[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Notices]
[Pages 57626-57627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27958]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 49-99]
Foreign-Trade Zone 207--Richmond International Airport, Virginia;
Application for Foreign-Trade Subzone Status, Ericsson, Inc. (Cellular
Telephones, Wireless Communications Equipment, and Private Radio
Equipment), Lynchburg, VA
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 (cellular telephones, wireless communications equipment, and
private radio equipment) of Ericsson, Inc. (Ericsson), located at sites
in Lynchburg, Virginia. 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 15, 1999.
The Ericsson facilities (153 acres, 1 million sq. ft.) are located
at three sites in Lynchburg: manufacturing facility at 1 Mountain View
Road; finished goods facility at 314 Jefferson Parkway; and parts
inventory facility at 37 Millrace Drive. These facilities (3,000+
employees) are currently used for the manufacture of cellular
telephones,
[[Page 57627]]
wireless communications equipment, and private radio equipment. Some of
the components used in manufacturing these products are purchased from
abroad (comprising 50 to 60 % of parts value), including keypads, pin
connectors, amplifiers, coaxial cable, storage batteries, transformers,
switches, electric motors, clasps, loud speakers, screws, rubber parts,
filter paper, and storage battery parts (duty rates on these items
range from 1.8% to 6.6%).
Zone procedures would exempt Ericsson from Customs duty payments on
foreign components used in export production. On domestic shipments,
the company would be able to defer Customs duty payments on foreign
materials, and to choose the duty rates that apply to the finished
products (ranging from duty free to 3.4%) instead of the rates
otherwise applicable to the foreign input materials (noted above). The
company would also be exempt from duty payments on foreign merchandise
that becomes scrap/waste (scrap rate estimated at 1% of parts). FTZ
procedures will help Ericsson to implement a more cost-effective system
for handling Customs requirements (including reduced Customs
merchandise processing fees). 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.
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, DC 20230
U.S. Department of Commerce Export Assistance Center, 400 North 8th
Street, Suite 540, Richmond, VA 23240-0026
Dated: October 15, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-27958 Filed 10-25-99; 8:45 am]
BILLING CODE 3510-DS-P
