[Federal Register Volume 76, Number 74 (Monday, April 18, 2011)]
[Notices]
[Pages 21702-21703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9325]


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 DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 27-2011]


Foreign-Trade Subzone 124B; Application for Expansion; North 
American Shipbuilding, LLC (Shipbuilding), Houma, LA

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the South Louisiana Port Commission, grantee of FTZ 124, 
on behalf of North American Shipbuilding, LLC (NAS), operator of 
Subzone 124B at NAS' shipbuilding facilities in Larose, Houma, and Port 
Fourchon, Louisiana, requesting authority to expand the subzone include 
a new site in Houma. The application was submitted pursuant to the 
provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-
81u), and the Board's regulations (15 CFR part 400). It was formally 
filed on April 8, 2011.
    Subzone 124B was approved by the Board in 1991 with authority 
granted for the construction and repair of oceangoing vessels at NAS' 
shipyard (Site 1) (14 acres) located at 800 Industrial Park Road on the 
Intercoastal Waterway in Larose (LaFourche Parish), Louisiana (Board 
Order 539, 56 FR 56627, 11-6-2001). The subzone was subsequently 
expanded to include two additional shipbuilding facilities: Site 2 (27 
acres)--208 North American Court (``North American Fabricators, LLC''), 
Houma (Terrebonne Parish); and, Site 3 (26 acres)--106 9th Street (``C-
Port, LLC''), Port Fourchon (LaFourche Parish) (Board Order 1021, 64 FR 
7854, 2-17-1999). The facilities (1,437 employees) are used to 
construct, convert, and repair oceangoing vessels for commercial, 
research, and government customers. Components sourced from abroad 
include propulsion units, controllable pitch propellers, dynamic 
positioning systems, safety and firefighting equipment, centrifuges, 
compartment doors, electronic equipment, and guide rollers (duty rate 
range: Free-6.0%).
    The applicant is now requesting authority to expand the subzone to 
include a new shipbuilding facility (proposed Site 4) located at 352 
Dickson Road (``LaShip, LLC'') in Houma. The application indicates that 
the facility will conduct production activity similar to that which 
occurs at NAS' existing subzone facilities. The applicant also requests 
that the scope of FTZ manufacturing authority be expanded to include 
additional foreign-sourced components to be used in FTZ production 
activity. New components to be sourced from abroad (representing 45% of 
the value of the finished vessels) include: winches, steering gears, 
motors, generators, structural components of iron, doors, tefrotex 
(ethylene-vinyl acetate), floor coatings, rock wool/mineral wool, 
wooden furniture, seal rings, pressure reduction valves, man holes, 
ladders, pumps, and vibration control dampeners (duty rate range: Free-
6.5%). The application indicates that the company will not admit any 
foreign-origin steel mill products to the proposed subzone site for use 
in FTZ manufacturing activity. Expanded FTZ procedures could continue 
to exempt NAS from customs duty payments on the additional foreign-
origin components used in production for export. On its domestic 
shipments, the company would be able to elect the duty rate that 
applies to finished oceangoing vessels (free) for the additional 
foreign-origin inputs noted above. Customs duties also could possibly 
be deferred or reduced on foreign status production equipment. NAS 
would also be exempt from duty payments on foreign inputs that become 
scrap during the production process. The production activity under FTZ 
procedures would continue to be subject to the ``standard

[[Page 21703]]

shipyard restriction'' applicable to foreign-origin steel mill products 
(e.g., angles, pipe, plate), which requires that all applicable duties 
be paid on such items.
    In accordance with the Board's regulations, Pierre Duy of the FTZ 
Staff is designated examiner to evaluate and analyze the facts and 
information presented in the application and case record and to report 
findings and recommendations 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 June 17, 2011. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to July 5, 2011.
    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 and in the ``Reading Room'' section of the 
Board's Web site, which is accessible via http://www.trade.gov/ftz. For 
further information, contact Pierre Duy at <a href="/cdn-cgi/l/email-protection#36665f534444531872434f76424457525318515940"><span class="__cf_email__" data-cfemail="0e5e676b7c7c6b204a7b774e7a7c6f6a6b20696178">[email protected]</span></a> or 
(202) 482-1378.

    Dated: April 8, 2011.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2011-9325 Filed 4-15-11; 8:45 am]
BILLING CODE 3510-DS-P


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