[Federal Register Volume 64, Number 95 (Tuesday, May 18, 1999)]
[Notices]
[Pages 26933-26934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12505]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
(Docket 19-99)


Foreign-Trade Zone 93-Durham, North Carolina; Application For 
Foreign-Trade Subzone Status; Philips Monitor Raleigh (Computer 
Monitors and Related Peripheral Products), Durham, NC

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Triangle J Council of Governments, grantee of FTZ 
93, requesting special-purpose subzone status for the manufacturing 
facilities (computer monitors and related peripheral products) of 
Philips Monitor Raleigh (Philips), located at sites in the Durham, 
North Carolina, 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 
May 6, 1999.
    The Philips facilities (16 acres, 168,000 sq. ft.) are located at 
627 and 701 Distribution Drive, Durham, North Carolina. The facilities 
(200 employees) are currently used for the manufacture of computer 
monitors. The application indicates that products which may be produced 
at the plant in the future include: computer keyboards; computer 
speakers (internal and external); computer video cameras (internal and 
external); computer microphones (internal and external); USB hubs, 
ports, cables and connectors; ``ultra-thin clients;'' LCD monitors; and 
computer mouses. Some of the components used in manufacturing computer 
monitors are purchased from abroad (an estimated 63% of finished 
product value), including connectors, screws, knobs, springs, metal 
plates, brackets, cable ties, lenses, sliders, wire harnesses, power 
cords, degauss coils, cables, and cathode ray tubes (duty rates on 
these items range from 1.9% to 6.5%). The company also uses a number of 
foreign-sourced items that are duty free.
    Zone procedures would exempt Philips from Customs duty payments on 
foreign components used in export production. On domestic shipments, 
the company would be able to defer Customs duty payments on foreign 
materials, and to choose the duty rate

[[Page 26934]]

that applies to the finished products (computer monitors are duty free) 
instead of the rates otherwise applicable to the foreign input 
materials (noted above). The company would also be exempt from duty 
payments on foreign merchandise that becomes scrap/waste. FTZ 
procedures will help Philips to implement a more cost-effective system 
for handling Customs requirements (including reduced brokerage fees and 
Customs merchandise processing fees). 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 July 19, 1999. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period to August 2, 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, 400 West Market 
Street, Suite 102, Greensboro, NC 27401

    Dated: May 6, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-12505 Filed 5-17-99; 8:45 am]
BILLING CODE 3510-DS-P