Import Administration
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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
 
                                [Order No. 374] 
 
                                   53 FR 7955 
 
                                 March 11, 1988 
 
 
Resolution and Order Approving the Application of the City of Mobile, AL,
for a Special-Purpose Subzone for ADDSCO Industries, Inc. 
 
TEXT: Proceedings of the Foreign-Trade Zones Board, Washington, DC.  
 
 
Resolution and Order 
 
   Pursuant to the authority granted in the Foreign-Trade Zones Act of June
18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board has 
adopted the following Resolution and Order: 
 
   The Board, having considered the matter, hereby orders:  
 
   After consideration of the application of the City of Mobile, Alabama, 
grantee of Foreign-Trade Zone 82, filed with the Foreign-Trade Zones Board
(the Board) on June 20, 1986, requesting special-purpose subzone status for
the shipyard of ADDSCO Industries, Inc., within the Mobile Customs port of
entry, the Board, finding that the requirements of the Foreign-Trade Zones
Act, as amended, and the Board's regulations would be satisfied, and that 
the proposal would be in the public interest, if approval is subject to 
certain conditions, approves the application subject to the following 
conditions: (1) Any steel plate, angles, shapes, channels, rolled sheet 
stock, bars, pipes and tubes, classified under Schedule 6, Part 2, Subp. 
B, TSUS, and not incorporated under merchandise otherwise classified, and 
which is used in manufacturing shall be subject to Customs duties in 
accordance with applicable law, if the same item is then being produced by 
a domestic steel mill; and (2) in addition to the annual report, ADDSCO 
Industries, Inc., shall advise the Board's Executive Secretary as to 
significant new contracts, with appropriate information concerning foreign 
purchases otherwise dutiable, so that the Board may consider whether any 
foreign dutiable items are being imported for manufacturing in the subzone 
primarily because of subzone status and whether the Board should consider 
requiring Customs duties to be paid on such items. 
 
   The Secretary of Commerce, as Chairman and Executive Office of the Board,
is hereby authorized to issue a grant of authority and appropriate Board 
Order.   

   Whereas, by an Act of Congress approved June 18, 1934, an Act "To provide
for the establishment, operation, and maintenance of foreign-trade zones in
ports of entry of the United States, to expedite and encourage foreign 
commerce, and for other purposes," as amended (19 U.S.C. 81a-81c) (the 
Act), the Foreign-Trade Zones Board (the Board) is authorized and empowered
to grant to corporations the privilege of establishing, operating, and 
maintaining foreign-trade zones in or adjacent to ports of entry under the
jurisdiction of the United States;  
 
   Whereas, the Board's regulations (15 CFR 400.304) provide for the 
establishment of special-purpose subzones when existing zone facilities 
cannot serve the specific use involved, and where a significant public 
benefit will result;  

   Whereas, the City of Mobile, Alabama, grantee of Foreign-Trade Zone No. 
82, has made application (filed June 20, 1986, FTZ Docket 22-86, 51 FR 
25075) in due and proper form to the Board for authority to establish a 
special-purpose subzone at the shipyard of ADDSCO Industries, Inc., in 
Mobile, Alabama;   

   Whereas, notice of said application has been given and published, and 
full opportunity has been afforded all interested parties to be heard; and
 
   Whereas, the Board has found that the requirements of the Act and the 
Board's regulations would be satisfied if approval is subject to the 
conditions stated in the resolution accompanying this action; 
 
   Now, therefore, in accordance with the application filed June 20, 1986,
the Board hereby authorizes the establishment of a subzone at the shipyard
of ADDSCO Industries, designated on the records of the Board as Foreign-
Trade Subzone No. 82A at the location mentioned above and more particularly
described on the maps and drawings accompanying the application, said 
grant of authority being subject to the provisions and restrictions of the 
Act and the regulations, and those stated in the resolution accompanying 
this action, including the requirement that foreign basic steel mill 
products shall be subject to Customs duties prior to admission into the 
subzone if the same item is then being produced by a domestic mill, and 
also to the following express conditions and limitations:  
 
   Activation of the subzone shall be commenced within a reasonable time
from the date of issuance of the grant, and prior thereto, any necessary
permits shall be obtained from Federal, State, and municipal authorities. 
 
   Officers and employees of the United States shall have free and 
unrestricted access to and throughout the foreign-trade subzone in the 
performance of their official duties. 
 
   The grant shall not be construed to relieve responsible parties from 
liability for injury or damage to the person or property of others 
occasioned by the construction, operation, or maintenance of said subzone,
and in no event shall the United States be liable therefor. 
 
   The grant is further subject to settlement locally by the District 
Director of Customs and District Army Engineer with the grantee regarding 
compliance with their respective requirements for the protection of the 
revenue of the United States and the installation of suitable facilities.
 
   In witness whereof, the Foreign-Trade Zones Board has caused its name to 
be signed and its seal to be affixed hereto by its Chairman and Executive 
Officer or his delegate at Washington, DC, this 4th day of March 1988, 
pursuant to Order of the Board. 
 
 
Foreign-Trade Zones Board. 
Gilbert B. Kaplan, 
 
   Acting Assistant Secretary of Commerce for Import Administration; 
Chairman, Committee of Alternates. 
 
   Attest: 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.   
[FR Doc. 88-5414 Filedd 3-10-88; 8:45 am] 
 
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