[Federal Register Volume 70, Number 98 (Monday, May 23, 2005)]
[Notices]
[Pages 29477-29478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10243]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 21-2005]


Foreign-Trade Zone 105--North Kingstown, RI; Request for 
Manufacturing Authority; Southeastern New England Shipbuilding 
Corporation (Shipbuilding)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Rhode Island Economic Development Corporation 
(RIEDC), grantee of FTZ 105, pursuant to Section 400.28(a)(2) of the 
Board's regulations (15 CFR Part 400), requesting authority on behalf 
of Southeastern New England Shipbuilding Corporation (Senesco) to 
construct and repair oceangoing vessels under FTZ procedures within FTZ 
105. It was formally filed on May 16, 2005.
    The Senesco shipyard (450 employees, 31 acres, capacity: up to 4 
vessels/year) is located at 10 MacNaught Street within the Quonset 
Business Park (FTZ Site 2), in North Kingstown, Rhode Island. Under FTZ 
procedures, Senesco would construct and repair tugboats (HTSUS 
8901.90), double-hulled liquid barges (HTSUS 8901.20) and articulating 
tug barges for domestic and international customers. Foreign components 
that would be used at the shipyard (up to 30% of total purchases) 
include: diesel engines (HTSUS 8408.10), stern tubes (8483.30), 
reduction gears (8483.40), shaft grounding systems and seals (8483.90), 
generators (8501.62, 8501.63), overfill alarms (8531.90), tank washing 
machines (8537.10), valve remote operators (8537.10), tank gauging 
systems (8537.10), and ACCU automation/steering systems (8537.10) (duty 
rates: 1.3-4.5%). The request indicates that Senesco will not admit any 
foreign-origin steel mill products to the zone for use in FTZ 
manufacturing activity.
    FTZ procedures would exempt Senesco from Customs duty payments on 
the foreign components (except steel mill products) used in export 
activity. On its domestic sales, the company would be able to choose 
the duty rate that applies to finished oceangoing vessels (duty free) 
for the foreign-origin components noted above. Duties would be deferred 
or reduced on foreign

[[Page 29478]]

production equipment admitted by Senesco to the zone until which time 
it becomes operational. The manufacturing and repair 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 all applicable Customs duties 
be paid on such items. The application indicates that the savings from 
FTZ procedures would help improve the facility's international 
competitiveness.
    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--
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 July 7, 2005. Rebuttal comments 
in response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to July 22, 2005).
    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.

    Dated: May 16, 2005.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 05-10243 Filed 5-20-05; 8:45 am]
BILLING CODE 3510-DS-P