[Federal Register: April 7, 1998 (Volume 63, Number 66)]
[Notices]               
[Page 16961-16962]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ap98-38]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 15-98]

 
Foreign-Trade Zone 92--Pascagoula, MS, Request for Manufacturing 
Authority, Friede Goldman International, Inc., (Shipbuilding/Offshore 
Drilling Platforms)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by Greater Gulfport/Biloxi Foreign Trade Zone, Inc., 
grantee of FTZ 92, pursuant to Sec. 400.32(b)(1) of the Board's 
regulations (15 CFR Part 400), requesting authority on behalf of Friede 
Goldman International, Inc. (FGI) and its subsidiary HAM Marine, Inc., 
for the manufacture, refurbishment, and repair of ships, offshore oil 
and gas drilling rigs, and other marine vessels under FTZ procedures 
within FTZ 92. It was formally filed on March 27, 1998.
    FGI operates an 85-acre facility (1,200 employees) within FTZ 92-
Site 5 (Greater Gulfport/Biloxi Foreign Trade Zone, Inc.) for the 
manufacture, refurbishment, and repair of ships, offshore oil and gas 
drilling rigs, and other marine vessels (HTSUS headings 8901, 8902, 
8904, 8905, or 8906). Currently, components purchased from foreign 
sources comprise 30 percent of the finished product's value, including 
a semi-finished hull and superstructure. On future projects, foreign 
content is expected to range from 30 to 70 percent of the finished 
products' value. The duty rates on the imported components currently 
range from free to 15.2 percent.
    This application requests authority to allow HAM Marine to conduct 
the activity under FTZ procedures, subject to the ``standard shipyard 
restriction'' applicable to foreign-origin steel mill products, which 
requires that full duties be paid on such items.
    FTZ procedures would exempt HAM Marine from Customs duty payments 
on the foreign components used in export activity (currently 100% of 
shipments). On its domestic sales, the company would be able to choose 
the duty rate that applies to finished oceangoing vessels (duty free) 
for foreign components such as the hull and superstructure noted above. 
Foreign-sourced steel mill products, such as pipe and plate, would be 
subject to the full Customs duties applicable to those items. FTZ 
procedures would also exempt certain merchandise from certain ad 
valorem inventory taxes. The application indicates that the savings 
would help improve the facility's international competitiveness.

[[Page 16962]]

    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 address below. The closing 
period for their receipt is June 8, 1998. Rebuttal comments in response 
to material submitted during the foregoing period may be submitted 
during the subsequent 15-day period (to June 22, 1998).
    A copy of the application will be available for public inspection 
at the following location: Office of the Executive Secretary, Foreign-
Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th Street 
& Pennsylvania Avenue, NW, Washington, DC 20230.

    Dated: March 30, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-8979 Filed 4-6-98; 8:45 am]
BILLING CODE 3510-DS-P