Import Administration
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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                                [Order No. 400] 
                                  53 FR 50986 
                               December 19, 1988 
   Resolution and Order Approving the Application of the Puget Sound 
Foreign-Trade Zone Association for a Special-Purpose Subzone for Tacoma 
Boatbuilding Co. in Tacoma, WA 
TEXT: Proceedings of the Foreign-Trade Zones Board, Washington, DC  
Resolution and Order 
   Pursuant to the authority granted in the Foreign-Trade Zones Act of June
18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board has
adopted the following Resolution and Order: 
   The Board, having considered the matter, hereby orders:  
   After consideration of the application of the Puget Sound Foreign-Trade
Zone Association, grantee of Foreign-Trade Zone 86, filed with the Foreign-
Trade Zones Board (the Board) on January 27, 1988, requesting special-
purpose subzone status for the shipyard of Tacoma Boatbuilding Company in 
Tacoma, Washington, within the Tacoma Customs port of entry, the Board, 
finding that the requirements of the Foreign-Trade Zones Act, as amended, 
and the Board's regulations would be satisfied, and that the proposal would
be in the public interest, if approval is subject to certain conditions, 
approves the application subject to the following conditions: (1) any steel
mill products including steel plate, angles, shapes, channels, rolled 
sheet stock, bars, pipes and tubes, classified under Schedule 6, Part 2, 
Subp. B, TSUS, and not incorporated under merchandise otherwise classified,
and which is used in manufacturing shall be subject to Customs duties in 
accordance with applicable law, if the same item is then being produced by
a domestic steel mill; and (2) in addition to the annual report, Tacoma 
Boatbuilding Company shall advise the Board's Executive Secretary as to 
significant new contracts, with appropriate information concerning foreign
purchases otherwise dutiable, so that the Board may consider whether any 
foreign dutiable items are being imported for manufacturing in the subzone 
primarily because of subzone status and whether the Board should consider 
requiring Customs duties to be paid on such items. 
   The Secretary of Commerce, as Chairman and Executive Officer of the 
Board, is hereby authorized to issue a grant of authority and appropriate 
Board Order.  
Grant of Authority to Establish a Foreign-Trade Subzone for the Tacoma 
Boatbuilding Company Shipyard in Tacoma, Washington 
   Whereas, by an Act of Congress approved June 18, 1934, an Act "To provide
for the establishment, operation, and maintenance of foreign-trade zones in 
ports of entry of the United States, to expedite and encourage foreign 
commerce, and for other purposes," as amended (19 U.S.C. 81a-81u) (the 
Act), the Foreign-Trade Zones Board (the Board) is authorized and empowered 
to grant to corporations the privilege of establishing, operating, and 
maintaining foreign-trade zones in or adjacent to ports of entry under the 
jurisdiction of the United States;   

   Whereas, the Board's regulations (15 CFR 400.304) provide for the 
establishment of special-purpose subzones when existing zone facilities 
cannot serve the specific use involved, and where a significant public 
benefit will result;  

   Whereas, the Puget Sound Foreign-Trade Zone Association, grantee of 
Foreign-Trade Zone No. 86, has made application (filed January 27, 1988, FTZ
Docket 7-88, 53 FR 3907) in due and proper form to the Board for authority 
to establish a special-purpose subzone at the shipyard of Tacoma 
Boatbuilding Company in Tacoma, Washington; 
   Whereas, notice of said application has been given and published, and 
full opportunity has been afforded all interested parties to be heard; and  
   Whereas, the Board has found that the requirements of the Act and the 
Board's regulations would be satisfied if approval is subject to the 
conditions stated in the resolution accompanying this action; 
   Now, Therefore, in accordance with application filed January 27, 1988, 
the Board hereby authorizes the establishment of a subzone at the shipyard 
of Tacoma Boatbuilding Company, designated on the records of the Board as 
Foreign-Trade Subzone No. 86A at the location mentioned above and more 
particularly described on the maps and drawings accompanying the 
application, said grant of authority being subject to the provisions and 
restrictions of the Act and the regulations, and those stated in the 
resolution accompanying this action, including the requirement that foreign
basic steel mill products shall be subject to Customs duties prior to 
admission into the subzone if the same item is then being produced by a 
domestic mill, and also to the following express conditions and limitations:
   Activation of the subzone shall be commenced within a reasonable time 
from the date of issuance of the grant, and prior thereto, any necessary 
permits shall be obtained from Federal, State, and municipal authorities. 
   Officers and employees of the United States shall have free and 
unrestricted access to and throughout the foreign-trade subzone in the 
performance of their official duties. 
   The grant shall not be construed to relieve responsible parties from 
liability for injury or damage to the person or property of others 
occasioned by the construction, operation, or maintenance of said subzone, 
and in no event shall the United States be liable therefor. 
   The grant is further subject to settlement locally by the District 
Director of Customs and District Army Engineer with the Grantee regarding 
compliance with their respective requirements for the protection of the 
revenue of the United States and the installation of suitable facilities. 
   In witness whereof, the Foreign-Trade Zone Board has caused its name to
be signed and its seal to be affixed hereto by its Chairman and Executive 
Officer or his delegate at Washington, DC, this 6th day of December, 1988,
pursuant to Order of the Board. 
   Foreign-Trade Zones Board. 
Jan W. Mares, 
   Assistant Secretary of Commerce For Import Administration, Chairman, 
Committee of Alternates. 
John J. Da Ponte, Jr., 
   Executive Secretary.   
[FR Doc. 88-29114 Filed 12-16-88; 8:45 am]