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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                               (Docket 9-92)

 Proposed Foreign-Trade Subzone Flowline Alaska (Pipeline Insulation Plant)
                             Fairbanks, Alaska

                           Friday, April 24, 1992

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the Fairbanks Industrial  Development Corporation (FIDC), 
requesting special-purpose subzone status for the energy pipeline insulation 
plant of Flowline Alaska (Flowline), located in Fairbanks, Alaska. FIDC has 
an application pending with the Board for a general-purpose foreign-trade 
zone in Fairbanks (FTZ Doc. 8-92, filed 4-2-92). The subzone 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 7, 1992.

The proposed subzone would consist of two sites in the Fairbanks area: Site
1, Railroad Industrial site (28,000 sq. ft./17 acres)--main
plant/warehouse, located at 1881 Livengood, Fairbanks; Site 2, South
Fairbanks site (150 acres)--open storage and future plant expansion site
located at Cartwright Road and Fifth Wheel Street in Fairbanks North Star

Flowline's primary service includes applying insulation and anti-corrosion
materials to steel oil/gas piping for its customers. The process uses
polyurethane and powdered fusion bonded epoxy to insulate steel pipe
ranging from 2 to 60 inches in diameter. Galvanized steel and concrete are
applied over the insulating materials as protective coverings. Some of the
steel piping is of foreign origin (HTSUS Subheadings 7304.10, 7304.41,
7304.49), which would be admitted to the proposed subzone in privileged
foreign status (19 CFR 146.41). All of the insulating and protective
materials are sourced domestically. Some 10 percent of the insulated pipe
is exported.

Zone procedures would exempt Flowline's customers from Customs duty
payments on products that are exported. On domestic shipments, zone
procedures would allow deferral of Customs duty payments (7.5% average duty
rate) on the foreign pipe until it is withdrawn from the subzone for
Customs entry. The application indicates that subzone status would help
improve Flowline's international competitiveness.

In accordance with the Board's regulations (as revised, 56 FR 50790-50808,
10- 8-91), a member of the FTZ Staff has been designated examiner to
investigate the application and report to the Board.

Public comment on the application 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 June 19, 1992. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period (to July 6, 1992).

A copy of the application and accompanying exhibits will be available for
public inspection at each of the following locations:
Office of the Port Director, 
U.S. Customs Service, 
6450 Old Airport Way,
Fairbanks, Alaska 99706.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, room 3716,
14th Street and Constitution Avenue, NW., 
Washington, DC 20230.

Dated: April 15, 1992.

John J. Da Ponte, Jr.,

Executive Secretary.

(FR Doc. 92-9615 Filed 4-23-92; 8:45 am)