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                           DEPARTMENT OF COMMERCE

                              [Order No. 506]

       Resolution and Order Approving the Application of the Greater
			Foreign-Trade Zone, Inc., for a
                    Special-Purpose Subzone for Ingalls
Shipbuilding, Inc. in Pascagoula, MS, Proceedings of the Foreign-Trade Zones
                           Board, Washington, DC

                         Thursday, January 24, 1991

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
(the Board) has adopted the following Resolution and Order:
The Board, having considered the matter, hereby orders:

After consideration of the application of The Greater Gulfport/Biloxi
Foreign-Trade Zone, Inc., grantee of FTZ 92, filed with the Foreign-Trade
Zones Board (the Board) on September 27, 1989, requesting
special-purpose subzone status for the shipyard of Ingalls Shipbuilding,
Inc. in Pascagoula, Mississippi, within the Pascagoula Customs port of
entry, the Board, finding that the requirements of the Foreign
-Trade Zones Act, as amended, and the FTZ Board's regulations would be 
satisfied, and that the proposal would be in the public interest if 
approval is subject to the following conditions:

(1) Any steel mill products, including plate, angles, shapes, channels,
rolled steel stock, bars, pipes and tubes, and not incorporated into
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, Ingalls shall advise the Board's Executive Secretary
as to significant new contracts with appropriate information concerning
foreign purchases otherwise dutiable, so 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 Officer of the Board,
is hereby authorized to issue a grant of authority and appropriate Board 

Grant of Authority to Establish a Foreign-Trade Subzone at the Shipyard of
Ingalls Shipbuilding, Inc. in Pascagoula, Mississippi

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-81u) 
(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 Greater Gulfport/Biloxi Foreign-Trade Zone, Inc., grantee of
Foreign-Trade Zone 92, has made application (filed September 27, 1989, FTZ 
Docket 20-89, 54 FR 42318, 10-16-89), in due and proper form to the Board 
for authority to establish a special-purpose subzone at the shipyard of 
Ingalls Shipbuilding, Inc., in Pascagoula, Mississippi;

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 and that the proposal would be in
the public interest if approval were given subject to the restriction in
the resolution accompanying this action;

Now, therefore, in accordance with the application filed September 27,
1989, the Board hereby authorizes special-purpose subzone status at the
shipyard of Ingalls Shipbuilding, Inc. in Pascagoula, Mississippi,
designated on the records of the Board as Foreign-Trade Subzone 92B, and as
described on the maps and drawings accompanying the application, said grant
of authority being subject to the provisions and restrictions of the Act
and regulations issued thereunder, and to the condition in the resolution
accompanying this action, and also to the following express conditions and

Activation of the subzone sites shall be commenced within a reasonable time
from the date of issuance of the grant, and prior thereto the Grantee shall
obtain all necessary permits 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 facilities
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 the Army District 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 17th day of January, 1991, 
pursuant to Order of the Board.

Eric I. Garfinkel,

Assistant Secretary of Commerce for Import Administration, Chairman,
Committee of Alternates, Foreign-Trade Zones Board.

[FR Doc. 91-1667 Filed 1-23-91; 8:45 am]