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                           DEPARTMENT OF COMMERCE

                               [Docket 39-91]

   Application for Extension for Subzone 23B, CPS Corp. (Formerly Greater
                  Press) Ink Plant, Chautauqua County, NY

                           Friday, July 26, 1991

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the County of Erie, New York, grantee of Foreign-Trade Zone 23, 
requesting an extension of authority for Subzone 23B at the ink manufacturing
plant of CPS Corporation (CPS) located in the town of Dunkirk, Chautauqua 
County, New York. (CPS is the former ink manufacturing division of Greater 
Buffalo Press, Inc. (GBP)). The application was formally filed on 
July 2, 1991.

Subzone 23B was approved with restrictions in 1986 (Board Order 332, 51 FR
18468, 5/20/86). The approval covered an existing plant in Sheridan, New
York, and the Dunkirk site to which the plant was to be relocated (this
occurred in 1988). The authorization was for a five-year period from
activation (to 8-25- 91), subject to extension. Approval was also subject to
restrictions requiring the election of privileged foreign status (19 CFR 
146.41) on pigments used in the production of ink sold to domestic printing 
plants not affiliated with GBP and on ink produced in excess of 21 million 
pounds annually.

In August 1989, Sullivan Graphics, Inc. purchased both the ink
manufacturing (CPS) and printing divisions of GBP. In December 1989,
Sullivan sold the ink manufacturing division to INX International, Inc.
which operates CPS as a subsidiary corporation.

The grantee, on behalf of CPS, now requests an indefinite extension of
authority and removal of the restriction regarding production levels. Now
that the Dunkirk plant is active, CPS has closed the Sheridan facility and
has not included it in its extension request. Also, there is no request for
removal of the restriction limiting shipments to affiliated plants. Of the
nine original plants authorized to receive shipments of ink made under full
zone benefits, there remain seven in operation (operated by Sullivan
Graphics). these are the plants to which shipments would continue.

The CPS ink facility consists of an ink production plant on Middle Road and
a warehouse on Rt. 5, in the Town of Dunkirk. The plant produces color inks
primarily for Sullivan Graphics's high-speed comic and commercial newspaper
supplement printing operations in the U.S. and Canada. It sources pigments
from abroad.

Zone procedures exempt CPS from Customs duty payments on pigments and
related chemicals used in ink that is reexported. On sales to Sullivan
Graphics's domestic plants (6 of the 7 noted above), CPS can choose the
duty rate that applies to ink (1.8%). Most foreign pigments used by CPS
have a duty rate of 20 percent. The application indicates that the savings
will continue to help maintain CPS's competitiveness with Canadian 

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; Victor G. Weeren, 
Assistant Regional Commissioner, U.S. Customs Service, Northeast Region, 
suite 801, 10 Causeway Street, Boston, Massachusetts 02222-1056; and Colonel
Hugh F. Boyd III, District Engineer, U.S. Army Engineer District Buffalo, 
1776 Niagara Street, Buffalo, New York 14207-3199.

The FTZ Board plans to temporarily extend subzone status for CPS subject to
the restrictions of Board Order 332 for a period of six months, during
which this review would be concluded.

Comments concerning the application 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 September 9, 1991.

A copy of the application and accompanying exhibits will be available
during this time for public inspection at the following location: 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, room 3716, 
14th and Pennsylvania Avenue NW., 
Washington, DC 20230.

Dated: July 19, 1991.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 91-17806 Filed 7-25-91; 8:45 am]