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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                               [Docket 35-91]

 			Foreign-Trade Zone 123--Denver,
                    CO; Application for Subzone, Storage
 Technology Corporation Information Storage Equipment Plant Boulder County,

                           Tuesday, June 25, 1991

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the City and County of Denver, Colorado, grantee of FTZ 123, 
requesting special-purpose subzone status for the information storage 
equipment manufacturing facilities of Storage Technology Corporation 
(StorageTek) located in Boulder County, Colorado, some 25 miles northwest of
Denver. 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 June 12, 1991.

StoregeTek is an international producer of large capacity electronic data
storage and retrieval systems, impact printers and related data management
software. It has plants in the U.S. and the U.K., and annual sales of $1 

The proposed subzone would include the company's Boulder County, Colorado,
production and distribution operations (5,000 employees): Site 1 (360
acres)-- 2270 South 88th St., Louisville; Site 2 (153 acres)--2345 Clover
Basin Drive, Longmont; Site 3 (58,000 sq. ft.)--1351 S. Sunset Street,
Longmont; Site 4 (92,000 sq. ft.)--520 Burbank Street, Broomfield.
StorageTek's Colorado facilities are used to manufacture large capacity
electronic information storage and retrieval subsystems for data processing
applications involving reel and cartridge tape devices, automatic cartridge
library systems, solid-state disk subsystems, cached and non-cached disk
control units, rotating magnetic disk subsystems, impact printers, and
associated software. Some 10 percent of its components are sourced abroad,
including hard and floppy disk drive units, table and rack mounted storage
devices, printed circuit assemblies, high capacity output units, laser
printers, power supplies, and related ADP parts and accessories, as well as
electric motors, generators, transformers, capacitors, resistors, switches,
photosensitive semiconductor devices, bearings, wire and cable, lenses,
measuring instruments, air and vacuum pumps, and certain articles of rubber
and ceramic. Currently, 40 percent of the finished products are exported.

Zone procedures would exempt StorageTek from Customs duty payments on the
foreign components used in equipment produced for export. On domestic
sales, the company would be able to choose the duty rates that apply to the
finished products (0.0-4.2 percent). The duty rates on most components
range from 0.0 to 16.0 percent. The application indicates that zone savings
will help improve StorageTek's international competitiveness and increase
export sales.

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: Dennis Puccinelli (Chairman), Foreign-Trade Zones 
Staff, U.S. Department of Commerce, Washington, DC 20230; Donald W. Myhra, 
District Director, U.S. Customs Service, North Central Region, 300 Second 
Avenue South, Great Falls, Montana 59401; and Colonel Stewart Bornhoft, 
District Engineer, U.S. Army Engineer District Omaha, 25 North 17th Street, 
Omaha, Nebraska 68102-4978.

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 August 9, 1991.
A copy of the application is available for public inspection at each of the
following locations:
Office of the District Director, 
U.S. Department of Commerce, suite 600,
1625 Broadway, 
Denver, CO 80202.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, 
14th & Pennsylvania Avenue, NW., room 3716, 
Washington, DC 20230.

Dated: June 18, 1991.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 91-15078 Filed 6-24-91; 8:45 am]