[Federal Register: May 18, 1995 (Volume 60, Number 96)]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DEPARTMENT OF COMMERCE
[Dockets 21-95; 22-95]
Foreign-Trade Zone 168--Dallas-Fort Worth, Texas; Foreign-Trade
Zone 196--Fort Worth, Texas; Requests for Expanded Manufacturing
Authority Nokia Mobile Phones Manufacturing (USA), Inc.
Applications have been submitted to the Foreign-Trade Zones Board
(the Board) by the Foreign-Trade Zone Operating Company of Texas,
operator of FTZ 168, and Alliance Corridor, Inc., grantee of FTZ 196,
requesting authority on behalf of Nokia Mobile Phones Manufacturing
(USA), Inc./Nokia Mobile Phones Trading (USA), Inc. (Nokia), to expand
Nokia's authority to manufacture telecommunications products under zone
procedures within FTZ 168 and FTZ 196. The applications were 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). They were formally filed on May 8, 1995.
The FTZ Board authorized Nokia to manufacture cellular phones using
certain foreign components under zone procedures within FTZ 168 and FTZ
196 in late 1994 (Board Orders 728 and 729, 60 FR 2376, 1/9/95).
Nokia is now seeking authority to manufacture a broader range of
telecommunications products at its plants within FTZ 168 and FTZ 196,
including mobile/cellular phones, cellular phone systems equipment,
office and cellular switching systems, telecommunications network
equipment, and related signal and data processing equipment. Many of
the components for the finished cellular phones are currently sourced
from abroad, including printed circuits, integrated circuits,
semiconductors, resistors, capacitors, diodes, crystals, liquid crystal
display panels, switches, speakers, antennas, power supplies,
transformers, batteries, pagers, leather and plastic cases, rubber and
plastic parts, fasteners, iron and steel parts, and packaging
materials. Other components that may also be sourced from abroad
include signal reception and transmission equipment, sound recording
equipment, electric motors, glass envelopes, propylene, cabinets, wire,
cable, and computers/components.
Zone procedures would exempt Nokia from Customs duty payments on
the foreign components used in export production. On its domestic
sales, the company would be able to choose the duty rates that apply to
finished products (free-8.7%). The duty rates on components range from
duty-free to 15 percent. The applications indicate that savings from
zone procedures would help the international competitiveness of Nokia's
In accordance with the Board's regulations, a member of the FTZ
Staff has been appointed examiner to investigate the applications and
report to the Board.
Public comment on the applications 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 July 17, 1995. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to August 1, 1995).
Copies of the applications and the accompanying exhibits will be
available for public inspection at each of the following locations:
U.S. Department of Commerce, District Office, 2050 N. Stemmons Freeway,
Suite 170, Dallas, TX 75258
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW.,
Washington, DC 20230.
Dated: May 10, 1995.
John J. Da Ponte, Jr.,
[FR Doc. 95-12197 Filed 5-17-95; 8:45 am]
BILLING CODE 3510-DS-P