[Federal Register Volume 63, Number 236 (Wednesday, December 9, 1998)]
[Notices]
[Pages 67853-67854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32727]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 54-98]
Foreign-Trade Zone 73--Baltimore/Washington International
Airport, Maryland Application for Foreign-Trade Subzone Status:
Northrop Grumman Corporation--Electronic Sensors and Systems Division
(Electronic Sensoring, Processing, and Communications Technologies),
Baltimore, MD, Area
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Maryland Department of Transportation, grantee of
FTZ 73, requesting special-purpose subzone status for the manufacturing
facilities (telecommunication/information systems) of the Electronic
Sensors and Systems Division (ESSD) of Northrop Grumman Corporation,
located at sites in the Baltimore, Maryland, area. The application was
submitted pursuant to 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 December 1, 1998.
The Northrup Grumman ESSD facilities are located at eleven sites in
the Baltimore, Maryland, area (404 acres, 3.6 million sq. ft.): Site 1
(1 building/450,000 square feet on 43 acres)--Advanced Technology Labs,
located at 1212 Winterson Road, Linthicum; Site 2 (10 buildings/1.7
million sq. ft. on 129 acres)--main manufacturing site, located at 7323
Aviation Boulevard, BWI Airport, Linthicum; Site 3 (4 buildings/14,000
sq. ft. on 86 acres)--test ranges located at 7141 Ridge Road, Hanover;
Site 4 (1 building/114,000 sq. ft. on 5 acres)--Material Acquisition
Center, located at 7001 Aviation Boulevard, Glen Burnie; Site 5 (5
buildings/274,000 sq. ft. on 49 acres)--located at 895 & 897 Oceanic
Drive, Annapolis; Site 6 (1 building/182,000 sq. ft. on 35 acres)--
located at 7301 Sykesville Road, Sykesville; Site 7 (6 buildings/
120,000 sq. ft. on 5 acres)--warehouses located at Trident Court #6,
Halethorpe; Site 8A (1 building/69,000 sq. ft. on 1.5 acres)--warehouse
located at 7041 Troy Hill Drive, Elkridge; Site 8B (1 building/135,000
sq. ft. on 3 acres)--warehouse located at 7040 Troy Hill Drive,
Elkridge; Site 9 (2 buildings/105,000 sq. ft. on 5.6 acres)--repair
center located in Hunt Valley; Site 10 (1 building/143,000 sq. ft. on
11 acres)--located at 1745 W. Nursery Road, Linthicum; and Site 11 (2
buildings/316,000 sq. ft. on 31 acres)--located at 1580B W. Nursery
Road, Linthicum.
The facilities (7,021 employees) are used for the development and
manufacture of telecommunication and information systems products and
related software for defense, aerospace, and transportation. Product
categories include: combat electronic systems (including airborne
radar, air defense, electronic warfare, electro-optical sensors,
shipboard radar, sonar and anti-submarine warfare), airborne
surveillance and reconnaissance, air traffic control, marine propulsion
and power generation, ground-based and satellite telecommunications,
information services and data automation. Some of the components used
in the manufacturing process are purchased from abroad (an estimated
10-15% of finished product value),
[[Page 67854]]
including processed silicon carbides; bolts; nails; metal aircraft
mountings; coated rods and cored wire for soldering; machinery for
molding rubber or plastic; other machinery; electrical transformers;
speed drive controllers for electric motors; static converters;
electrical ignition starting system parts; single line telephone sets;
carrier-current line system apparatuses; sound recording apparatuses;
pickup cartridges for sound or video recording or reproducing
apparatuses; citizens-band transceivers; radar apparatuses; radio
navigational aid apparatuses; video monitors; antennas/antenna
reflectors/parts; radar apparatus printed-circuit assemblies or
subassemblies; other audio/video components; parts of printed circuit
assemblies of radar; radio navigational aid or radio remote control
apparatuses; assemblies and subassemblies of radar apparatuses; parts
of radar apparatuses; electrical apparatuses for switching or
protecting circuits; signal generators; other electrical machines and
apparatuses; parts of other electrical machines and apparatuses;
coaxial cable and other electrical conductors; ignition wiring sets and
other wiring sets; other electric conductors fitted with connectors;
other electric conductors; other electrical parts; aircraft launching
gear/deck-arrestors/parts; gauges; measuring or checking equipment;
parts of measuring or checking equipment; and process control
instruments and apparatus (duty rates on these items range from 0.1% to
5.7%). The company also uses a number of foreign-sourced items that are
duty free.
Zone procedures would exempt ESSD from Customs duty payments on
foreign components used in export production. FTZ procedures will help
ESSD to implement a more cost-effective system for handling Customs
requirements (including reduced brokerage fees and Customs merchandise
processing fees). On its domestic sales, ESSD also would be able to
choose the lower duty rate that applies to the finished products (duty-
free to 7.0%) for the foreign components noted above. FTZ status may
also make a site eligible for benefits provided under state/local
programs. The application indicates that the savings from zone
procedures would help improve the plant'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 February 8, 1999. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period to February 22, 1999.
A copy of the application and the accompanying exhibits will be
available for public inspection at each of the following locations:
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, N.W.,
Washington, D.C. 20230
U.S. Department of Commerce Export Assistance Center, World Trade
Center, Suite 2432, 401 East Pratt Street, Baltimore, Maryland 21202
Dated: December 1, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-32727 Filed 12-8-98; 8:45 am]
BILLING CODE 3510-DS-P