DEPARTMENT OF COMMERCE
Foreign-Trade Zone 158--Vicksburg/Jackson, MS; Application for Subzone;
Cortelco Telephone/Computer Equipment Plant, Corinth, MS
Wednesday, June 2, 1993
An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Vicksburg/Jackson Foreign-Trade Zone, Inc., grantee of FTZ
158, requesting special-purpose subzone status for the telephone and
computer equipment manufacturing facility of Cortelco USA, Inc. (aka CMC,
Inc.), in Corinth, Mississippi. 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 May 17, 1993.
The Cortelco/CMC facilities (70 acres, 1,200 employees) include a
manufacturing plant and two warehouses in Corinth (Alcorn County),
Mississippi: Site 1 (64 acres)--manufacturing plant, Fulton Drive in
Corinth/Alcorn Industrial Park; Site 2 (4 acres)--warehouse, Sawyer Road;
and, Site 3 (2 acres)--warehouse, Pinecrest Road. The facilities are used
to produce telephone and computer equipment. The telephone products range
from single-line telephones to PBX multiline equipment. The computer
equipment, manufactured under contract for computer companies, includes
monochrome and color monitors, printed circuit board assemblies, and
uninterruptible power supplies.
The company purchases certain parts and materials from abroad, including
cathode ray tubes, integrated tubing componentry, transformers, yokes,
microphones, keyboards, circuit boards, capacitors, resistors, transistors,
integrated circuits, diodes, batteries and plastic parts. (Foreign-sourced
color cathode ray tubes will be admitted in foreign-privileged status
(19 CFR 146.41).) Zone procedures would exempt Cortelco/CMC from Customs
duty payments on foreign materials used in production for export. On
domestic sales, the company would be able to choose the duty rates that
apply to the finished products (duty-free to 8.5%, with many at 3.7%). The
duty rates on foreign-sourced components range from duty-free to 10
percent. On shipments to computer manufacturers operating under zone
procedures, Customs duties on the Cortelco products would be deferred until
finished computers are entered for consumption and the computer duty rate
(3.9%) would apply. The application indicates that zone savings will help
improve the plant's international competitiveness.
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
Board. 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
August 2, 1993.
Rebuttal comments in response to material submitted during the foregoing
period may be submitted during the subsequent 15-day period (to August 16,
1993). A copy of the application and accompanying exhibits will be
available for public inspection at each of the following locations:
U.S. Department of Commerce, District Office,
310 Millsaps Building,
201 W. Capitol Street,
Jackson, Mississippi 39201.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 3716,
14th & Pennsylvania Avenue, NW.,
Washington, DC 20230.
Dated: May 20, 1993.
John J. Da Ponte, Jr.,
(FR Doc. 93-12865 Filed 6-1-93; 8:45 am)