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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 6-88] 
                                   53 FR 3907 
                               February 10, 1988 
Foreign-Trade Zone 86, Tacoma, WA; Application for Expansion and Request for
Manufacturing of Oil Country Tubular Goods 
TEXT: An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Puget Sound Foreign-Trade Zone Association (PSFTZ), grantee of
FTZ 86, requesting authority to expand the zone at the Port of Tacoma, within
the Tacoma Customs port of entry. The application also requests authority for
operations involving the assembly of oil country tubular goods. It was 
submitted pursuant to the provisions of the Foreign-Trade Zones Act, as 
amended (19 U.S. 81a-81u), and the regulations of the Board (15 CFR Part 
400). It was formally filed on January 25, 1988. 
   The Tacoma zone was approved in July 1983, and covers 638 acres within the
port complex. The requested change would add another 248 acres to the zone 
within the complex. It is being made so that zone users can be located 
throughout the complex, based upon their individual requirements.  
   The request for manufacturing approval is being sought for an assembly 
operation by Kawasaki Thermal Systems, Inc. (KTS). KTS produces insulated oil
country tubular goods, which are used for steam injection in oil field 
reservoirs. KTS purchases outer and inner steel tubing components from Japan
and insulates the inner tubing prior to assembly. The outer tubing is 
dutiable at 8 percent, and the inner tubing carries a rate of 7.8 percent 
based on its molybdenum content. The finished product (tubular goods) is 
apparently dutiable at 7.8 percent.  

   The company plans to export some 75 percent of its production from this
site, and the duty exemption applicable to zone exports will help it compete
for foreign sales. No other manufacturing approvals are being sought as part
of the expansion.  

   In accordance with the Board's regulations, an examiners committee has 
been appointed to investigate the application and report to the Board. The
committee consists of: Joseph Lowry (Chairman), Foreign-Trade Zones Staff, 
U.S. Department of Commerce, Washington, DC 20230; Daniel C. Holland, 
District Director, U.S. Customs Service, Pacific Region, 2039 Federal Office
Bldg., 909 First Ave., Seattle, WA 98174; and Colonel Philip L. Hall, 
District Engineer, U.S. Army Engineer District Seattle, P.O. Box C-3755, 
Seattle, WA 98124-2255.  
   Comments concerning the proposed expansion and manufacturing approval 
are invited in writing from interested parties. They should be addressed to
the Board's Executive Secretary at the address below and postmarked on or 
before March 21, 1988. 
   A copy of the application is available for public inspection at each of
the following locations: 
Office of the Port Director, 
U.S. Customs Service, 
2202 Port of Tacoma Road, 
Tacoma, WA 98421 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, 
14th & Pennsylvania Ave. NW., Room 1529, 
Washington, DC 20230.  
   Dated: February 3, 1988. 
Dennis Puccinelli, 
   Acting Executive Secretary.   
[FR Doc. 88-2828 Filed 2-9-88; 8:45 am]