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last update: September 2002 
Foreign-Trade Zones Board
[Docket 25-96]

Foreign-Trade Zone 14--Little Rock, Arkansas; Application for
Subzone; Mid States Pipe Fabricating, Inc. (Steel Pipe); El Dorado, AR

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Little Rock Port Authority on behalf of the Industrial Development Commission of the State of Arkansas, grantee of FTZ 14, requesting special-purpose subzone status for the steel pipe fabrication facilities of Mid States Pipe Fabricating, Inc. (Mid States), located in El Dorado, Arkansas, some 110 miles south of Little Rock. 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 March 25, 1996.

This application replaces and closes the file on an earlier application filed in 1993 and still pending involving a Mid States plant in Harlingen, Texas (FTZ Doc. 58-93, filed 11/24/93, 58 FR 63911, 12/3/93). Mid States closed its Harlingen plant in 1995 and relocated the operations to the El Dorado, Arkansas, plant that is the subject of this application.

The Mid States El Dorado facilities consist of two sites within the City of El Dorado, Arkansas. The main facility (70,000 sq. ft. on 14 acres) is located at 1130 East Main Street. The second facility is located at 205 Hurley Road (33,000 sq. ft. on 29 acres). The facilities (100 employees) are used to fabricate steel and steel alloy pipe (\1/ 2\'' to 60'' outer diameter). The pipe is used by the oil refining, chemical processing, paper production, power generation, and motor vehicle manufacturing industries.

Foreign-origin materials used in the manufacturing process include: iron and steel (alloy or non-alloy including carbon, stainless and chrome) pipes, flanges, elbows, fittings, swage nipples and related items. (Foreign materials would be admitted in privileged foreign status (19 CFR 146.41)).

Zone procedures would exempt Mid States from Customs duty payments on the foreign materials used in export production (20% of output). On domestic sales, the company would be able to defer Customs duties until finished products are shipped from the plant. The company is also seeking an exemption from the Customs duty on scrap and waste that results from the production process (3%). The foreign materials and finished products held for export would be eligible for an exemption from certain state and local ad valorem taxes. The application indicates that the savings from zone procedures would help improve the plants' international competitiveness.

In accordance with the Board's regulations, a member of the FTZ Staff has been appointed 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 June 4, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period June 19, 1996.

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, 425 W. Capitol Avenue, 7th Floor, Little Rock, Arkansas 72201 Office of the Executive Secretary, Foreign-Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW., Washington, DC 20230.

Dated: March 28, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-8369 Filed 4-4-96; 8:45 am]