[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Notices]
[Page 57627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27956]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 47-99]
Foreign-Trade Zone 207--Richmond International Airport, Virginia;
Application for Foreign-Trade Subzone Status; Alfa Laval Thermal, Inc.
(Heat Exchangers); Richmond, VA, Area
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Capital Region Airport Commission, grantee of FTZ
207, requesting special-purpose subzone status for the manufacturing
facilities (heat exchangers and parts) of the Alfa Laval Thermal, Inc.
(Alfa Laval), located at sites in the Richmond, Virginia, area. The
application was submitted pursuant to 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 October 14, 1999.
The Alfa Laval facilities are located at three sites in the
Richmond, Virginia, area (23 acres, 115,000 sq. ft. total): Site 1 (1
building/80,000 square feet on 17 acres)--headquarters and main
manufacturing facilities, located at 5400 International Trade Drive,
Richmond; Site 2 (portion of 1 building/23,000 sq. ft.)--space used for
repairs, light manufacturing, and warehousing, at 520 East Park Court,
Woodland Center, Richmond; and Site 3 (1 building/10,500 sq. ft. on 2.2
acres)--stocking and repair facility, located at 11100 Air Park Road,
Hanover Industrial Park, Ashland.
The facilities (200 employees) are used for the engineering,
manufacture, service, and distribution of Alfa Laval's heat exhanger
products, which include plate heat exchangers, brazed heat exchangers,
spiral heat exchangers, scraped surface heat exchangers, and new or
reconditioned heat exchanger parts. Some of the components used in the
manufacturing process are purchased from abroad (an estimated 38% of
finished product value), including: nuts; screws; gaskets; washers;
adhesives; stainless steel angles, shapes, and section; needle roller
bearings; and titanium sheet (duty rates on the imported items range
from 0.4% to 15.0%). The company will also use several foreign-sourced
items that are duty free. The company indicates that it will admit the
aforementioned stainless steel products to the proposed subzone in
privileged-foreign status.
Zone procedures would exempt Alfa Laval from Customs duty payments
on foreign components used in export production. FTZ procedures will
help Alfa Laval to implement a more efficient and cost-effective system
for handling Customs requirements (including reduced Customs
merchandise processing fees). On its domestic sales, Alfa Laval would
be able to choose the lower duty rate that applies to the finished
products (0.8%) for the foreign components noted above, with the above-
noted exception of stainless steel products. The company also would
benefit from duty savings on scrap and waste resulting from the
production process (Alfa Laval estimates its scrap rate as one percent
of all components and materials). FTZ status may also make a site
eligible for benefits provided under state/local programs. The
application indicates that the savings from zone procedures would help
improve the facilities' international competitiveness, and would enable
the company to shift additional production from overseas to the
Richmond-area facilities.
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 December 27, 1999. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period to January 10, 2000.
A copy of the application and the accompanying exhibits will be
available for public inspection at each of the following locations:
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, N.W.,
Washington, D.C. 20230
U.S. Department of Commerce Export Assistance Center, 400 North 8th
Street, Suite 540, Richmond, VA 23240-0026
Dated: October 14, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-27956 Filed 10-25-99; 8:45 am]
BILLING CODE 3510-DS-P
