[Federal Register Volume 63, Number 66 (Tuesday, April 7, 1998)]
[Notices]
[Pages 16961-16962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8979]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 15-98]
Foreign-Trade Zone 92--Pascagoula, MS, Request for Manufacturing
Authority, Friede Goldman International, Inc., (Shipbuilding/Offshore
Drilling Platforms)
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by Greater Gulfport/Biloxi Foreign Trade Zone, Inc.,
grantee of FTZ 92, pursuant to Sec. 400.32(b)(1) of the Board's
regulations (15 CFR Part 400), requesting authority on behalf of Friede
Goldman International, Inc. (FGI) and its subsidiary HAM Marine, Inc.,
for the manufacture, refurbishment, and repair of ships, offshore oil
and gas drilling rigs, and other marine vessels under FTZ procedures
within FTZ 92. It was formally filed on March 27, 1998.
FGI operates an 85-acre facility (1,200 employees) within FTZ 92-
Site 5 (Greater Gulfport/Biloxi Foreign Trade Zone, Inc.) for the
manufacture, refurbishment, and repair of ships, offshore oil and gas
drilling rigs, and other marine vessels (HTSUS headings 8901, 8902,
8904, 8905, or 8906). Currently, components purchased from foreign
sources comprise 30 percent of the finished product's value, including
a semi-finished hull and superstructure. On future projects, foreign
content is expected to range from 30 to 70 percent of the finished
products' value. The duty rates on the imported components currently
range from free to 15.2 percent.
This application requests authority to allow HAM Marine to conduct
the activity under FTZ procedures, subject to the ``standard shipyard
restriction'' applicable to foreign-origin steel mill products, which
requires that full duties be paid on such items.
FTZ procedures would exempt HAM Marine from Customs duty payments
on the foreign components used in export activity (currently 100% of
shipments). On its domestic sales, the company would be able to choose
the duty rate that applies to finished oceangoing vessels (duty free)
for foreign components such as the hull and superstructure noted above.
Foreign-sourced steel mill products, such as pipe and plate, would be
subject to the full Customs duties applicable to those items. FTZ
procedures would also exempt certain merchandise from certain ad
valorem inventory taxes. The application indicates that the savings
would help improve the facility's international competitiveness.
[[Page 16962]]
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 8, 1998. Rebuttal comments in response
to material submitted during the foregoing period may be submitted
during the subsequent 15-day period (to June 22, 1998).
A copy of the application will be available for public inspection
at the following location: 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: March 30, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-8979 Filed 4-6-98; 8:45 am]
BILLING CODE 3510-DS-P
