[Federal Register Volume 67, Number 37 (Monday, February 25, 2002)]
[Notices]
[Page 8519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4429]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Order No. 1210]


Grant of Authority for Subzone Status; Austal USA, LLC 
(Shipbuilding); Mobile, AL

    Pursuant to its authority under the Foreign-Trade Zones Act of June 
18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board 
(the Board) adopts the following Order:
    WHEREAS, by an Act of Congress approved June 18, 1934, an Act ``To 
provide for the establishment . . . of foreign-trade zones in ports of 
entry of the United States, to expedite and encourage foreign commerce, 
and for other purposes,'' as amended (19 U.S.C. 81a-81u) (the FTZ Act), 
the Foreign-Trade Zones Board (the Board) is authorized to grant to 
qualified corporations the privilege of establishing foreign-trade 
zones in or adjacent to U.S. Customs ports of entry;
    WHEREAS, the Board's regulations (15 CFR part 400) provide for the 
establishment of special-purpose subzones when existing zone facilities 
cannot serve the specific use involved, and when the activity results 
in a significant public benefit and is in the public interest;
    WHEREAS, an application from the City of Mobile, Alabama, grantee 
of FTZ 82, for authority to establish special-purpose subzone status 
for the shipbuilding facility of Austal USA, LLC (Austal), in Mobile, 
Alabama, was filed by the Board on January 9, 2001, and notice inviting 
public comment was given in the Federal Register (FTZ Docket 1-2001, 66 
FR 3984, 1-17-2001); and,
    WHEREAS, the Board adopts the findings and recommendations of the 
examiner's report, and finds that the requirements of the FTZ Act and 
Board's regulations would be satisfied, and that approval of the 
application would be in the public interest if approval were given 
subject to the standard shipyard restriction on foreign steel mill 
products;
    NOW, THEREFORE, the Board hereby grants authority for subzone 
status at the shipbuilding facility of Austal USA, LLC, in Mobile, 
Alabama (Subzone 82H), at the location described in the application, 
subject to the FTZ Act and the Board's regulations, including Section 
400.28, and subject to the following special conditions:

    1. Any foreign steel mill product admitted to the subzone, 
including plate, angles, shapes, channels, rolled steel stock, bars, 
pipes and tubes, not incorporated into merchandise otherwise 
classified, and which is used in manufacturing, shall be subject to 
Customs duties in accordance with applicable law, unless the 
Executive Secretary determines that the same item is not then being 
produced by a domestic steel mill.
    2. In addition to the annual report, Austal shall advise the 
Board's Executive Secretary (Sec. 400.28(a)(3)) as to significant 
new contracts with appropriate information concerning foreign 
purchases otherwise dutiable, so that the Board may consider whether 
any foreign dutiable items are being imported for manufacturing in 
the subzone primarily because of subzone status and whether the 
Board should consider requiring Customs duties to be paid on such 
items.
    3. All foreign-origin quota-class merchandise must be admitted 
to the subzone under privileged domestic status (19 CFR 
146.43(a)(2)).

    Signed at Washington, DC, this 12th day of February 2002.
Faryar Shirzad,
Assistant Secretary of Commerce for Import Administration, Alternate 
Chairman, Foreign-Trade Zones Board.
[FR Doc. 02-4429 Filed 2-22-02; 8:45 am]
BILLING CODE 3510-DS-P