[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Notices]
[Page 57627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27956]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 47-99]


Foreign-Trade Zone 207--Richmond International Airport, Virginia; 
Application for Foreign-Trade Subzone Status; Alfa Laval Thermal, Inc. 
(Heat Exchangers); Richmond, VA, Area

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Capital Region Airport Commission, grantee of FTZ 
207, requesting special-purpose subzone status for the manufacturing 
facilities (heat exchangers and parts) of the Alfa Laval Thermal, Inc. 
(Alfa Laval), located at sites in the Richmond, Virginia, 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 October 14, 1999.
    The Alfa Laval facilities are located at three sites in the 
Richmond, Virginia, area (23 acres, 115,000 sq. ft. total): Site 1 (1 
building/80,000 square feet on 17 acres)--headquarters and main 
manufacturing facilities, located at 5400 International Trade Drive, 
Richmond; Site 2 (portion of 1 building/23,000 sq. ft.)--space used for 
repairs, light manufacturing, and warehousing, at 520 East Park Court, 
Woodland Center, Richmond; and Site 3 (1 building/10,500 sq. ft. on 2.2 
acres)--stocking and repair facility, located at 11100 Air Park Road, 
Hanover Industrial Park, Ashland.
    The facilities (200 employees) are used for the engineering, 
manufacture, service, and distribution of Alfa Laval's heat exhanger 
products, which include plate heat exchangers, brazed heat exchangers, 
spiral heat exchangers, scraped surface heat exchangers, and new or 
reconditioned heat exchanger parts. Some of the components used in the 
manufacturing process are purchased from abroad (an estimated 38% of 
finished product value), including: nuts; screws; gaskets; washers; 
adhesives; stainless steel angles, shapes, and section; needle roller 
bearings; and titanium sheet (duty rates on the imported items range 
from 0.4% to 15.0%). The company will also use several foreign-sourced 
items that are duty free. The company indicates that it will admit the 
aforementioned stainless steel products to the proposed subzone in 
privileged-foreign status.
    Zone procedures would exempt Alfa Laval from Customs duty payments 
on foreign components used in export production. FTZ procedures will 
help Alfa Laval to implement a more efficient and cost-effective system 
for handling Customs requirements (including reduced Customs 
merchandise processing fees). On its domestic sales, Alfa Laval would 
be able to choose the lower duty rate that applies to the finished 
products (0.8%) for the foreign components noted above, with the above-
noted exception of stainless steel products. The company also would 
benefit from duty savings on scrap and waste resulting from the 
production process (Alfa Laval estimates its scrap rate as one percent 
of all components and materials). 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 facilities' international competitiveness, and would enable 
the company to shift additional production from overseas to the 
Richmond-area facilities.
    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 December 27, 1999. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period to January 10, 2000.
    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 North 8th 
Street, Suite 540, Richmond, VA 23240-0026

    Dated: October 14, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-27956 Filed 10-25-99; 8:45 am]
BILLING CODE 3510-DS-P