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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 7-88] 
                                   53 FR 3907 
                               February 10, 1988 
Foreign-Trade Zone 86, Tacoma, WA; Application for Subzone Tacoma 
Boatbuilding Co. 
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 special-purpose subzone status for the 
shipyard facilities of Tacoma Boatbuilding Co. (TBC), in Tacoma, Washington,
within the Tacoma Customs port of entry. 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 January 27, 1988.  
   The request involves two separate sites in Tacoma. Site 1 (14 acres) is
operated by TBC on port-owned property at 401 Alexander Avenue in the Port 
of Tacoma Complex. Site 2 (19 acres) is owned and operated by TBC and is 
located at 1840 Marine View Drive, within 2 miles of site 1. The combined 
facilities (500 employees) are used for the construction and repair of 
commercial and military vessels. Foreign components used by the company 
include diesel engines, clutches, deck fittings, anchors, chain and chain
stoppers, generators, compressors, life boats and gate valves. This 
equipment accounts for up to 20 percent of vessel value on construction of
commercial vessels and 40-50 percent on military vessels, and ranges from 5
to 15 percent of repair activity.  
   By helping TBC reduce costs, zone procedures improve the company's ability
to compete internationally for new contracts. Most of the imported components
are subject to significant duties while the finished products, as oceangoing
vessels, are duty-free. The Board in past cases involving shipyards has 
adopted restrictions requiring the payment of Customs duties on steel mill
products available domestically. The applicant has indicated a willingness
to accept such restrictions. 
   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 Avenue, 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 subzone 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, Room 1529, 
14th and Pennsylvania Ave. NW., 
Washington, DC 20230.  
   Dated: February 3, 1988. 
Dennis Puccinelli, 
   Acting Executive Secretary.   
[FR Doc. 88-2829 Filed 2-9-88; 8:45 am]