[Federal Register Volume 63, Number 76 (Tuesday, April 21, 1998)]
[Notices]
[Page 19707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10571]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 21-98]


Foreign-Trade Zone 226--Merced County, CA, Request for 
Manufacturing Authority Grundfos Manufacturing Corporation (Industrial/
Commercial Pumps)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Board of Supervisors of the County of Merced, 
California, grantee of FTZ 226, pursuant to Sec. 400.28(a)(2) of the 
Board's regulations (15 CFR part 400), requesting authority on behalf 
of Grundfos Manufacturing Corporation (Inc.)(GMC)(a subsidiary of 
Grundfos International, Denmark) to manufacture industrial and 
commercial pumps under FTZ procedures, subject to restriction, within 
FTZ 226. It was formally filed on April 14, 1998.
    The GMC plant (243,000 sq. ft.) is located within Site 8 of FTZ 226 
at 5900 East Shields Avenue, Airways East Business Park, in Fresno, 
California. The GMC plant (400 employees) is used to produce liquid 
pumps for residential, agricultural, and industrial uses, including 
circulating pumps, multi-stage centrifugal pumps, submersible water 
pumps, and environmental monitoring well pumps. End uses include 
heating systems, environmental sampling, car washes, refineries, fire 
protection, ground water pumping. Components and materials sourced from 
abroad (representing about 70% of all parts consumed in manufacturing) 
include: lubricating oils, articles of plastic/rubber, thermoplastic 
resins, corrugated boxes, adhesive labels, ceramic articles, stainless 
steel strips, stainless/alloy steel shafts, flanges, pipe fittings, 
fasteners, springs, parts of pumps, housings, stators, rotors, 
bearings, seals/gaskets, sleeves, bushings, blades, impellers, valves 
and seats, couplings, electric motors, transformers, capacitors, 
resistors, voltage limiters, relays, switches, cable, terminal boxes, 
and copper wire (duty rate range: free-6.4%). The application indicates 
a willingness to accept a restriction requiring that all foreign-origin 
stainless steel mill products mentioned above shall be entered for 
consumption with Customs duties paid prior to admission to FTZ 226. 
Some 25 percent of the plant's shipments are exported.
    FTZ procedures would exempt GMC from Customs duty payments on the 
foreign components (except stainless steel mill products) used in 
export production. On its domestic sales, GMC would be able to choose 
the duty rates during Customs entry procedures that apply to finished 
pumps (0.6%) for the foreign inputs noted above, except stainless steel 
mill products. The request indicates that the savings from FTZ 
procedures would help improve the plant's 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 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 22, 1998. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to July 6, 1998).
    A copy of the application and the accompanying exhibits will be 
available for public inspection at the following location: Office of 
the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of 
Commerce, Room 3716, 14th Street & Pennsylvania Avenue, NW., 
Washington, DC 20230-0002.

    Dated: April 14, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-10571 Filed 4-20-98; 8:45 am]
BILLING CODE 3510-DS-P