[Federal Register Volume 64, Number 117 (Friday, June 18, 1999)]
[Notices]
[Pages 32844-32845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15566]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Order No. 1039]


Grant of Authority for Subzone Status Kvaerner Philadelphia 
Shipyard, Inc. (Shipbuilding), Philadelphia, PA

    Pursuant to its authority under the Foreign-Trade Zones Act of June 
18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board 
(the Board) adopts the following Order:
    Whereas, by an Act of Congress approved June 18, 1934, an Act ``To 
provide for the establishment * * * of foreign-trade zones in ports of 
entry of the United States, to expedite and encourage foreign commerce, 
and for other purposes,'' as amended (19 U.S.C. 81a-81u) (the FTZ Act), 
the Foreign-Trade Zones Board (the Board) is authorized to grant to 
qualified corporations the privilege of establishing foreign-trade 
zones in or adjacent to U.S. Customs ports of entry; Whereas, the 
Board's regulations (15 CFR Part 400) provide for the establishment of 
special-purpose subzones when existing zone facilities

[[Page 32845]]

cannot serve the specific use involved, and when the activity results 
in a significant public benefit and is in the public interest;
    Whereas, an application from the Philadelphia Regional Port 
Authority, grantee of FTZ 35, for authority to establish special-
purpose subzone status for the shipbuilding facility of Kvaerner 
Philadelphia Shipyard, Inc., in Philadelphia, Pennsylvania, was filed 
by the Board on December 10, 1998, and notice inviting public comment 
was given in the Federal Register (FTZ Docket 56-98, 63 FR 69261, 12-
16-98); and,
    Whereas, the Board adopts the findings and recommendations of the 
examiner's report, and finds that the requirements of the FTZ Act and 
Board's regulations would be satisfied, and that approval of the 
application would be in the public interest if approval were given 
subject to the standard shipyard restriction on foreign steel mill 
products;
    Now, Therefore, the Board hereby grants authority for subzone 
status at the shipbuilding facility of Kvaerner Philadelphia Shipyard, 
Inc., in Philadelphia, Pennsylvania (Subzone 35E), at the location 
described in the application, subject to the FTZ Act and the Board's 
regulations, including Sec. 400.28, and subject to the following 
special conditions:

    1. Any foreign steel mill products admitted to the subzone, 
including plate, angles, shapes, channels, rolled steel stock, bars, 
pipes and tubes, not incorporated into merchandise otherwise 
classified, and which is used in manufacturing, shall be subject to 
Customs duties in accordance with applicable law, unless the 
Executive Secretary determines that the same item is not then being 
produced by a domestic steel mill; and,
    2. In addition to the annual report, Kvaerner Philadelphia 
Shipyard, Inc., shall advise the Board's Executive Secretary 
(Sec. 400.28(a)(3)) as to significant new contracts with appropriate 
information concerning foreign purchases otherwise dutiable, so that 
the Board may consider whether any foreign dutiable items are being 
imported for manufacturing in the subzone primarily because of 
subzone status and whether the Board should consider requiring 
Customs duties to be paid on such items.

    Signed at Washington, DC, this 3rd day of June 1999.
Richard W. Moreland,
Acting Assistant Secretary of Commerce for Import Administration, 
Alternate Chairman, Foreign-Trade Zones Board.
[FR Doc. 99-15566 Filed 6-17-99; 8:45 am]
BILLING CODE 3510-DS-P