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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 57-96]

Foreign-Trade Zone 189--Muskegon, Michigan; Application for
Subzone Status ESCO Company Limited Partnership (Colorformer/Pigment/
Dye Chemicals) Muskegon, MI

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the KOM Foreign Trade Zone Authority, grantee of FTZ 189, requesting special-purpose subzone status for the colorformer chemicals manufacturing facility of ESCO Company Limited Partnership (ESCO) (jointly owned by Mitsui Toatsu Chemicals and Yamamoto Chemicals (Japan)), in Muskegon, Michigan. 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 July 8, 1996.

The ESCO plant (70,000 sq.ft./25 acres) is located at 2340 Roberts Street, Muskegon (Muskegon County), Michigan. The facility produces pigment/dye-type chemicals known as ``colorformers'', which are used in the manufacture of pressure and heat-sensitive paper such as that used for thermal fax machines. The main products currently manufactured at the plant are: Black XV, N-102 and YK-2 (HTS 3204.12.5000--17.3%) and ODB-2 (HTS 3204.19.4000--13.3%). Some 20 percent of production will be exported.

Zone procedures would exempt ESCO from Customs duty payments on foreign materials used in production for export. On domestic shipments, the company would be able to defer duty on foreign-sourced inputs until formal Customs entry is made. Foreign-sourced inputs include aniline derivative (HTS 2921.49.1000--5.8%), diphenylamine (HTS 2921.44.2000-- 12.1%), m-aminophenol (HTS 2922.29.1000--5.8%) and diethyl-m- aminophenol (HTS 2922.29.1500--6.7%).

The application indicates that the savings from zone procedures will help improve the international competitiveness of the ESCO plant and will help increase exports.

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 September 23, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period (to October 7, 1996).

A copy of the application and accompanying exhibits will be available for public inspection at each of the following locations:

U.S. Department of Commerce Export Assistance Center, 301 W. Fulton St., Suite 718, Grand Rapids, Michigan 49503-6495 Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce Room 3716, 14th and Pennsylvania Avenue NW., Washington, DC 20230.

Dated: July 16, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-18674 Filed 7-22-96; 8:45 am]