any type of manufacturing 

involving alcohol prohibited by the fifth 

proviso of Section 81c of the FTZ Act) 

within Subzone 64E. The current 

request would add finished products 

and foreign status components to the 

scope of authority. Pursuant to 15 CFR 

400.14(b), additional FTZ authority 

would be limited to the specific foreignstatus 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 Bacardi from customs 

duty payments on the foreign-status 

components used in export production. 

On its domestic sales, for the foreignstatus components noted below and in 

the existing scope of authority, Bacardi 

would be able to choose the duty rates 

during customs entry procedures that 

apply to gift packs of: Asti spumante 

with glasses; moscato with glasses; 

vermouth with glasses (all flavors); 

cognac with glasses; rum with glasses; 

gin with glasses; vodka with glasses (all 

flavors), and tequila with glasses (all 

flavors) (duty rate ranges from duty-free 

to 0.198/PFL). Bacardi 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 sourced from abroad 

include: Asti spumante; moscatos; 

vermouth (all flavors); cognacs; 

whiskies; rums; gins; vodka (all flavors); 

tequila (all flavors); ice molds; stemware 

drinking glasses, and lead crystal glass 

decanters (duty rate ranges from dutyfree to 28.5%). 

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 

September 4, 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: July 17, 2018. 

Elizabeth Whiteman, 

Acting Executive Secretary. 

[FR Doc. 2018–15693 Filed 7–20–18; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

Foreign-Trade Zones Board 

[B–48–2018] 

Foreign-Trade Zone (FTZ) 176— 

Rockford, Illinois; Notification of 

Proposed Production Activity; Leading 

Americas Inc. (Wire Harnesses); 

Hampshire, Illinois 

Leading Americas Inc. (Leading 

Americas) submitted a notification of 

proposed production activity to the FTZ 

Board for its facility in Hampshire, 

Illinois. The notification conforming to 

the requirements of the regulations of 

the FTZ Board (15 CFR 400.22) was 

received on July 16, 2018. 

The Leading Americas facility is 

located within Site 17 of FTZ 176. The 

facility is will be used for the 

production of wire harnesses for the 

forklift and heavy-duty construction 

equipment industries. 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 Leading Americas from 

customs duty payments on the foreignstatus components used in export 

production. On its domestic sales, for 

the foreign-status materials/components 

noted below, Leading Americas would 

be able to choose the duty rates during 

customs entry procedures that apply to 

wire harnesses (duty rate 3.5%). 

Leading America 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 electrical 

tape, electrical terminals, copper 

winding wire, electrical connectors, and 

flexible polyvinyl chloride tubes (duty 

rate ranges from duty-free to 5.8%). 

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 

September 4, 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 

Juanita Chen at juanita.chen@trade.gov 

or 202–482–1378. 

Dated: July 17, 2018. 

Elizabeth Whiteman, 

Acting Executive Secretary. 

[FR Doc. 2018–15690 Filed 7–20–18; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

Order Terminating Denial Order Issued 

on April 15, 2018, Against Zhongxing 

Telecommunications Equipment 

Corporation and ZTE Kangxun 

Telecommunications Ltd. 

In the Matter Of: Zhongxing 

Telecommunications Equipment 

Corporation, ZTE Plaza, Keji Road South, HiTech Industrial Park, Nanshan District, 

Shenzhen, China; ZTE Kangxun 

Telecommunications Ltd., 2/3 Floor, Suite A, 

Zte Communication Mansion Keji (S) Road, 

Hi-New Shenzhen, 518057 China 

On March 23, 2017, I signed an order 

(the ‘‘March 23, 2017 Order’’) approving 

the terms of the settlement agreement 

entered into in early March 2017, 

between the Bureau of Industry and 

Security, U.S. Department of Commerce 

(‘‘BIS’’), and Zhongxing 

Telecommunications Equipment 

Corporation, of Shenzhen, China (‘‘ZTE 

Corporation’’), and ZTE Kangxun 

Telecommunications Ltd., of Hi-New 

Shenzhen, China (‘‘ZTE Kangxun’’) 

(collectively, ‘‘ZTE’’) (the ‘‘March 2017 

Settlement Agreement’’), to resolve 380 

violations of the Export Administration 

Regulations (the ‘‘Regulations’’) 


amozie on DSK3GDR082PROD with NOTICES1
34826 Federal Register / Vol. 83, No. 141 / Monday, July 23, 2018 / Notices 

1The Regulations are currently codified in the 

Code of Federal Regulations at 15 CFR parts 730– 

774 (2018) (available at https://www.govinfo.gov/ 

app/collection/CFR). The Regulations issued under 

the authority of the Export Administration Act of 

1979, as amended. 50 U.S.C. 4601–4623 (Supp. III 

2015). Since August 21, 2001, the Act has been in 

lapse and the President, through Executive Order 

13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 

(2002)), which has been extended by successive 

Presidential Notices, the most recent being that of 

August 16, 2017 (82 FR 39,005 (Aug. 15, 2017)), has 

continued the Regulations in effect under the 

International Emergency Economic Powers Act (50 

U.S.C. 1701, et seq.) (2012). 

2ZTE satisfied $361,000,000 of this civil penalty 

amount through the payment made by ZTE on or 

about May 19, 2017, following issuance of the 

March 23, 2017 Order. 

admitted by ZTE and set forth in the 

Proposed Charging Letter attached to 

and incorporated in the March 2017 

Settlement Agreement and the March 

23, 2017 Order.1

On March 6, 2018, ZTE notified BIS 

that it had made false statements in 

letters it sent to BIS on November 30, 

2016 and July 20, 2017, respectively, 

regarding the discipline of 39 employees 

involved in the violations that led to 

proposed charges settled through the 

March 2017 Settlement Agreement. 

