[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Notices]
[Pages 57626-57627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27958]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 49-99]


Foreign-Trade Zone 207--Richmond International Airport, Virginia; 
Application for Foreign-Trade Subzone Status, Ericsson, Inc. (Cellular 
Telephones, Wireless Communications Equipment, and Private Radio 
Equipment), Lynchburg, VA

    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 (cellular telephones, wireless communications equipment, and 
private radio equipment) of Ericsson, Inc. (Ericsson), located at sites 
in Lynchburg, Virginia. 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 15, 1999.
    The Ericsson facilities (153 acres, 1 million sq. ft.) are located 
at three sites in Lynchburg: manufacturing facility at 1 Mountain View 
Road; finished goods facility at 314 Jefferson Parkway; and parts 
inventory facility at 37 Millrace Drive. These facilities (3,000+ 
employees) are currently used for the manufacture of cellular 
telephones,

[[Page 57627]]

wireless communications equipment, and private radio equipment. Some of 
the components used in manufacturing these products are purchased from 
abroad (comprising 50 to 60 % of parts value), including keypads, pin 
connectors, amplifiers, coaxial cable, storage batteries, transformers, 
switches, electric motors, clasps, loud speakers, screws, rubber parts, 
filter paper, and storage battery parts (duty rates on these items 
range from 1.8% to 6.6%).
    Zone procedures would exempt Ericsson 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 rates that apply to the finished 
products (ranging from duty free to 3.4%) 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 (scrap rate estimated at 1% of parts). FTZ 
procedures will help Ericsson to implement a more cost-effective system 
for handling Customs requirements (including reduced 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 
facilities' 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 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, DC 20230
U.S. Department of Commerce Export Assistance Center, 400 North 8th 
Street, Suite 540, Richmond, VA 23240-0026

    Dated: October 15, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-27958 Filed 10-25-99; 8:45 am]
BILLING CODE 3510-DS-P