[Federal Register Volume 83, Number 172 (Wednesday, September 5, 2018)]
[Notices]
[Page 45094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19207]



[[Page 45094]]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-54-2018]


Foreign-Trade Zone (FTZ) 75--Phoenix, Arizona; Notification of 
Proposed Production Activity; Microchip Technology, Inc. (Semiconductor 
Devices and Related Products); Chandler and Tempe, Arizona

    Microchip Technology, Inc. (Microchip) submitted a notification of 
proposed production activity to the FTZ Board for its facilities in 
Chandler and Tempe, Arizona. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on August 28, 2018.
    Microchip already has authority to produce semiconductor devices 
and related products within Subzone 75H. The current request would add 
foreign status materials/components to the scope of authority. Pursuant 
to 15 CFR 400.14(b), additional FTZ authority would be limited to the 
specific foreign-status materials/components described in the submitted 
notification (as described below) and subsequently authorized by the 
FTZ Board.
    Production under FTZ procedures could exempt Microchip from customs 
duty payments on the foreign-status materials/components used in export 
production. On its domestic sales, for the foreign-status materials/
components noted below, Microchip would be able to choose the duty 
rates during customs entry procedures that apply to: Field programmable 
microcontrollers; application-specific processors; related memory 
products; and, application development tools (duty rate ranges from 
duty-free to 3%). Microchip 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 materials/components sourced from abroad include: In-circuit 
debuggers; rubber caps; evaporative air coolers; antennas; plastic 
boxes, cases, crates, stoppers, lids and caps; memory modules--not 
incorporating a cathode ray tube; brushless DC electric motors; power 
supply, output < 50 watts; static converters; transformers; relay 
contactors; lamp-holder plugs; lamp sockets; electrical equipment for 
switching of electrical circuits; servo drive boards (for test floor 
probers); infrared lamps; printed circuit assemblies; coaxial cables; 
and, electrical conductors with fitted connections (duty rate ranges 
from duty-free to 5.3%). The request indicates that certain materials/
components are 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 decision requires 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 October 15, 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 Elizabeth Whiteman at 
<a href="/cdn-cgi/l/email-protection#d693babfacb7b4b3a2bef881bebfa2b3bbb7b896a2a4b7b2b3f8b1b9a0"><span class="__cf_email__" data-cfemail="dc99b0b5a6bdbeb9a8b4f28bb4b5a8b9b1bdb29ca8aebdb8b9f2bbb3aa">[email protected]</span></a> or (202) 482-0473.

    Dated: August 29, 2018.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2018-19207 Filed 9-4-18; 8:45 am]
 BILLING CODE 3510-DS-P


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