[Federal Register Volume 68, Number 127 (Wednesday, July 2, 2003)]
[Notices]
[Pages 39509-39510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16671]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 32-2003]


Foreign-Trade Zone 52--Suffolk County, NY, Application for 
Subzone Status, Festo Corporation Facilities (Pneumatic Industrial 
Automation Components), Hauppauge, NY

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by Suffolk County, New York, grantee of FTZ 52, requesting 
special-purpose subzone status for the pneumatic industrial automation 
components manufacturing facilities of Festo Corporation (Festo) (a 
subsidiary of Festo AG, of Germany), located in Hauppauge, New York. 
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

[[Page 39510]]

part 400). It was formally filed on June 23, 2003.
    The proposed subzone would include Festo's two manufacturing 
facilities located in Suffolk County, Long Island: Site 1 (8 acres/
99,000 sq. ft.)--located at 395 Moreland Road, Hauppauge, New York; 
and, Site 2 (5 acres/53,000 sq. ft.)--located at 430 Wireless 
Boulevard, Hauppauge, about one quarter of a mile to the east of Site 
1. The facilities (200 employees) are used to produce pneumatic 
industrial automation components, including pneumatic cylinders, 
pneumatic valves and valve manifolds, and pneumatic and electronic 
integrated control systems (HTSUS 8412.31, 8481.20, 8537.10, 8428.90), 
and to distribute similar imported components for export and the U.S. 
market. The manufacturing process at the facilities involves machining, 
assembly, and testing of up to 130,000 units annually. Components 
purchased from abroad (about 40% of finished component value) used in 
manufacturing include: Greases, plastic gaskets/profiles/tubes/rolls/
sheet/boxes, belts, rubber tubes and o-rings, packaging material, 
casters, base metal mountings, flex tubing, clasps, hydraulic engines, 
pumps, air compressors, wooden pins/dowels, stainless and alloy steel 
products (must be admitted under privileged foreign status (19 CFR 
146.41)), fasteners, springs, washers, articles of aluminum, air dryers 
and purifiers, sprayers and related parts, pneumatic and hydraulic 
valves, regulators, ballcocks, bearings, transmissions, transmission/
crankshafts, flanges, gears, clutches, couplings, chains, sprockets, 
electrical connectors, motors, generators, transformers, converters, 
magnets, lithium batteries, capacitors, printed circuit boards, fuses, 
relays, switches, lampholders/sockets, panel/distribution boards, 
controllers, circuit breakers, diodes, conductors, fiber optic cable, 
and liquid meters (2003 duty rate range: Free--24%).
    FTZ procedures would exempt Festo from Customs duty payments on the 
foreign component inputs used in export production. On its domestic 
sales and exports to NAFTA markets, the company would be able to choose 
the duty rate that applies to finished industrial automation components 
(free--2.7%) for the foreign-sourced inputs noted above. Festo would be 
able to defer Customs duty payments on the foreign-origin finished 
industrial automation components that would be admitted to the proposed 
subzone for U.S. distribution. Duties would be deferred or reduced on 
foreign production equipment admitted to the proposed subzone until 
which time it becomes operational. The application indicates that 
subzone status 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 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 September 2, 2003. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period (to September 15, 
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, 40th Floor, 20 Exchange Place, New York, NY 10005.

    Dated: June 24, 2003.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 03-16671 Filed 7-1-03; 8:45 am]
BILLING CODE 3510-DS-P