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                           DEPARTMENT OF COMMERCE

                              [Order No. 539]

 Resolution and Order Approving the Application of the South Louisiana Port
  Commission for a Special-Purpose Subzone at the Shipbuilding Facility of
  American Shipbuilding, Inc., in LaFourche Parish, LA; Proceedings of the
                  Foreign-Trade Zones Board, Washington, DC

                        Wednesday, November 6, 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) adopts the following Resolution and Order:

The Board, having considered the matter, hereby orders:

After consideration of the application of the South Louisiana Port
Commission, grantee of Foreign-Trade Zone 124, filed with the Foreign-Trade
Zones Board (the Board) on August 21, 1990, requesting special-purpose 
subzone status at North American Shipbuilding, Inc.'s, facility in 
Lafourche Parish, Louisiana, adjacent to the Gramercy Customs port of entry,
the Board, finds 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 mill products, including steel 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 the 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, North American Shipbuilding, 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 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 in 
LaFourche Parish, LA

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 South Louisiana Port Commission, Grantee of Foreign-Trade Zone 
No. 124, has made application (filed August 21, 1990, FTZ Docket 36-90, 55 
FR 35915, 09-04-90) in due and proper form to the Board for authority to 
establish a special-purpose subzone at the shipbuilding facility of North 
American Shipbuilding, Inc., in Lafourche Parish, 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 restrictions in
the resolution accompanying this section;

Now, therefore, in accordance with the application filed August 21, 1990,
the Board hereby authorizes the establishment of a subzone at the
shipbuilding facility of North American Shipbuilding, Inc., in Lafourche
Parish, Louisiana, designated on the records of the Board as Foreign-Trade
Subzone 124B, 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 issued thereunder, to the same extent as though the
same were fully set forth herein, and also to the following express
conditions and limitation:

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 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 29th day of October, 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. 91-26780 Filed 11-5-91; 8:45 am]