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last update: September 2002 

                           (Cite as: 58 FR 62635)


                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                               (Docket 57-93)

  Foreign-Trade Zone 75--Phoenix, Arizona; Application for Subzone, Intel
   Corporation Plant, (Integrated Circuits/Computer Products), Chandler,

                         Monday, November 29, 1993

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the City of Phoenix, Arizona, grantee of FTZ 75, requesting 
special-purpose subzone status for the integrated circuit and data 
processing products manufacturing facility of Intel Corporation located in 
Chandler, Arizona (Phoenix Customs port of entry area). 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 November 22, 1993.

The Intel plant (930 acres, 1.5 mil. sq. ft.) consists of four sites
located in Chandler (Maricopa County), Arizona, some 15 miles south of
downtown Phoenix: Site 1 (184 acres)--main manufacturing and distribution,
5000 W. Chandler Blvd.; Site 2 (723 acres)--proposed expanded
manufacturing, 97th St. and Chandler Heights Rd.; Site 3 (12
acres)--research, development and testing, 145 S. 79th St.; and, Site 4 (10
acres)--manufacturing laboratories, 6500 W. Chandler Blvd.
The facilities (4,300 employees) are used to produce a range of integrated
circuits and related products (HTS 8542.11.00--duty free), including
microprocessors, OEM processor modules, embedded control chips, flash
memory and microcomputer enhancement products. Foreign-sourced materials,
which account for approximately 20 percent of finished product value,
include resins, adhesives, plastics, photographic chemicals, ceramic
products and industrial gold. About 50 percent of the finished products are 

Subzone status is important for Intel's expansion plans in Chandler,
Arizona. The plans call for the addition of over 7 million square feet of
manufacturing space (mainly at Site 2), which, in addition to the expanded
production of integrated circuits, would be used in the production of a
variety of microcomputer and telecommunication products, including personal
computers, modems, computer board assemblies and other computer
enhancement, networking and multimedia products. Foreign-sourced components
and materials would include processors, disk drives, displays, printers,
keyboards, printed circuit boards, transformers, capacitors, resistors,
diodes, integrated circuits, electrical switches, wire, adhesives,
photographic chemicals, poly vinyl chloride, resins, plastics, industrial
gold, glass and ceramic products, batteries, fasteners, recording media,
video apparatus, microphones, speakers, lamps, optical elements, electrodes
and packaging.

Zone procedures would exempt Intel 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 4.9%). The duty rates on foreign-sourced items range from
duty-free to 20 percent. The application indicates that the savings from
zone procedures will help improve the plant's international

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 January 28, 1994.
Rebuttal comments in response to material submitted during the foregoing
period may be submitted during the subsequent 15-day period 
February 14, 1994.

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, 
Tower One, Suite 970, 
2901 N. Central Ave., 
Phoenix, AZ 85012.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 3716,
14th and Pennsylvania Avenue, NW., 
Washington, DC 20230.
Dated: November 22, 1993.

John J. Da Ponte, Jr.,

Executive Secretary.

(FR Doc. 93-29326 Filed 11-26-93; 8:45 am)