[Federal Register Volume 73, Number 199 (Tuesday, October 14, 2008)]
[Notices]
[Pages 60677-60678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-24327]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 56-2008]


Foreign-Trade Zone 20--Suffolk, VA; Application for Subzone 
Status; STIHL Incorporated (Outdoor Power Products Manufacturing and 
Distribution), Virginia Beach, VA

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Virginia Port Authority, grantee of Foreign-Trade 
Zone (FTZ) 20, requesting special-purpose subzone status for the 
outdoor power products manufacturing and distribution facilities of 
STIHL Incorporated (STIHL) located in Virginia Beach, Virginia. 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 October 3, 2008.
    The STIHL facilities are located at 536 Viking Drive, 2525 
International Parkway, 601 Central Drive, 825 London Bridge Road, and 
528 Viking Drive, in Virginia Beach (87 acres, 9 buildings, 2,000 
employees). The facilities are used for the manufacture and 
distribution activities of various types of gas-powered and electric 
outdoor products and their parts (blowers, trimmers, sprayers, cutters, 
cultivators and chainsaws; HTSUS numbers 8414.59, 8467.29, 8424.81, 
8467.89, 8432.29, 8467.22, and 8467.81). At full capacity the STIHL 
facility can produce up to 4 million units annually. Imported 
components and raw materials account for approximately 25 percent of 
the finished products' value. Parts and components that may be imported 
into the proposed subzone for manufacturing include: petroleum oils 
(2710.11); bituminous oils (2710.19); carbides

[[Page 60678]]

