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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 60-97]
Foreign-Trade Zone 124--Gramercy, LA; Application for Subzone
Status, Halter Marine, Inc. (Shipbuilding)
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the South Louisiana Port Commission, grantee of FTZ 124,
requesting special-purpose subzone status for the shipbuilding facility
of Halter Marine, Inc. (HMI), located in Lockport, Louisiana. 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 16, 1997.
The HMI shipyard (133 acres, 270 employees) is located on State
Highway 308, north of the City of Lockport (LaFourche Parish),
Louisiana, and is used in the construction, repair, and conversion of
commercial and military vessels for domestic and international
customers. Foreign components used at the HMI shipyard (up to 20% of
total) include propulsion units, main engines, casting plates, bow
thrusters, and pilot chairs (1997 duty rate range: free-10%, ad
valorem).
FTZ procedures would exempt HMI from Customs duty payments on the
foreign components used in export activity. 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-origin components noted
above. The manufacturing activity conducted under FTZ procedures would
be subject to the ``standard shipyard restriction'' applicable to
foreign-origin steel mill products, which requires that full duties be
paid on such items. Foreign-sourced steel mill products, such as pipe
and plate, would be subject to the full Customs duties applicable to
those items. The application indicates that the savings from FTZ
procedures would help improve the facility'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 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 September 22, 1997. Rebuttal
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comments in response to material submitted during the foregoing period
may be submitted during the subsequent 15-day period (to October 7,
1997).
A copy of the application will be available for public inspection
at the following locations:
Office of the Port Director, U.S. Customs Service, P.O. Box 490, 110
North Airline Avenue, Gramercy, LA 70052
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: July 17, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-19551 Filed 7-23-97; 8:45 am]
BILLING CODE 3510-DS-P