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Foreign-Trade Zones Board
[Docket 44-96]

Foreign-Trade Zone 202--Los Angeles, CA Application for Subzone
California Steel Industries, Inc. (Steel Mill Products) Fontana, CA

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Board of Harbor Commissioners of the City of Los Angeles, California, grantee of FTZ 202, requesting special-purpose subzone status for the steel mill products manufacturing facilities of California Steel Industries, Inc. (CSI), in Fontana, California. 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 May 24, 1996.

CSI is a joint venture of Kawasaki Steel Holdings (USA), Inc., subsidiary of Kawasaki Steel, Ltd. (Japan), and Rio Doce, Ltd., subsidiary of Companhia Vale do Rio Doce (Brazil).

The CSI steel mill (370 acres) is located at 14000 San Bernadino Avenue, Fontana, California, some 65 miles west of the Los Angeles harbor area. The facilities (1000 employees) consist of a hot-roll mill, cold-roll mill, pickling line, galvanizing mill, and pipe mill. They are used to produce hot- and cold-rolled steel sheet, galvanized sheet and iron or steel pipe (HTS #7206, #7208-7210). The primary material inputs are semifinished steel slabs (HTS #7207.12.0050). Currently some 80 percent of the slabs are purchased from foreign sources, though the company is considering the production of slabs on site as a long-term goal. Foreign materials would be admitted in privileged foreign status (19 CFR 146.41). Some 4 percent of the finished steel mill products would be exported.

Zone procedures would exempt CSI from Customs duty payments on the foreign materials used in production for export (replacing duty drawback procedures). On domestic sales, the company would be able to defer Customs duties until finished products are shipped from the plant. The company is also seeking an exemption from Customs duties on scrap and waste that result from the production process (approx. 4-6%). The application indicates that the savings from zone procedures would help improve the international competitiveness in commodity-grade steel markets of a steel mill located in the western United States.

In accordance with the Board's regulations, a member of the FTZ Staff has been appointed examiner to investigate the application and report to the Board.

Public comment is invited from interested parties. Submissions (original and 3 copies) shall be addressed to the Board's Executive Secretary at the address below. The closing period for their receipt is August 5, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period (to [75 days from the date of publication]).

A copy of the application and accompanying exhibits will be available for public inspection at each of the following locations:

U.S. Department of Commerce District Office, 11000 Wilshire Blvd., Room 9200, Los Angeles, California 90024 Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, N.W., Washington, DC 20230.

Dated: May 29, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-14157 Filed 6-5-96; 8:45 am]