[Federal Register Volume 73, Number 86 (Friday, May 2, 2008)]
[Notices]
[Page 24219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-9716]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 25-2008]


Foreign-Trade Zone 76 Bridgeport, CT, Request for Manufacturing 
Authority, Derecktor Shipyards Conn, LLC (Cruise Ships, Ferries, and 
Yachts)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Bridgeport Port Authority, grantee of FTZ 76, 
pursuant to Section 400.28(a)(2) of the Board's regulations (15 CFR 
Part 400), requesting authority on behalf of Derecktor Shipyards Conn, 
LLC (DSC), to construct and repair passenger vessels under FTZ 
procedures within FTZ 76. It was formally filed on April 23, 2008.
    The DSC shipyard (250 employees, 23 acres, capacity: up to 3 
vessels/year) is located at 837 Seaview Avenue within the Bridgeport 
Regional Maritime Complex (FTZ Site 4 - Parcel B). Under FTZ 
procedures, DSC would construct and repair cruise ships, excursion 
boats, ferries, luxury motor and sail yachts, and motorboats (HTSUS 
8901.10, 8903.91, 8903.92) for domestic and international customers. 
Foreign components that would be used at the shipyard (up to 40% of 
finished vessel value) include: propellers and shafts, steering 
systems, lighting equipment, anchors, rigging equipment, mooring lines 
(will be admitted in domestic (duty paid) status), cleats, ovens and 
ranges, interior fittings and furnishings, decorative film/
applications, masts and spars, seats, elastomeric polyurethanes, 
insulation, cranes, winches, pulleys, swim platforms, stairs, bilge 
pumps, aluminum tiles/planks/extrusions/sheets, engines, propulsion 
systems, stern drives, flange couplings, clutches, shafts, anti-fouling 
systems, marine doors and windows, command levers, hull isolation 
mounts, cutlery, bed linens (will be admitted in domestic (duty-paid) 
status), and valves (thermostatic, hydraulic) (duty rate range: free 
6.5%, 2.2[cent]/kg+5%). The request indicates that DSC will not admit 
any foreign-origin steel mill products to the zone for use in FTZ 
manufacturing activity.
    FTZ procedures would exempt DSC from customs duty payments on the 
foreign components (except steel mill products) used in export 
activity. On its domestic sales, the company could be able to choose 
the duty rate that applies to finished oceangoing vessels (duty free, 
1.5%) for the foreign-origin components noted above. Duties could 
possibly be deferred or reduced on foreign status production equipment 
admitted by DSC to the zone. 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.
    In accordance with the Board's regulations, Pierre Duy of the FTZ 
Staff is 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 following address: Office of the Executive Secretary, 
Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW, 
Washington, DC 20230-0002. The closing period for receipt of comments 
is July 1, 2008. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to July 16, 2008.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
the address listed above. For further information, contact Pierre Duy 
at: [email protected], or (202) 482-1378.

    Dated: April 24, 2008.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E8-9716 Filed 5-1-08; 8:45 am]
BILLING CODE 3510-DS-S