[Federal Register Volume 67, Number 224 (Wednesday, November 20, 2002)]
[Notices]
[Pages 70046-70047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29498]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 51-2002]


Foreign-Trade Zone 124--Gramercy, LA; Application for Subzone 
Status: J. Ray McDermott, Inc. (Offshore Drilling Platforms)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of South Louisiana Commission, grantee of FTZ 
124, requesting special-purpose subzone status for the offshore 
drilling platform manufacturing facilities of J. Ray McDermott, Inc. 
(JRM), in Amelia, Louisiana. 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 November 12, 2002.
    The proposed subzone would consist of two sites leased by JRM in 
Amelia, Louisiana: Site 1 (589 acres)--``East/Southeast Yard'', 2317 
Highway 662 South (Assumption Parish), and Site 2 (50 acres)--``West 
Yard'', 539 Degravelle Road (St. Mary Parish), located about 50 miles 
southwest of New Orleans. The

[[Page 70047]]

facilities (1,440 employees) are used for the construction, 
fabrication, and repair of offshore floating and fixed oil drilling 
platforms and components thereof for domestic and international 
customers. Foreign components that may be used at the JRM yards 
(representing about 20% of finished platform value) may include gas 
turbines, gas compressors, generator sets, steel mill products, valves, 
pumps, centrifuges, flexible tubing, electrical flow control systems, 
and generators (2002 general duty rate range: free--5.0%, ad valorem).
    FTZ procedures would exempt JRM from Customs duty payments on the 
foreign components (except steel mill products) used in export 
activity. On its domestic sales, the company would not be required to 
pay applicable Customs duties on the foreign components, or it would be 
able to choose the duty rate that applies to finished offshore drilling 
platforms (duty free) for the foreign-origin components noted above 
except for steel mill products. The manufacturing activity conducted 
under FTZ procedures would be subject to the ``standard shipyard 
restriction'' applicable to foreign-origin steel mill products (e.g., 
angles, pipe, plate), which requires that full Customs duties be paid 
on such items. The application indicates that the savings from FTZ 
procedures would help improve the facility'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 following addresses:
    1. Submissions via Express/Package Delivery Services: Foreign-Trade 
Zones Board, U.S. Department of Commerce, Franklin Court Building-Suite 
4100W, 1099 14th Street, NW., Washington, DC 20005; or,
    2. Submissions via the U.S. Postal Service: Foreign-Trade Zones 
Board, U.S. Department of Commerce, FCB-4100W, 1401 Constitution Ave., 
NW., Washington, DC 20230.
    The closing period for their receipt is January 21, 2003. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period to February 3, 
2003.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
address No. 1 listed above and at the U.S. Department of Commerce 
Export Assistance Center, Suite 1170, 365 Canal Street, New Orleans, LA 
70130.

    Dated: November 12, 2002.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 02-29498 Filed 11-19-02; 8:45 am]
BILLING CODE 3510-DS-P