[Federal Register: November 20, 2002 (Volume 67, Number 224)]
[Notices]              
[Page 70049]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20no02-37]                        

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Order No. 1257]

Grant of Authority for Subzone Status; Kiewit Offshore Services,
Ltd. (Offshore Drilling Platforms), Ingleside, TX

    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, by an Act of Congress approved June 18, 1934, an Act ``To
provide 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,'' as amended (19 U.S.C. 81a-81u) (the FTZ Act),
the Foreign-Trade Zones Board (the Board) is authorized to grant to
qualified corporations the privilege of establishing foreign-trade
zones in or adjacent to U.S. Customs ports of entry;
    Whereas, the Board's regulations (15 CFR part 400) provide for the
establishment of special-purpose subzones when existing zone facilities
cannot serve the specific use involved, and when the activity results
in a significant public benefit and is in the public interest;
    Whereas, an application from the Port of Corpus Christi Authority,
grantee of FTZ 122, for authority to establish special-purpose subzone
status for the offshore drilling platform manufacturing facility of
Kiewit Offshore Services, Ltd., in Ingleside, Texas, was filed by the

Board on June 3, 2002, and notice inviting public comment was given in
the Federal Register (FTZ Docket 26-2002, 67 FR 40269, June 12, 2002);
and,
    Whereas, the Board adopts the findings and recommendations of the
examiner's report, and finds that the requirements of the FTZ Act and
Board's regulations would be satisfied, and that approval of the
application would be in the public interest if approval were given
subject to the standard shipyard restriction on foreign steel mill
products;
    Now, therefore, the Board hereby grants authority for subzone
status at the offshore drilling platform manufacturing facility of
Kiewit Offshore Services, Ltd. (KOS), in Ingleside, Texas (Subzone
122P), at the location described in the application, subject to the FTZ
Act and the Board's regulations, including Section 400.28, and subject
to the following special conditions:

    1. Any foreign steel mill product admitted to the subzone,
including plate, angles, shapes, channels, rolled steel stock, bars,
pipes and tubes, not incorporated into merchandise otherwise
classified, and which is used in manufacturing, shall be subject to
Customs duties in accordance with applicable law, unless the
Executive Secretary determines that the same item is not then being
produced by a domestic steel mill.
    2. In addition to the annual report, KOS shall advise the
Board's Executive Secretary (Sec.  400.28(a)(3)) as to significant
new contracts with appropriate information concerning foreign
purchases otherwise dutiable, so that the Board may consider whether
any foreign dutiable items are being imported for manufacturing in
the subzone primarily because of subzone status and whether the
Board should consider requiring Customs duties to be paid on such
items.

    Signed at Washington, DC, this 8th day of November 2002.
Faryar Shirzad,
Assistant Secretary of Commerce for Import Administration, Alternate
Chairman, Foreign-Trade Zones Board.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 02-29503 Filed 11-19-02; 8:45 am]
BILLING CODE 3510-DS-P