(2849.90); glues and adhesives (3506.91); pickling preparations 
(3810.90); organic solvents and thinners (3814.00); polyethylene 
(3901.20); propylene copolymers (3902.30); polyamides (3908.10); 
polyurethanes (3909.50); silicones (3910.00); petroleum resins 
(3911.90); monofilament plastics (3916.90); plastic tubes, pipes and 
hoses (3917.21, 3917.22, 3917.23, 3917.29, 3917.31, 3917.32, 3917.33, 
3917.39, 3917.40); self-adhesive or non self-adhesive plates, sheets, 
film, foil, tape and strip (3919.10, 3919.90, 3920.10, 3920.62, 
3920.92, 3921.11, 3921.90); plastic boxes, cases, crates, stoppers, 
lids, caps and other closures (3923.10, 3923.21, 3923.29, 3923.30, 
3923.40, 3923.50, 3923.90, 3926.90); rubber tubes, pipes and hoses 
(4009.11, 4009.12, 4009.21, 4009.22, 4009.31, 4009.32, 4009.41, 
4009.42); erasers (4016.92); vulcanized rubber gaskets, washers, seals 
and other articles (4016.93, 4016.99); plaiting materials (4601.29); 
synthetic twine, cordage, ropes and cables (5607.50); felt filters 
(5911.90); harnesses (6307.90); iron or steel tubes, flanges and pipe 
fittings (7307.21, 7307.91, 7307.92, 7307.99); iron and steel self-
tapping screws, bolts, nuts, screws, screw hooks, rivets, cotters, 
cotter pins and washers (7318.14, 7318.15, 7318.16, 7318.19, 7318.21, 
7318.24, 7318.29); leaf springs, leaves and helical springs (7320.10, 
7320.20, 7320.90); iron or steel wire and other articles (7326.20, 
7326.90); copper tube and pipe (7411.29); copper alloy tube and pipe 
(7412.20); copper-stranded wire and cable (7413.00); copper nails, 
tacks, drawing pins and staples (7415.21, 7415.29, 7415.33, 7415.39); 
aluminum foil (7607.20); aluminum tubes and pipes (7608.20); aluminum 
stranded wire, cable and plaited bands (7614.10, 7614.90); aluminum 
nails, tacks, staples and other articles (7616.10, 7616.99); zinc 
articles (7907.00); tungsten powders (8101.10); hand tools (8205.40, 
8205.59); iron, steel or other base metal flexible tubing (8307.10, 
8307.90); internal combustion engine parts (8409.91); fuel, lubricating 
or cooling pumps and their parts (8413.30, 8413.91); air or vacuum 
pumps and their parts (8414.59, 8414.90); oil or fuel filters (8421.21, 
8421.23); fire extinguishers, spray guns, steam or sand blasting 
machines and their parts (8424.81, 8424.90); pressure-reducing valves, 
check valves, oleo-hydraulic valves, safety or relief valves and their 
parts (8481.10, 8481.20, 8481.30, 8481.40, 8481.80, 8481.90); ball 
bearings, roller bearings and their parts (8482.10, 8482.20, 8482.30, 
8482.40, 8482.50, 8482.80, 8482.91, 8482.99); transmission shafts and 
cranks, bearing housings, torque converters, flywheels and pulleys, 
clutches and shaft couplings, toothed wheels and chain sprockets 
(8483.10, 8483.30, 8483.40, 8483.50, 8483.60, 8483.90); gaskets 
(8484.10, 8484.20, 8484.90); non-electrical machinery parts (8487.90); 
electric motors and generators (8501.10, 8501.20, 8501.31, 8501.32, 
8501.33, 8501.34, 8501.40, 8501.51, 8501.52, 8501.53, 8501.61, 8501.62, 
8501.63, 8501.64); electric generating sets (8502.20); parts for 
electric motors, generators and generator sets (8503.00); primary 
cells, batteries and their parts (8506.80); lead-acid storage batteries 
and their parts (8507.10, 8507.20, 8507.30, 8507.40, 8507.80, 8507.90); 
spark plugs (8511.10); ignition magnetos, magneto-dynamos and magnetic 
flywheels (8511.20); distributors and ignition coils (8511.30); 
generators and their parts (8511.50, 8511.90); portable electric lamps 
(8513.10); electrical switches, relays, fuses, plugs, sockets, lamp-
holders, circuit breakers and junction boxes and their parts (8535.90, 
8536.10, 8536.20, 8536.30, 8536.41, 8536.49, 8536.50, 8536.69, 8536.90, 
8538.90); electric filament or discharge lamps and their parts 
(8539.22, 8539.29, 8539.31); cathode ray tubes and their parts 
(8540.89); coaxial cable and coaxial electric conductors with or 
without connectors (8544.20, 8544.42, 8544.49, 8544.60); non-propelled 
trailers and semi-trailers and their parts (8716.80, 8716.90); 
pneumatic hand tools (8467.11); and, vacuum cleaners and their parts 
(8508.11). The duty rates on the imported components range from duty-
free to 12.5 percent.
    This application requests authority for STIHL to conduct the 
manufacturing activity under FTZ procedures, which could exempt the 
company from customs duty payments on the imported components used in 
export production. Approximately 40 percent of production is exported. 
On domestic sales, the company could defer duty payment and choose the 
lower duty rate (duty-free to 4.7 percent) that applies to the finished 
products for the imported components used in manufacturing. STIHL may 
also realize savings related to direct delivery and weekly customs 
entry procedures. The company would also realize savings on the 
elimination of duties on materials that become scrap/waste during 
manufacturing. The application indicates that the FTZ-related savings 
would improve the plant's international competitiveness.
    In accordance with the Board's regulations, Christopher Kemp 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 address listed below. The closing period for their 
receipt is December 15, 2008. Rebuttal comments in response to material 
submitted during the foregoing period may be submitted during the 
subsequent 15-day period (to December 29, 2008).
    A copy of the application and accompanying exhibits will be 
available at each of the following addresses: Virginia Port Authority, 
600 World Trade Center, Norfolk, VA 23510; and, Office of the Executive 
Secretary, Foreign-Trade Zones Board, Room 2111, U.S. Department of 
Commerce, 1401 Constitution Avenue, NW., Washington, DC 20230. For 
further information contact Christopher Kemp at [email protected] or (202) 482-0862.

    Dated: October 6, 2008.
Andrew McGilvray,
Executive Secretary.
 [FR Doc. E8-24327 Filed 10-10-08; 8:45 am]
BILLING CODE 3510-DS-P