[Federal Register: June 12, 2007 (Volume 72, Number 112)]
[Notices]              
[Page 32278-32279]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12jn07-22]                        

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 21-2007]

Foreign-Trade Zone 65 - Panama City, FL, Application for Subzone
Status, Eastern Shipbuilding Group, Inc., (Shipbuilding)

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Port of Panama City, Florida, grantee of FTZ 65,
requesting special-purpose subzone status for the shipbuilding
facilities of Eastern Shipbuilding Group (ESG), in Panama City,
Florida. 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
June 5, 2007.
    The proposed subzone would comprise ESG's facilities at two sites
in Bay County, Florida: Site 1 ``Nelson Street Shipyard'' (27.2 acres/4
parcels/82,500 sq.ft.) - 2200 Nelson Street, Panama City, Florida; and,
Site 2 ``Allanton Shipyard'' (142.5 acres, 67,300 sq.ft.) - 13300
Allanton Road, Panama City, located 15 miles southeast of Site 1. The
ESG facilities (580 employees) are used for the construction,
fabrication, and repair of commercial and military oceangoing vessels
for domestic and international customers. Foreign components that

[[Page 32279]]

may be used at the ESG facilities (representing 25 - 40[percnt] of
material value) may include plastic tubes/pipes/hoses/fittings/floor
coverings/seals/gaskets/o-rings, rubber mats/gaskets/o-rings/seals/
knobs/dampeners, carpeting (will be admitted under privileged foreign
(PF) status (19 CFR Sec.  146.41)), articles of plaster, tableware,
steel and iron pipe/tube/profiles/casings/fittings, stainless steel
pipe/tube/flanges, doors, windows, structures, tanks, drums, LNG
containers, anchors, articles of copper, couplings (of nickel,
aluminum, lead, zinc, tin), articles of chromium, flexible tubing,
marine steam turbines, engines (diesel and spark ignition) and parts,
turbojets, propellers, gas turbines and parts, pumps, compressors,
fans, air conditioners, furnaces and parts, heat exchange units,
chillers, water heaters and parts, centrifuges, filters and filtering
equipment, cranes, trash compactors, valves, bearings (items subject to
AD/CVD orders will be admitted under PF status), gears, flywheels,

clutches, parts of transmissions, generators and sets, starters, radio
transceivers and remote controllers, radar equipment, parts of
signaling equipment, electric switchgear and control panels, ignition
wiring sets, compasses, instruments and meters, navigational
instruments, thermostats, marine chronometers, furniture, and lamps
(duty rate range: free - 9.0[percnt]; 25[cent]/ea.+3.9[percnt], ad
valorem; 84[cent]/bbl).
    FTZ procedures would exempt ESG from customs duty payments on the
foreign components used in export activity. On its domestic sales, the
company would not be required to pay applicable customs duties on the
foreign components, or it would be able to elect the duty rate that
applies to finished oceangoing vessels (duty free) for the foreign
components when the vessels are processed for customs entry. 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

full customs duties be paid on such items. The application indicates
that the savings from FTZ 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 is invited from interested parties. Submissions
(original and 3 copies) shall be addressed to the Board's Executive
Secretary at the address below. The closing period for their receipt is
August 13, 2007. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period to August 27, 2007.
    A copy of the application and accompanying exhibits will be
available for public inspection at each of the following locations:
Office of the Area Port Director, U.S. Customs and Border Protection,
2831 Talleyrand Avenue, Jacksonville, FL 32206; and, the Office of the
Executive Secretary, Foreign-Trade Zones Board, Room 2111, U.S.

Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC
20230-0002.
    For further information, contact Pierre Duy, examiner, at
pierre_duy@ita.doc.gov, or (202) 482-1378.

    Dated: June 5, 2007.
Pierre V. Duy,
Acting Executive Secretary.
[FR Doc. E7-11320 Filed 6-11-07; 8:45 am]
BILLING CODE 3510-DS-S