[Federal Register Volume 69, Number 65 (Monday, April 5, 2004)]
[Notices]
[Page 17643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7530]



[[Page 17643]]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board


Proposals to Facilitate the Use of Foreign-Trade Zones by Small 
and Medium-Sized Manufacturers

    As part of the Department of Commerce's manufacturing initiative, 
the Foreign-Trade Zones (FTZ) Board (the Board) has analyzed foreign 
zone programs to determine whether there are features that the Board 
can implement in the U.S. FTZ program to enhance access and reduce the 
program's costs for small and medium-sized manufacturers, thereby 
helping to improve such companies' international competitiveness. Based 
on this analysis, the Board is inviting public comment on two 
proposals. The first proposal involves a procedural change whereby the 
Board would delegate authority to the Board's Executive Secretary for 
decision-making on certain requests for manufacturing authority. The 
second proposal includes enhancements to the Board's pre-application 
counseling procedures and application guidelines for small and medium-
sized manufacturers.
    The proposed delegation of authority would only authorize the 
Board's Executive Secretary to grant temporary or interim authority for 
zone manufacturing. Permanent authority would continue to require full 
Board review. The consideration of all proposals for temporary or 
interim manufacturing (T/IM) authority would take into account the 
Board's existing criteria for manufacturing (see 15 CFR 400.31(b)). 
Prior to making a decision on an application for T/IM authority, the 
Board's Executive Secretary would publish a Federal Register notice 
seeking public comment, and could also contact Department of Commerce 
industry specialists for an assessment of the application. The Board's 
Executive Secretary would retain the discretion to deny any T/IM 
application \1\ if opposition or any other complicating issues or 
concerns arise.
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    \1\ In cases where T/IM authority is denied, or that are 
ineligible for T/IM consideration, the applicant may opt to request 
manufacturing authority through the FTZ Board's standard procedures 
(i.e., evaluation of the proposal by the full Board).
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    Several threshold criteria would need to be met to qualify for 
consideration for T/IM authority \2\. T/IM applications would be 
limited to manufacturing operations within pre-existing FTZ space 
(i.e., within the boundaries of FTZ sites already approved by the Board 
at the time of the T/IM application's submission to the Board), and 
proposals would need to be consistent with government policy and prior 
Board actions and (1) non-complex \3\ in nature and clearly presenting 
no new, complex, or controversial issues or (2) for export only. T/IM 
authority could only be granted for a period of up to two years, 
although circumstances might lead the Board's Executive Secretary to 
impose a stricter time limit on a particular proposal. Finally, the 
Board's Executive Secretary and the FTZ Board would have the authority 
to revisit any approval of T/IM authority should it be warranted by 
policy considerations, including subsequent industry opposition or a 
determination that the activity results in a negative net economic 
effect for the United States.
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    \2\ See footnote 1.
    \3\ Generally expressed in terms of the number of inverted 
tariffs (i.e., instances of imported inputs with higher duty rates 
than the resulting finished products proposed for manufacturing 
under FTZ procedures). After consultations with stakeholders, the 
Board's Executive Secretary would publish guidelines clarifying the 
criteria for consideration of T/IM applications.
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    The proposed enhancements to the pre-application process for small 
and medium-sized manufacturers include: (1) Expanded pre-application 
counseling by the FTZ Board staff; (2) availability of completed sample 
applications to help guide potential applicants; and (3) simplified 
guidelines/formats for small and medium-sized manufacturers applying to 
the FTZ Board to conduct non-complex activity.
    Public comment on this proposal is invited from interested parties. 
We ask that parties fax a copy of their comments, addressed to the 
Board's Executive Secretary, to (202) 482-0002. We also ask that 
parties submit the original of their comments to the Board's Executive 
Secretary at one of 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 St. NW., Washington, DC 20005; or
    2. Submissions Via the U.S. Postal Service: Foreign-Trade-
ZonesBoard, U.S. Department of Commerce, FCB--Suite 4100W, 1401 
Constitution Ave. NW., Washington, DC 20230.
    The closing period for the receipt of public comments is April 30, 
2004. Any questions about this request for comments may be directed to 
the FTZ Board staff at (202) 482-2862.

    Dated: March 29, 2004.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 04-7530 Filed 4-2-04; 8:45 am]
BILLING CODE 3510-DS-P