[Federal Register Volume 65, Number 129 (Wednesday, July 5, 2000)]
[Notices]
[Pages 41430-41431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16957]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 32-2000]


Foreign-Trade Zone 112--Colorado; Springs, CO; Application for 
Expansion and Request for Manufacturing Authority (Data Storage 
Systems)

    An application has been submitted to the Foreign-Trade Zones (FTZ) 
Board (the Board) by the Colorado Springs Foreign-Trade Zone, Inc., 
grantee of FTZ 112, requesting authority to reorganize and expand its 
existing zone space to include three new sites in Colorado Springs, 
Colorado, and requesting, on behalf of the Quantum Corporation and its 
subsidiaries (Quantum), authority to manufacture data storage drives 
under zone procedures within FTZ 112 (Colorado Springs Customs Service 
Station). The application was submitted pursuant to the provisions of 
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 
June 27, 2000.
    FTZ 112 was approved on November 1, 1984 (Board Order 281, 49 FR 
44936, 11/13/84). The zone currently consists of one site (2,270 acres) 
within the Colorado Centre industrial and commercial community on 
Drennan Road, in El Paso County, adjacent to the Colorado Springs 
Municipal Airport.
    The applicant is now requesting authority to transfer 1017.22 acres 
from the current site to three proposed sites. The area to be removed 
from the zone is located within the current Site 1, the Colorado Centre 
and is north of Fontaine Boulevard, east of Powers Boulevard, south of 
Bradley Road, and west of Meridian Road. The expansion would include 
the following new sites: proposed Site 2: (55.84 acres) Arrowswest 
Business and Industrial Park, located along the Garden of the Gods 
High-Tech Corridor, Colorado Springs, Colorado; proposed Site 3: 
(202.94 acres) InterQuest Business and Industrial Park, located at the 
intersection of I-25 and InterQuest Parkway; and proposed Site 4: 
(1023.6 acres) Colorado Springs Airport, located at the intersection of 
Powers Boulevard and Drennan Road. The proposed expansion would add 
265.48 acres to the zone.
    The application also requests authority on behalf of Quantum to 
manufacture data storage systems within FTZ 112 (within the proposed 
expansion area). Quantum currently operates in three buildings (392,688 
square feet) within proposed Site 3. The Quantum facilities are used 
for the manufacturing of DLTtapeTM drives, solid state disk 
drives, ATL Products (DLTtapeTM libraries) and Snap! Systems 
(file servers) (HTS 8471, duty free). Components and materials sourced 
from abroad (representing about 60% of all parts consumed in 
manufacturing) include: vulcanized rubber, packing materials of wood, 
plastic and paper, springs, data processing machines and parts, 
gaskets, electric motors and parts, electrical transformers, bearings, 
primary cells and batteries, prepared unrecorded media, insulated wire, 
measuring instruments and electrical apparatuses for switching 
electrical circuits (HTS 3923, 3926, 4016, 4819, 4821, 7320, 8471, 
8473, 8484, 8485, 8501, 8503, 8504, 8506, 8523, 8536, 8544, and 9031, 
duty rate ranges from duty-free to 10.7%).
    FTZ procedures would exempt Quantum from Customs duty payments on 
the foreign components used in export production. Some 27 percent of 
the plant's shipments are exported. On its domestic sales, Quantum 
would be able to choose the duty rates during Customs entry procedures 
that apply to finished data storage drives (duty-free) for the foreign 
inputs noted above. The request indicates that the savings from FTZ 
procedures would help improve the plant's international 
competitiveness.
    In accordance with the Board's regulations, a member of the FTZ 
staff has been appointed examiner to investigate the application and 
report to the Board.
    Public comment on the application is invited from interested 
parties. Submissions (original and 3 copies) shall be addressed to the 
Board's Executive Secretary at the address below. The closing period 
for their receipt is September 5, 2000. Rebuttal comments in response 
to material submitted during the foregoing period may be submitted 
during the subsequent 15-day period (to September 18, 2000).
    A copy of the application and the accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce, Export Assistance Center, 1625 Broadway, 
Suite 680, Denver, CO 80202
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th and Pennsylvania Avenue, NW., 
Washington, D.C. 20230


[[Page 41431]]


    Dated: June 28, 2000.
Pierre V. Duy,
Acting Executive Secretary.
[FR Doc. 00-16957 Filed 7-3-00; 8:45 am]
BILLING CODE 3510-DS-P