DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
Foreign-Trade Zone 18, San Jose, CA, Request for Manufacturing
Authority, Solectron Corporation Plant (Electronic/Computer/
Telecommunication Equipment), San Jose, California
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by San Jose Distribution Services, operator of FTZ 18,
pursuant to Sec. 400.32(b)(1)(ii) of the Board's regulations (15 CFR
part 400), requesting authority on behalf of Solectron Corporation, to
``kit''/assemble computer/telecommunication subassemblies and products
within FTZ 18. It was formally filed on March 7, 1997.
Solectron Corporation is a contract assembler/manufacturer of
computer/telecommunication subassemblies and products, specializing in
the production of complex printed circuit boards. Solectron plans to
use a site (up to 20,000 sq. ft.) within FTZ 18 to conduct a range of
activities under zone procedures as an adjunct to operations at its
Milpitas, California, plant. The requested scope of authority for
manufacturing under zone procedures parallels the range of activity
conducted at the Milpitas plant.
Solectron is proposing to ``kit''/assemble a variety of computer/
telecommunication equipment and subassemblies within FTZ 18, including
printed circuit board assemblies, computers and components,
telecommunication equipment and components, fax machines and modems.
Foreign components, which will account for an estimated 40 to 50
percent of material value, may include printed circuit boards,
conductors, resistors, transmitters, diodes, transistors, capacitors,
fuses, circuit breakers, switches, surge suppressors, motor starters,
modems, facsimile machines and parts, routers and bridgers, computer
and telecommunications equipment parts. It is estimated that some 40
percent of the FTZ production would be exported.
Zone procedures would exempt Solectron 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 (duty-free to 8.5%,
with most less than 2.7%) that applies to the finished product. The
duty rates on foreign components range from duty-free to 9.8% percent.
The application indicates that zone procedures will improve the plant's
international competitiveness and will help increase exports.
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
May 19, 1997. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period to May 2, 1997.
A copy of the request will be available for public inspection at
the following locations:
U.S. Department of Commerce, Export Assistance Center, 5201 Great
American Pkwy., #456, Santa Clara, California 95054
Office of the Executive Secretary, Foreign-Trade Zones Board, Room
3716, U.S. Department of Commerce, 14th and Pennsylvania Avenue, NW.,
Washington, DC 20230
Dated: March 10, 1997.
John J. Da Ponte, Jr.,
[FR Doc. 97-6681 Filed 3-17-97; 8:45 am]
BILLING CODE 3510-DS-P