[Federal Register Volume 72, Number 112 (Tuesday, June 12, 2007)]
[Notices]
[Pages 32278-32279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11320]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 21-2007]


Foreign-Trade Zone 65 - Panama City, FL, Application for Subzone 
Status, Eastern Shipbuilding Group, Inc., (Shipbuilding)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Panama City, Florida, grantee of FTZ 65, 
requesting special-purpose subzone status for the shipbuilding 
facilities of Eastern Shipbuilding Group (ESG), in Panama City, 
Florida. 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 
June 5, 2007.
    The proposed subzone would comprise ESG's facilities at two sites 
in Bay County, Florida: Site 1 ``Nelson Street Shipyard'' (27.2 acres/4 
parcels/82,500 sq.ft.) - 2200 Nelson Street, Panama City, Florida; and, 
Site 2 ``Allanton Shipyard'' (142.5 acres, 67,300 sq.ft.) - 13300 
Allanton Road, Panama City, located 15 miles southeast of Site 1. The 
ESG facilities (580 employees) are used for the construction, 
fabrication, and repair of commercial and military oceangoing vessels 
for domestic and international customers. Foreign components that

[[Page 32279]]

may be used at the ESG facilities (representing 25 - 40[percnt] of 
material value) may include plastic tubes/pipes/hoses/fittings/floor 
coverings/seals/gaskets/o-rings, rubber mats/gaskets/o-rings/seals/
knobs/dampeners, carpeting (will be admitted under privileged foreign 
(PF) status (19 CFR Sec.  146.41)), articles of plaster, tableware, 
steel and iron pipe/tube/profiles/casings/fittings, stainless steel 
pipe/tube/flanges, doors, windows, structures, tanks, drums, LNG 
containers, anchors, articles of copper, couplings (of nickel, 
aluminum, lead, zinc, tin), articles of chromium, flexible tubing, 
marine steam turbines, engines (diesel and spark ignition) and parts, 
turbojets, propellers, gas turbines and parts, pumps, compressors, 
fans, air conditioners, furnaces and parts, heat exchange units, 
chillers, water heaters and parts, centrifuges, filters and filtering 
equipment, cranes, trash compactors, valves, bearings (items subject to 
AD/CVD orders will be admitted under PF status), gears, flywheels, 
clutches, parts of transmissions, generators and sets, starters, radio 
transceivers and remote controllers, radar equipment, parts of 
signaling equipment, electric switchgear and control panels, ignition 
wiring sets, compasses, instruments and meters, navigational 
instruments, thermostats, marine chronometers, furniture, and lamps 
(duty rate range: free - 9.0[percnt]; 25[cent]/ea.+3.9[percnt], ad 
valorem; 84[cent]/bbl).
    FTZ procedures would exempt ESG from customs duty payments on the 
foreign components 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 elect the duty rate that 
applies to finished oceangoing vessels (duty free) for the foreign 
components when the vessels are processed for customs entry. 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 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 is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the address below. The closing period for their receipt is 
August 13, 2007. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to August 27, 2007.
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations: 
Office of the Area Port Director, U.S. Customs and Border Protection, 
2831 Talleyrand Avenue, Jacksonville, FL 32206; and, the Office of the 
Executive Secretary, Foreign-Trade Zones Board, Room 2111, U.S. 
Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 
20230-0002.
    For further information, contact Pierre Duy, examiner, at [email protected], or (202) 482-1378.

    Dated: June 5, 2007.
Pierre V. Duy,
Acting Executive Secretary.
[FR Doc. E7-11320 Filed 6-11-07; 8:45 am]
BILLING CODE 3510-DS-S