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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 68-97]

 
Foreign-Trade Zone 119--Minneapolis, MN; Application for Subzone 
Status, Zytec Corporation Facilities (Electric Power Supplies), Redwood 
Falls, MN

   An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Greater Metropolitan Area Foreign Trade Zone 
Commission, Inc., grantee of FTZ 119 (Minneapolis, Minnesota, area), 
requesting special-purpose subzone status for the electric power supply 
manufacturing facilities of Zytec Corporation (Inc.), located in 
Redwood Falls, Minnesota. 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 August 22, 1997.
    The proposed subzone would consist of Zytec's manufacturing/
warehousing facilities on two parcels located in Redwood Falls (Redwood 
County), Minnesota, some 80 miles southwest of Minneapolis: Parcel 1 
(134,000 sq. ft. on 12 acres)--manufacturing/warehouse facilities, 1425 
East Bridge Street, about one-half mile east of downtown Redwood Falls; 
Parcel 2 (46,000 sq. ft. on 4 acres)--manufacturing/warehouse 
facilities, adjacent west of Parcel 1. The facilities (800 employees) 
are used to produce electric switch mode power supplies (HTSUS 
#8504.40.60) for the U.S. market and export. The power supplies are 
sold to manufacturers of data processing, communications, and 
electronic business equipment. The production process involves 
assembly, testing and warehousing. Components purchased from abroad 
(about 50% of total, by value) include: Diodes, semiconductors, 
transformers, thermostats, torroids, inductors, fans, batteries, 
circuit breakers, resistors, and capacitors (duty rate range: free--
9.4%).
    FTZ procedures would exempt Zytec from Customs duty payments on the 
foreign components used in the export production. On its domestic 
sales, the company would be able to choose the duty rate that applies 
to the power supplies (duty free) for the foreign inputs noted above. 
The application indicates that subzone status would help improve the 
international competitiveness of the Zytec facilities.
    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 on the application is invited from interested 
parties. Submissions (original and three copies) shall be addressed to 
the Board's Executive Secretary at the address below. The closing 
period for their receipt is October 28, 1997. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to November 12, 1997).
    A copy of the application and the accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce, Export Assistance Center, Room 108, 110 
South Fourth Street, Minneapolis, MN 55401
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 3716, 14th Street and Pennsylvania Avenue, 
NW., Washington, DC 20230-0002.

    Dated: August 22, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-23103 Filed 8-28-97; 8:45 am]
BILLING CODE 3510-DS-U