After providing notice to ZTE and an 

opportunity to respond pursuant to the 

Regulations, I issued an order on April 

15, 2018 (the ‘‘April 15, 2018 Order’’), 

activating the suspended denial of 

export privileges set forth in the March 

2017 Settlement Agreement and the 

March 23, 2017 Order. See 83 FR 17,644 

(April 23, 2018). 

On June 8, 2018, I issued a 

Superseding Order approving a 

superseding settlement agreement 

between BIS and ZTE (the ‘‘Superseding 

Settlement Agreement’’), whereby the 

parties agreed to additional and 

enhanced settlement terms and 

conditions, including, inter alia, the full 

and timely payment by ZTE of 

$1,000,000,000 to the Department of 

Commerce within 60 days of the date of 

the Superseding Order, and the full and 

timely placement of $400,000,000, 

within 90 days of the date of the 

Superseding Order, in an escrow 

account with a bank located and 

headquartered in the United States to be 

selected by ZTE and approved by BIS. 

The $400,000,000 escrow amount is the 

suspended portion of the 

$1,761,000,000 civil penalty imposed 

pursuant to the Superseding Settlement 

Agreement and the Superseding Order.2

The Superseding Order also provided, 

as agreed to by the parties, that BIS 

would terminate the denial of export 

privileges set forth in the April 15, 2018 

Order and remove ZTE from the Denied 

Persons List upon ZTE’s full and timely 

payment of the $1,000,000,000 

referenced above and compliance with 

the escrow requirements relating to the 

$400,000,000 suspended portion of the 

civil penalty. 

ZTE has made full and timely 

payment of the $1,000,000,000 and has 

complied with the escrow requirements 

relating to the $400,000,000 suspended 

portion of the civil penalty. Therefore, 

BIS is hereby terminating the April 15, 

2018 Order, and BIS will remove ZTE 

from the Denied Persons List. 

This Order does not modify any 

provision of the Superseding Order or 

the Superseding Settlement Agreement. 

Under the terms of the Superseding 

Settlement Agreement and Superseding 

Order, if ZTE does not fully and timely 

comply with all other probationary 

conditions set forth in the Superseding 

Settlement Agreement and Superseding 

Order during the ten-year probationary 

period, the $400,000,000 suspended 

portion of the BIS civil penalty may 

immediately become due and owing in 

full or in part, at BIS’s discretion, and 

the suspended denial order may be 

modified or revoked by BIS and a denial 

order including a ten-year denial period 

activated against ZTE from the date that 

it is determined that ZTE has failed to 

comply. 

This Order is effective immediately 

and shall be served on ZTE and shall be 

published in the Federal Register. 

Issued this day of July 13, 2018. 

Richard R. Majauskas, 

Acting Assistant Secretary of Commerce for 

Export Enforcement. 

[FR Doc. 2018–15633 Filed 7–20–18; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

Notice of Partially Closed Meeting: 

Materials Processing Equipment 

Technical Advisory Committee 

The Materials Processing Equipment 

Technical Advisory Committee 

(MPETAC) will meet on August 7, 2018, 

9:00 a.m., Room 3884, in the Herbert C. 

Hoover Building, 14th Street between 

Pennsylvania and Constitution 

Avenues, NW, Washington, DC. The 

Committee advises the Office of the 

Assistant Secretary for Export 

Administration with respect to technical 

questions that affect the level of export 

controls applicable to materials 

processing equipment and related 

technology. 

Agenda 

Open Session 

1. Opening remarks and 

introductions. 

2. Discussions on results from last, 

and proposals from last Wassenaar 

meeting. 

3. Report on proposed and recently 

issued changes to the Export 

Administration Regulations. 

4. TAC Membership. 

5. Proposed Cyber Rule circulated 

6/12/18. 

6. TAC Meeting Attendance. 

7. Coordinate TAC Project—Draft 

Announcement. 

8. Industry 4.0 and New 

Technologies. 

Closed Session 

9. Discussion of matters determined to 

be exempt from the provisions relating 

to public meetings found in 5 U.S.C. 

app. 2 §§ 10(a)(1) and 10(a)(3). 

The open session will be accessible 

via teleconference to 20 participants on 

a first come, first serve basis. To join the 

conference, submit inquiries to Ms. 

Joanna Lewis at Joanna.Lewis@

bis.doc.gov, no later than July 31, 2018. 

A limited number of seats will be 

available for the public session. 

Reservations are not accepted. To the 

extent that time permits, members of the 

public may present oral statements to 

the Committee. The public may submit 

written statements at any time before or 

after the meeting. However, to facilitate 

the distribution of public presentation 

materials to the Committee members, 

the Committee suggests that presenters 

forward the public presentation 

materials prior to the meeting to Ms. 

Lewis via email. 

The Assistant Secretary for 

Administration, with the concurrence of 

the delegate of the General Counsel, 

formally determined on February 13, 

2018, pursuant to Section 10(d) of the 

Federal Advisory Committee Act, as 

amended (5 U.S.C. app. 2 § 10(d)), that 

the portion of the meeting dealing with 

matters the premature disclosure of 

which would be likely to frustrate 

significantly implementation of a 

proposed agency action as described in 

5 U.S.C. 552b(c)(9)(B) shall be exempt 

from the provisions relating to public 

meetings found in 5 U.S.C. app. 2 

§§ 10(a)(1) and 10(a)(3). The remaining 

portions of the meeting will be open to 

the public. For more information, call 

Joanna Lewis at (202) 482–6440. 

Joanna Lewis, 

Committee Liaison Officer. 

[FR Doc. 2018–15675 Filed 7–20–18; 8:45 am] 

BILLING CODE 3510–JT–P 


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