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Foreign-Trade Zones  Board
(Docket 31-93) 

Foreign-Trade Zone 120, Cowlitz County, WA; Application for Subzone, Sharp 
Microelectronics Technology, Inc., Plant (Liquid Crystal Displays), Camas, WA

Thursday, July 2,1993 An application has been submitted to the Foreign-Trade
Zones Board (the Board) by the  Cowlitz Economic Development Council, 
grantee of FTZ 120 (in cooperation with the Port of Portland and the Port of 
Kalama), requesting special-purpose subzone status for the liquid crystal 
display (passive matrix) manufacturing plant Sharp Microelectronics 
Technology, Inc. (SMT), subsidiary of Sharp Corporation of Japan) in Camas 
(Clark County), Washington, adjacent to the Portland, Oregon, Customs port 
of entry. 

The application has been 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 July 9, 1993. SMT's 
facility (120 acres) is located at 5700 NW Pacific Rim Boulevard, Camas, 
Washington, 10 miles northeast of Portland, Oregon. The facility is used to 
manufacture and repair passive matrix liquid crystal displays (LCDs). The 
application requests authority for existing and planned LCD manufacturing 
capacity (total:  160,000 sq. ft.; 300 employees). Foreign components 
currently account for 60 percent of the value of the displays. Specific 
items sourced from broad include liquid crystal display glass, large-scale 
flexible integrated circuits, printed wiring boards, plastic or metal 
display bezels, backlight assemblies (containing a chassis, a cold cathode 
fluorescent tube, reflector material and associated parts), jumpers, 
solder, flux, protective sheets, tape, plastic trays, and inner packaging. 

procedures would exempt SMT from Customs duty payments  on foreign 
components used in production for export. On domestic sales, the company 
would be able to choose the duty rate that applies to the finished product. 
LCDs such as those produced at the Camas plant have been classified as 
duty-free, but recent Customs rulings indicate that certain LCDs may be 
subject to duty rates ranging from 3.7 to 9 percent. The duty rates on 
foreign components range from duty-free to 9 percent. SMT currently is 
able to import certain unassembled LCD kits duty-free, under the Customs 
entireties provision. The kits are comprised of the main LCD components, 
all sourced abroad: LCD glass, jumpers, integrated circuits and printed 
wiring boards. The application indicates that zone procedures will improve 
the plant's international competitiveness and will encourage domestic 
sourcing by allowing SMT to continue to qualify for the same finished 
product duty rate as is currently available under the Customs entireties 
provision, but with the flexibility to source key components domestically. 

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 
September 20, 1993. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-day 
period (to October 5, 1993). A copy of the application and accompanying 
exhibits will be available for public inspection at each of the following 
U.S. Department of Commerce District Office, 
One World Trade Center, Suite 242, 
121  S.W. Salmon St., 
Portland, Oregon 97204. 

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
Department of Commerce, Room 3716, 
14th & Pennsylvania Avenue, NW., 
Washington, DC 20230. 

Dated: July 14, 1993.  

John J. Da Ponte, Jr., 
Executive Secretary. 

(FR Doc. 93-17458 Filed 7-21-93; 8:45 am)