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DEPARTMENT OF COMMERCE
[Docket A(32b1)-1-97]
62--Brownsville, TX; Request for Manufacturing
Authority AMFELS, Inc. (Offshore Drilling Platforms/Shipbuilding)
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Brownsville Navigation District, grantee of FTZ 62,
pursuant to Sec. 400.32(b)(1) of the Board's regulations (15 CFR Part
400), requesting authority on behalf of AMFELS, Inc. (AMFELS)(a
subsidiary of FELS Offshore PTE Ltd., of Singapore), for the
manufacture, refurbishment and repair of mobile offshore drilling and
other oceangoing vessels under FTZ procedures within FTZ 62. It was
formally filed on February 25, 1997.
AMFELS operates a 133-acre facility (800 employees) within FTZ 62-
Site 8 (Brownsville Navigation District) for the manufacture,
refurbishment and repair of offshore petroleum drilling/production
platforms (HTSUS#8905.20), classified as oceangoing vessels. Up to 70
percent of the components of the platforms are purchased from foreign
sources, including steel plates, high pressure pipes and fittings,
electric cables, and steel cable anchor chains (1997 duty rate range:
free-6.2%, ad valorem).
This application requests authority to allow AMFELS 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 AMFELS 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 the foreign electric cables and cable anchor chains 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
from FTZ procedures would help improve the facility's international
competitiveness.
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 April 7, 1997. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to April 21, 1997).
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: February 27, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-5630 Filed 3-6-97; 8:45 am]
BILLING CODE 3510-DS-P