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[Federal Register Volume 66, Number 11 (Wednesday, January 17, 2001)]
[Notices]
[Page 3984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1384]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 1-2001]

Foreign-Trade Zone 82--Mobile, AL; Application for Subzone Status 
Austal USA, LLC (Shipbuilding and Repair)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the City of Mobile, Alabama, grantee of FTZ 82, 
requesting special-purpose subzone status for the shipbuilding facility 
of Austal USA LLC (Austal) [an Austal Holdings, Inc. (of Australia)/
Bender Shipbuilding, Inc. joint venture] in Mobile, Alabama. 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 January 9, 2001.
    The Austal shipyard (13 acres, 200,000 sq.ft.) is located at 100 
Dunlap Drive in Mobile, Alabama. The facility (150 employees) is used 
for the construction of aluminum commercial and military vessels for 
domestic and international customers. Foreign components that may be 
used at the Austal shipyard (representing up to 9% of vessel value) 
include propulsion units, engines and control systems, generators, 
pumps, air-conditioning systems, pipes, iron and steel mill products, 
aluminum bars/rods/profiles/plates/sheets/wire/tanks/containers, 
solenoids, valves, multimeters, signaling equipment, articles of 
rubber, twine, glass, prefabricated structures, stoves/ranges, electric 
motors, navigation and electronic equipment, propellers, transmission 
shafts, lighting and electrical equipment, panels, consoles, printed 
circuit assemblies, regulating/controlling equipment, and telephonic 
apparatus (2000 duty rate range: free--14.9%, ad valorem).
    FTZ procedures would exempt Austal from Customs duty payments on 
the foreign components (except steel mill products) used in export 
activity. On its domestic sales, the company would be able to choose 
the duty rate that applies to finished oceangoing vessels (duty free) 
for the foreign-origin components noted above. The manufacturing 
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 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, 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 March 19, 2001. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to April 3, 2001).
    A copy of the application will be available for public inspection 
at the following locations:

Office of the Port Director, U.S. Customs Service, Suite 3004, 150 
North Royal Street, Mobile, AL 36602

Office of the Executive Secretary, Foreign-Trade Zones Board, room 
4008, U.S. Department of Commerce, 14th Street & Constitution Avenue, 
NW., Washington, DC 20230

    Dated: January 9, 2001.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 01-1384 Filed 1-16-01; 8:45 am]
BILLING CODE 3510-DS-P
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