[Federal Register Volume 65, Number 157 (Monday, August 14, 2000)]
[Notices]
[Pages 49536-49537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20559]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 46-2000]


Foreign-Trade Zone 86--Tacoma, Washington Application For 
Foreign-Trade Subzone Status Matsushita Kotobuki Electronics Industries 
of America, Inc. (9- and 13-inch Television/Video Cassette Recorder 
Combination Units) Vancouver, Washington

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Tacoma, Washington, grantee of FTZ 86, 
requesting special-purpose subzone status for the manufacturing and 
warehousing facilities (9- and 13-inch television/video cassette 
recorder combination (``TV/VCR'') units) of Matsushita Kotobuki 
Electronics Industries of America, Inc. (MKA), located at sites in 
Vancouver, Washington. The application indicates that MKA's Vancouver 
facilities also produce TV/VCR units in sizes larger than the 9- and 
13-inch units, but that the company is not seeking authority to produce 
the larger sizes under FTZ procedures. 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 August 2, 2000.
    The MKA facilities are located at four sites in Vancouver, 
Washington (five buildings and two trailers, 427,300 sq. ft. total): 
Site #1 (one manufacturing building, one warehouse building and two 
office trailers/282,800 sq. ft.)--located at 2001 Kotobuki Way; Site #2 
(one warehouse building/8,500 sq. ft.)--located across the street from 
2001 Kotobuki Way; Site #3 (one warehouse building/108,000 sq. ft.)--
located at 3201 Lower Port Road; and Site #4 (one warehouse building/
28,000 sq. ft.)--located at 1923 Elevator Way.
    The facilities (475 full-time employees and 160-180 contract 
employees) are used for the assembly and warehousing of MKA's TV/VCR 
units. Some of the components used in the manufacturing process are 
purchased from abroad, and account for 72% to 73% of finished product 
value. The imported components and their duty rates are as follows: 9-
inch cathode

[[Page 49537]]

ray tube (7.5% duty rate); 13-inch cathode ray tube (7.5%); speakers 
(4.9%); remote control (2.7%); and TV/VCR chassis (duty-free).
    Zone procedures would exempt MKA from Customs duty payments on 
foreign components used in export production. FTZ procedures will help 
MKA to implement a more efficient and cost-effective system for 
handling Customs requirements. On its domestic sales, MKA would be able 
to choose the lower duty rate that applies to the finished products 
(duty-free) for the foreign components noted above. The company also 
could benefit from duty savings on scrap and waste resulting from the 
production process. 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 October 13, 2000. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period to October 30, 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 4008, 14th and Pennsylvania Avenue, N.W., 
Washington, DC 20230.
U.S. Department of Commerce Export Assistance Center, One World Trade 
Center, 121 SW Salmon Street, Suite 242, Portland, OR 97204.

    Dated: August 4, 2000.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 00-20559 Filed 8-11-00; 8:45 am]
BILLING CODE 3510-DS-P