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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
 
                               [Docket No. 31-85 
 
                                  50 FR 40044 
 
                                October 1, 1985 
 
 
Foreign-Trade Zone 35 -- Philadelphia, PA; Application for Subzone, 
Pennsylvania Shipbuilding, Chester 
 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Philadelphia Port Commission, grantee of Foreign-Trade 
Zone 35, requesting special-purpose subzone status for the shipyard of 
Pennsylvania Shipbuilding Company (Penn Ship), Chester, Pennsylvania, 
within the Philadelphia Customs port of entry. The application was 
submitted pursuant to the provisions of the Foreign-Trade Zones Act, as 
amended (19 USC 81a-81u), and the regulations of the Board (15 CFR Part 
400). It was formally filed on September 11, 1985.  
 
   Penn Ship is a second-tier subsidiary of Capital Marine Corporation. Its 
shipyard covers 185 acres at Foot of Morton Avenue, Chester, some 20 miles
south of Philadelphia. The facility is used to design, construct, convert 
and repair vessels for military and commercial uses, employing 1400 
persons. Current contracts involve the converting of 2 SL-7 ships to 
TAKRX fast logistic ships for the Navy; maintenance of 2 MARAD Cargo 
ships, and repair of a foreign tanker. Bids have been made on the 
construction of 2 clean-product tankers. Some 10 percent of the value 
TAKRX project and 80 percent of the material value of the clean product 
tankers involves imported components, including engines, generators, 
pumps, propellers, compressors, heat exchanges, anchors, chain, gears, 
valves, steel plate and structural shapes, steel pipe and tubes, copper 
pipes, deck machinery, switchboard and control panels. 
 
   Zone procedures will help Penn Ship reduce costs on its current orders 
and compete internationally for new contracts. The benefits stem from the 
fact that most of the imported components are subject to significant duties 
while the finished products, as oceangoing vessels, are duty-free. In 
accordance with the Board's regulations, an examiners committee has been 
appointed to investigate the application and report to the Board. The 
committee consists of: John J. Da Ponte, Jr. (Chairman), Director, Foreign-
Trade Zones Staff, U.S. Department of Commerce, Washington, DC 20230; 
Edward A. Goggin, Assistant Regional Commissioner, U.S. Customs Service, 
Northeast Region, 100 Summer St., Boston, MA 02110; and Lt. Colonel Ralph 
V. Locario, District Engineer, U.S. Army Engineer District Philadelphia, 
2nd & Chestnut Streets, Philadelphia, PA 19106.  
 
   Comments concerning the proposed subzone are invited in writing from 
interested parties. They should be addressed to the Board's Executive 
Secretary at the address below and postmarked an or before October 30, 
1985.  
 
   A copy of the application is available for public inspection at each of 
the following locations: 
 
 
U.S. Dept. of Commerce District Office, 
9448 Federal Bldg., 
600 Arch Street,  
Philadelphia, PA 19106 
 
 
Office of the Executive Secretary, 
Foreign-Trade Zones Boards, 
U.S. Department of Commerce, Room 1529, 
14th and Pennsylvania, NW, 
Washington, DC 20230  
 
   Dated: September 24, 1985. 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.   
[FR Doc. 85-23406 Filed 9-30-85; 8:45 am] 
 
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