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                                  NOTICES

                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                              [Order No. 512]

       Resolution and Order Approving the Application of the Board of
                              Commissioners of
  the Port of New Orleans, for Four Special-Purpose Subzones for Avondale
 Industries, Inc. in Jefferson and Orleans Parishes, LA; Proceedings of the
    			Foreign-Trade Zones Board,
                              Washington, DC.

                        Wednesday, February 27, 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 Board of Commissioners of the
Port of New Orleans, grantee of FTZ 2, filed with the Foreign-Trade Zones 
Board (the Board) on June 25, 1990, requesting special-purpose subzone 
status for the four shipbuilding facilities (four sites) of Avondale 
Industries, Inc. in Jefferson and Orleans Parishes, Louisiana, within the 
New Orleans 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 satsified, 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 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, Avondale 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 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 
Order.

Grant of Authority To Establish Special-Purpose Subzones at the Four
Shipbuilding Facilities of Avondale Industries, Inc. in Jefferson and
Orleans Parishes, LA

Whereas, by an act of Congress approved June 18, 1934, an Act "To provide for 
the establishment, operation, and maintennce 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 Board of Commissioners of the Port of New Orleans, grantee of
Foreign-Trade Zone 2, has made application (filed June 25, 1990, FTZ Docket
28-90, 55 FR 27290, 07-02-90), in due and proper form to the Board for 
authority to establish special-purpose subzones at the shipbuilding 
facilities of Avondale Industries, Inc., in Jefferson and Orleans Parishes, 
Louisiana;

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 June 25, 1990, the
Board hereby authorizes special-purpose subzone status at the four
shipbuilding facilities of Avondale Industries, Inc. in Jefferson and
Orleans Parishes, Louisiana, designated on the records of the Board as
Foreign-Trade Subzones: 2C (Main Shipyard); 2D (Westwego); 2E (Harvey); 2F
(Algiers), 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 limitations:

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 subzones,
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 15th day of February, 1991, 
pursuant to Order of the Board.

Marjorie A. Chorlins,

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

[FR Doc. 91-4516 Filed 2-26-91; 8:45 am]