[Federal Register Volume 63, Number 241 (Wednesday, December 16, 1998)]
[Notices]
[Pages 69261-69262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33329]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 56-98]
Foreign-Trade Zone 35--Philadelphia, PA; Application for Subzone
Status, Kvaerner Philadelphia Shipyard, Inc. (Shipbuilding)
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Philadelphia Regional Port Authority, grantee of FTZ
35, requesting special-purpose subzone status for the shipbuilding
facility of Kvaerner Philadelphia Shipyard, Inc. (KPSI), in
Philadelphia, Pennsylvania (formerly operated by the U.S. Navy). 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 December 10,
1998.
The KPSI shipyard (114 acres, up to 1,000 employees) is located on
the Delaware River in the Philadelphia Naval Business Center,
Philadelphia, Pennsylvania. Currently undergoing extensive renovation,
the facility will be
[[Page 69262]]
used for the construction, repair, and conversion of commercial vessels
for domestic and international customers. Foreign components that may
be used at the KPSI shipyard (up to 30% of total) include propulsion
units, engines and control systems, profile steel, pumps, alarm
systems, diesel generators, navigation equipment, radio communications,
rudder systems, radar apparatus, pumps, CO2 discharge
systems, propellers and shafts, winches, windlass, ships' logs, depth
sounding equipment, boilers, inert gas plants, electro-hydraulic power
racks, switchboards/panels/consoles (1998 duty rate range: free--5.7%,
ad valorem).
FTZ procedures would exempt KPSI from Customs duty payments on the
foreign components (except steel mill products) used in export
activity. On its domestic sales, the company would be able to choose
the duty rate that applies to finished oceangoing vessels (duty free)
for the foreign-origin components noted above. The manufacturing
activity conducted under FTZ procedures would be subject to the
``standard shipyard restriction'' applicable to foreign-origin steel
mill products (e.g., angles, pipe, plate), which requires that Customs
duties be paid on such items. The application indicates that the
savings from FTZ procedures would help improve the 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 February 16, 1999. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to March 1, 1999).
A copy of the application will be available for public inspection
at the following locations:
U.S. Department of Commerce, Export Assistance Center, 615 Chestnut
Street, Suite 1501, Philadelphia, PA 19106
Office of the Executive Secretary, Foreign-Trade Zones Board, Room
3716, U.S. Department of Commerce, 14th Street & Pennsylvania Avenue,
NW, Washington, DC 20230.
Dated: December 10, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-33329 Filed 12-15-98; 8:45 am]
BILLING CODE 3510-DS-P
