[Federal Register: November 19, 2003 (Volume 68, Number 223)]
[Notices]              
[Page 65246-65247]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19no03-43]                        

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket No. 61-2003]

Foreign-Trade Zone 77--Memphis, TN; Expansion of Manufacturing
Authority--Subzone 77A, Sharp Manufacturing Company of America
(Consumer and Business Electronics) Shelby County, TN

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the City of Memphis, Tennessee, grantee of FTZ 77,
requesting to expand the scope of manufacturing authority under zone
procedures within Subzone 77A, at the Sharp Manufacturing Company of
America facilities in Shelby County, Tennessee. It was formally filed
on November 6, 2003.
    Subzone 77A was approved by the Board in 1984 at 2 sites (107
acres) in the Memphis area (Shelby County), Tennessee, with authority
originally granted for the manufacture of television and microwave
ovens (Board Order 265, 49 FR 28589, 07/13/84), and later expanded to
include personal computers, printers, and printed circuit boards (Board
Order 653, 58 FR 47859, 09/13/93).
    Subzone 77A (600 employees, with projections to 730 by 2005) is
currently requesting to expand the scope of authority for manufacturing
activity conducted under FTZ procedures to include the assembly of
multifunction office machines and accessories (HTSUS 8471.60, 8471.70,

8471.80, 8472.90 and 8473.50, all duty-free) and photovoltaic cells and
modules (HTSUS 8541.40, duty-free), using foreign and domestic
materials. Foreign-sourced components used in the assembly of
multifunction office machines include printer engines, controller
boards, and printer parts and accessories (HTSUS 8472.90.80000,
8473.40.1000, 8473.40.8000), and would account for some 95 percent of
finished product value. Foreign-sourced components used in the assembly
of photovoltaic modules include photovoltaic cells, module frames and
interconnectors, terminal boxes, PET sheets, gaskets, tape and resins
(HTSUS 8541.40.6030, 8541.90.0000, 8536, 3920.62.0000, 4016.92, 3919,
3909), and would account for approximately 20 percent of finished
product value. Photovoltaic module components having an inverted tariff
would comprise some 5 percent of the value of the finished product.
    Zone procedures would exempt Sharp from Customs duty payments on
foreign materials used in production for export.

[[Page 65247]]

On domestic sales, the company would be able to defer Customs duty
payments on foreign materials. On domestic shipments of photovoltaic
modules, the company would be able to choose the duty rate that applies
to finished products (duty-free) instead of the rate otherwise
applicable to the foreign components (duty-free to 6.5%). In addition,
Sharp may realize logistical/procedural and other benefits from subzone
status. The application indicates that the savings from zone procedures
would help improve Sharp'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 is invited from interested parties. Submissions
(original and 3 copies) shall be addressed to the Board's Executive
Secretary at one of the following addresses:
    1. Submissions Via Express/Package Delivery Services: Foreign-
Trade-Zones Board, U.S. Department of Commerce, Franklin Court

Building--Suite 4100W, 1099 14th St. NW., Washington, DC 20005; or
    2. Submissions Via the U.S. Postal Service: Foreign-Trade-Zones
Board, U.S. Department of Commerce, FCB--Suite 4100W, 1401 Constitution
Ave. NW., Washington, DC 20230.
    The closing period for their receipt is January 20, 2004. Rebuttal
comments in response to material submitted during the foregoing period
may be submitted during the subsequent 15-day period (to December 4,
2003).
    A copy of the request will be available for public inspection at
the Office of the Foreign-Trade Zones Board's Executive Secretary at
address Number 1 listed above and at the U.S. Department of Commerce
Export Assistance Center, Buckman Hall, Suite 328, 650 East Parkway
South, Memphis, TN 38104.

    Dated: November 6, 2003.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 03-28806 Filed 11-18-03; 8:45 am]
BILLING CODE 3510-DS-P