2018-24935. Reorganization of Foreign-Trade Zone 9 Under Alternative Site Framework; Honolulu, Hawaii

Pursuant to its authority under the Foreign-Trade Zones Act of June 18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board (the Board) adopts the following Order:

Whereas, the Foreign-Trade Zones (FTZ) Act provides for “. . . the establishment . . . of foreign-trade zones in ports of entry of the United States, to expedite and encourage foreign commerce, and for other purposes,” and authorizes the Foreign-Trade Zones Board to grant to qualified corporations the privilege of establishing foreign-trade zones in or adjacent to U.S. Customs and Border Protection ports of entry;

Whereas, the Board adopted the alternative site framework (ASF) (15 CFR Sec. 400.2(c)) as an option for the establishment or reorganization of zones;

Whereas, the State of Hawaii, grantee of Foreign-Trade Zone 9, submitted an application to the Board (FTZ Docket B-40-2018, docketed June 18, 2018) for authority to reorganize under the ASF with a service area of the City and County of Honolulu, County of Hawaii, County of Kauai, and County of Maui, Hawaii, in and adjacent to the Hilo and Kona (Hawaii), Kahului and Kihei (Maui), Honolulu (Oahu) and Nawiliwili-Port Allen (Kauai) U.S. Customs and Border Protection ports of entry, FTZ 9's existing Sites 2, 3, 4, 5 and 9 would be categorized as magnet sites and existing Sites 1, 6, 7 and 8 would be categorized as usage-driven sites;

Whereas, notice inviting public comment was given in the Federal Register (83 FR 29541-29542, June 25, 2018) and the application has been processed pursuant to the FTZ Act and the Board's regulations; and,

Whereas, the Board adopts the findings and recommendations of the examiner's report, and finds that the requirements of the FTZ Act and the Board's regulations are satisfied;

Now, therefore, the Board hereby orders:

The application to reorganize FTZ 9 under the ASF is approved, subject to the FTZ Act and the Board's regulations, including Section 400.13, to the Board's standard 2,000-acre activation limit for the zone, to an ASF sunset provision for magnet sites that would terminate authority for Sites 2, 3, 4 and 9 if not activated within five years from the month of approval and to an ASF sunset provision for usage-driven sites that would terminate authority for Sites 1, 6, 7 and 8 if no foreign-status merchandise is admitted to the sites for a bona fide customs purpose within three years from the month of approval.

Dated: November 8, 2018.

Gary Taverman,

Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance, Alternate Chairman, Foreign-Trade Zones Board.