[Federal Register Volume 69, Number 171 (Friday, September 3, 2004)]
[Notices]
[Pages 53885-53886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20152]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 40-2004]


Foreign-Trade Zone 153--San Diego, CA; Application for Subzone 
Status; Callaway Golf Company Facilities (Golf Clubs), Carlsbad, CA

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the City of San Diego, California, grantee of FTZ 153, 
requesting special-purpose subzone status for the golf club 
manufacturing facilities of Callaway Golf Company (Callaway), located 
in Carlsbad, California. 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 August 27, 2004.
    The proposed subzone would include Callaway's manufacturing and 
warehousing facilities at four sites in Carlsbad (San Diego County), 
California: Site 1 (four buildings)'' Building 1 (manufacturing/7 
acres/128,000 sq.ft. under roof)--2285 Rutherford Road, located 
adjacent to the McClellen-Palomar Airport; Building 2 (2 acres/38,000 
sq.ft.)--5928 Pascal Court, located immediately to the west of Building 
1; Building 3 (manufacturing, warehousing/5 acres/73,000 sq.ft.)--5960 
Pascal Court, located to the rear of Building 2; Building 8 (2 acres/
20,000 sq.ft.)--2261 Rutherford Road, located immediately to the west 
of Building 2; Site 2--Headquarters Building (manufacturing/11 acres/
245,000 sq. ft.)--2180 Rutherford Road, located about 1,500 feet to the 
west of Site 1; Site 3 (three buildings)--Building 5 (research and 
development/5 acres/63,000 sq.ft.)--5858 Dryden Place, located about 
three-fourths of a mile southwest of Site 2; and, Building 6 (testing 
and development/9 acres/10,000 sq.ft.)--5860 Dryden Place, located 
adjacent to Building 5; and, Grounds Keeping Building (960 sq.ft.)--
5825 Dryden Place; Site 4--Building 7 (warehousing/9 acres/150,000 
sq.ft./leased)--2081 Faraday Avenue, located approximately 900 feet to 
the west of Site 2.
    The facilities (2,000 employees) are used to produce golf clubs 
(drivers/fairway woods, irons, putters) and to distribute U.S. and 
foreign-made golf clubs, parts of golf clubs, and accessories for 
export and the U.S. market. The golf club manufacturing process at the 
facilities involves machining and assembly, and could produce up to 13 
million units annually. Components purchased from abroad (about 35% of 
finished golf club value) used in manufacturing and production may 
include: parts of golf clubs (heads and parts of heads, shafts, grips, 
head covers, divot tools), glues, adhesives, plastic plugs and 
ferrules, leather golf bags, golf bags of textile materials (Textile 
Categories 369 and 870; would be admitted under privileged foreign (PF) 
status (19 CFR 146.41)), name plates, medallions, and plates (duty rate 
range: free--20%, ad valorem). Additional foreign-sourced components 
and accessories to be distributed to the U.S. market and export 
include: golf clubs, parts of golf clubs, golf balls, plugs, ferrules, 
leather luggage/briefcases/shoe cases/golf gloves/duffel bags, leather 
golf bags, umbrellas, metal boxes and lids, name plates, table 
decorations of iron or steel; and, the following items classified 
within Textile Categories 331/631/831, 359/459/659/859, 363/369/669, 
670/870: golf bags of textile materials, pouches, hats/caps/visors, 
towels, and golf gloves of textile materials (to be admitted under PF 
status).
    FTZ procedures would exempt Callaway 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 golf clubs (4.4%) for the 
foreign-sourced inputs noted above. Callaway would be able to defer 
Customs duty payments on

[[Page 53886]]

the foreign-origin golf clubs and accessories that would be admitted to 
the proposed subzone for U.S. distribution. 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 November 2, 2004. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period (to November 17, 
2004).
    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 230, 6363 Greenwich Drive, San Diego, CA 
92122.

    Dated: August 27, 2004.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 04-20152 Filed 9-2-04; 8:45 am]
BILLING CODE 3510-DS-P