DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
Foreign-Trade Zone 77--Memphis, TN; Application for Expansion for Subzone
Sharp Television, Microwave Oven and Computer Plant, Memphis, TN
Thursday, April 30, 1992
An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the City of Memphis, Tennessee, grantee of FTZ Subzone 77A, at
the Sharp Manufacturing Company of America (Sharp) plant, located in
Memphis, Tennessee, requesting authority to expand the subzone and the
scope of manufacturing authority. 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 April 15, 1992.
The FTZ Board approved subzone status for the plant in 1984 (Board Order
265, 49 FR 28589, 7/13/84). Manufacturing authority was granted for the
production of television receivers and microwave ovens. The facility (860
employees) currently produces some 4,000 television sets and 3,500
microwave ovens each day.
In December 1991, Sharp began using the plant to assemble portable
computers (laptop) using duty-paid parts and components (domestic status
merchandise). It now requests authority to manufacture this product under
Foreign materials currently account for all of the value of the finished
portable computers, but the company plans to eventually source a
substantial portion of the parts and components domestically. Specific
items to be sourced from abroad include printed wiring boards, flat panel
display units, computer cabinets, keyboards, adaptors, track balls, power
supplies, batteries, floppy disk drives, hard disk drives, capacitors,
resistors, and metal screws. Some 13 percent of the finished equipment will
Zone procedures would exempt Sharp from Customs duty payments on foreign
parts that are used in production for export. On its domestic sales, it
would be able to choose the duty rate that applies to the finished product
(3.9 percent). The duty rates on foreign components range from duty-free to
10 percent. The application indicates that zone savings will help improve
the plant's international competitiveness and increase exports. There is
currently an antidumping duty order in effect on certain flat panel display
units. FTZ Board regulations (as revised, 56 FR 50790-508008, 10/8/91)
require privileged foreign status to be elected on any merchandise subject
to such orders.
The application also requests authority to expand Subzone Site 1 (currently
40 acres) to include all of the 107 acres owned by Sharp at this location,
which is bordered by Sharp Plaza Blvd. on the north, Clark Road on the
east, Raines Road East on the south, and Mendenhall Road on the west. The
company does not plan at present to activate the additional area, which is
intended for the future production of parts for microwave ovens,
televisions, and personal computers.
In accordance with the Board's regulations, a member of the FTZ Staff has
been designated examiner to investigate the application and report to the
Public comment is invited from interested parties. Submissions (original
and 3 copies) shall be addressed to the Board's Executive Secretary at the
address below. The closing period for their receipt is Rebuttal comments in
response to material submitted during the subsequent 15-day period (to (75
days from date of publication)).
A copy of the application will be available for public inspection at each
of the following locations:
U.S. Department of Commerce District Office, suite 200, Falls Bldg.,
22 North Front Street,
Memphis, Tennessee 38103
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 3716,
14th & Constitution Avenue, NW.,
Washington, DC 20230.
Dated: April 24, 1992.
John J. Da Ponte, Jr.,
(FR Doc. 92-10107 Filed 4-29-92; 8:45 am)