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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                               [Docket 36-91]

  			Foreign-Trade Zone 65--Panama
               City, FL; Request for Manufacturing Authority
                   Wellstream Corp., Flexible Pipe Plant

                          Thursday, June 27, 1991

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the Panama City Port Authority, grantee of FTZ 65, on behalf of
Wellstream Corporation, requesting authority for the manufacture of
flexible pipe under zone procedures within FTZ 65, Panama City, Florida. it
was filed on June 14, 1991.

The Wellstream facility (202 employees, 150,000 sq. ft.) is located at 1700
C Avenue within the Panama City Port Complex. The plant is used to produce
flexible plastic composite piping, reinforced with steel, primarily for the
offshore oil and gas extraction industry. The pipes range from 2 to 12
inches in size (inside diameter) and have burst pressure ratings of up to
20,000 psi. The piping is produced by covering an interlocked steel carcass
(carbon or stainless) with viscous nylon or a similar compound. Two layers
of flat steel bands are then wrapped to cover the hardened nylon. The final
step in the external application of an extruded polymer, protective jacket.

Currently, components are purchased mainly from domestic sources. However,
Wellstream wishes to improve its competitiveness in seeking foreign
contracts, which may require foreign components. Foreign materials may
include natural and synthetic rubber, non-alloy and stainless steel,
polymers, nylon, and resins. The firm projects that approximately 60
percent of its annual shipments will be exported.

Zone procedures would exempt Wellstream from Customs duty payments on the
foreign components that are used in production for export. On its domestic
sales, the company would be able to choose the duty rate that applies to
finished plastic piping reinforced with steel (HTS#
3917.31/3917/.39--3.1%). The duty rates on foreign materials range from
zero to 11.6 percent. The applicant indicates that zone savings will
improve the plant's international competitiveness.

Comments concerning the application are invited from interested parties.
They should be addressed to the Board's Executive Secretary at the address
below and postmarked on or before August 12, 1991. 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 3716, 
14th Street and Constitution Avenue, NW., 
Washington, DC 20230.

Dated: June 21, 1991.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 91-15354 Filed 6-26-91; 8:45 am]