Import Administration
FTZ Staff Contact Information
last update: September 2002 

                           DEPARTMENT OF COMMERCE

                              (Order No. 649)

 Newport News Shipbuilding & Dry Dock Co. (Shipbuilding), Newport News, VA;
                   Grant of Authority for Subzone Status

                          Wednesday, July 7, 1993

Pursuant to its authority under the Foreign-Trade Zones Act of June 18, 
1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board (the 
Board) adopts the following Order:

Grant of Authority for Subzone Status, Newport News Shipbuilding & Dry Dock
Company (Shipbuilding), Newport News, VA

Whereas, by an Act of Congress approved June 18, 1934, an Act "To provide
for the establishment . . . of foreign-trade zones in ports of entry of the 
United States, to expedite and encourage foreign commerce, and for other 
purposes," as amended (19 U.S.C. 81a-81u) (the Act), the Foreign-Trade
Zones Board (the Board) is authorized to grant to qualified corporations the 
privilege of establishing foreign-trade zones in or adjacent to U.S. 
Customs ports of entry;

Whereas, the Board's regulations (15 CFR part 400) provide for the
establishment of special-purpose subzones when existing zone facilities
cannot serve the specific use involved;

Whereas, an application from the Virginia Port Authority, grantee of
Foreign- Trade Zone 20, for authority to establish a special-purpose
subzone for the Newport News Shipbuilding & Dry Dock Company shipyard, in
Newport News, Virginia, was filed by the Board on July 8, 1992, and notice
inviting public comment was given in the Federal Register (FTZ Docket
23-92, 57 FR 32000, 8-20- 92); and,

Whereas, the Board has found that the requirements of the FTZ Act and
Board's regulations would be satisfied, and that approval of the
application would be in the public interest if approval were given subject
to the standard shipyard restriction on foreign steel mill products;

Now, Therefore, the Board hereby authorizes the establishment of a subzone
(Subzone 20B) at the Newport News Shipbuilding & Dry Dock Company shipyard,
in Newport News, Virginia, at the location described in the application,
subject to the FTZ Act and the Board's regulations, including 400.28, and
subject to the following special conditions:
1. Any foreign steel mill products admitted to the subzone, including
plate, angles, shapes, channels, rolled steel stock, bars, pipes and tubes,
not incorporated into merchandise otherwise classified, and which is used
in manufacturing, shall be subject to Customs duties in accordance with
applicable law, if the same item is then being produced by a domestic steel
mill; and,
2. In addition to the annual report, Newport News Shipbuilding shall advise
the Board's Executive Secretary (400.28(a)(3)) as to significant new
contracts with appropriate information concerning foreign purchases
otherwise dutiable, so that the Board may consider whether any foreign
dutiable items are being imported for manufacturing in the subzone
primarily because of subzone status and whether the 
Board should consider requiring Customs duties to be paid on such items.

Signed at Washington, DC, this 25th day of June, 1993.

Joseph A. Spetrini,

Acting Assistant Secretary of Commerce for Import Administration Chairman,
Committee of Alternates 
Foreign-Trade Zones Board.

(FR Doc. 93-16015 Filed 7-6-93; 8:45 am)