Import Administration
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last update: September 2002 


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]