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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 12-97]

 
Foreign-Trade Zone 18, San Jose, CA, Request for Manufacturing 
Authority, Solectron Corporation Plant (Electronic/Computer/
Telecommunication Equipment), San Jose, California

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by San Jose Distribution Services, operator of FTZ 18, 
pursuant to Sec. 400.32(b)(1)(ii) of the Board's regulations (15 CFR 
part 400), requesting authority on behalf of Solectron Corporation, to 
``kit''/assemble computer/telecommunication subassemblies and products 
within FTZ 18. It was formally filed on March 7, 1997.
    Solectron Corporation is a contract assembler/manufacturer of 
computer/telecommunication subassemblies and products, specializing in 
the production of complex printed circuit boards. Solectron plans to 
use a site (up to 20,000 sq. ft.) within FTZ 18 to conduct a range of 
activities under zone procedures as an adjunct to operations at its 
Milpitas, California, plant. The requested scope of authority for 
manufacturing under zone procedures parallels the range of activity 
conducted at the Milpitas plant.
    Solectron is proposing to ``kit''/assemble a variety of computer/
telecommunication equipment and subassemblies within FTZ 18, including 
printed circuit board assemblies, computers and components, 
telecommunication equipment and components, fax machines and modems.
    Foreign components, which will account for an estimated 40 to 50 
percent of material value, may include printed circuit boards, 
conductors, resistors, transmitters, diodes, transistors, capacitors, 
fuses, circuit breakers, switches, surge suppressors, motor starters, 
modems, facsimile machines and parts, routers and bridgers, computer 
and telecommunications equipment parts. It is estimated that some 40 
percent of the FTZ production would be exported.
    Zone procedures would exempt Solectron from Customs duty payments 
on foreign components used in production for export. On domestic sales, 
the company would be able to choose the duty rate (duty-free to 8.5%, 
with most less than 2.7%) that applies to the finished product. The 
duty rates on foreign components range from duty-free to 9.8% percent. 
The application indicates that zone procedures will improve the plant's 
international competitiveness and will help increase exports.
    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 
May 19, 1997. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to May 2, 1997.
    A copy of the request will be available for public inspection at 
the following locations:

U.S. Department of Commerce, Export Assistance Center, 5201 Great 
American Pkwy., #456, Santa Clara, California 95054
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th and Pennsylvania Avenue, NW., 
Washington, DC 20230

    Dated: March 10, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-6681 Filed 3-17-97; 8:45 am]
BILLING CODE 3510-DS-P