[Federal Register Volume 65, Number 231 (Thursday, November 30, 2000)]
[Notices]
[Page 71297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30567]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 59-2000]


Foreign-Trade Zone 22--Chicago, Illinois; Application For 
Foreign-Trade Subzone Status, Northrop Grumman Corporation--Defense 
Systems Division (Radar and Electro-Optical Systems), Rolling Meadows, 
Illinois

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Illinois International Port District, grantee of FTZ 
22, requesting special-purpose subzone status for the manufacturing 
facilities (radar and electro-optical systems) of the Defense Systems 
Division (DSD) of Northrop Grumman Corporation, located in Rolling 
Meadows, Illinois. 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 
November 15, 2000.
    The Northrup Grumman DSD facilities are located at 600 Hicks Road, 
Rolling Meadows, Illinois (2 buildings/959,000 square feet on 50 
acres). The facilities (2,500 employees) are used for the development 
and manufacture of radar and electro-optical systems for defense, 
aerospace, and transportation applications. Some of the components used 
in the manufacturing process are purchased from abroad (an estimated 
40% of finished product value), including: plastic boxes or crates; 
vulcanized rubber products; printed labels; transfers (decalomanias); 
self-adhesive plastic flat shapes; aluminum castings; hand tools; 
mirrors; pressure-reducing valves; electric motors and generators; 
electrical transformers, static converters, and inductors; plugs or 
sockets; printed-circuit assemblies and assembly parts; electrical 
switching/connection/circuit-protection parts; arc lamps; coaxial 
cable; electric conductors; mirrors and other optical elements, 
instruments, and devices, including parts; lasers; materials testing 
machines; and oscilloscopes, oscillographs, and other measuring or 
checking instruments. Duty rates on these imported items range from 
1.7% to 5.8%. The company also uses a number of foreign-sourced items 
that are duty free.
    Zone procedures would exempt DSD from Customs duty payments on 
foreign components used in export production. FTZ procedures will help 
DSD to implement a more cost-effective system for handling Customs 
requirements (including reduced brokerage fees and Customs merchandise 
processing fees). On its domestic sales, DSD would be able to choose 
the lower duty rate that applies to the finished products (duty-free to 
2.8%), where applicable, for the foreign components noted above. DSD 
would also be able to defer payment of duties on imported components 
until Customs entry is made on the finished products. The company would 
be exempt from duty payments on foreign merchandise that becomes scrap/
waste (scrap rate estimated at 1.5% of parts). 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 plant's 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 January 29. 2001. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period to February 13, 2001.
    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, NW., 
Washington, DC 20230
U.S. Department of Commerce Export Assistance Center 55 W. Monroe St., 
Suite 2440, Chicago, Illinois 60603

    Dated: November 16, 2000.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 00-30567 Filed 11-29-00; 8:45 am]
BILLING CODE 3510-DS-P