Foreign-Trade Zone 75Phoenix, Arizona; Application for Subzone Status; Sitix of Phoenix, Inc. (Semiconductor Wafers;) Phoenix, Arizona

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 2-96]

Foreign-Trade Zone 75--Phoenix, Arizona; Application for Subzone

Status; Sitix of Phoenix, Inc. (Semiconductor Wafers;) Phoenix, Arizona

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 new semiconductor

wafer manufacturing plant of Sitix of Phoenix, Inc. (Sitix) (subsidiary

of Sumitomo Sitix Corp.), located in Phoenix, Arizona. 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 January 16, 1996.

The Sitix plant (currently under construction) will involve a

466,000-square foot manufacturing facility on 106 acres, located at

19801 Tatum Blvd., Phoenix. The facility (200 employees at the outset)

will be used to produce semiconductor wafers which are used by

manufacturers of integrated circuits. Foreign sourced materials (up to

40% of total) will involve primarily silicon ingots, corundum,

carbides, paints/varnishes, cleaning agents, lubrications, waxes,

polishing materials and packaging materials. Some of the finished

products will be exported.

Zone procedures would exempt Sitix from payments of Customs duties

on foreign materials used in production for export. On domestic sales,

the company would be able to choose the duty rate that applies to

silicon wafers (duty-free) rather than the duty rates that would

otherwise apply to the foreign-sourced items (0-6%). Sitix is also

seeking an exemption from Customs duties on foreign materials that

become scrap and waste during the production process (an estimated 40-

50%). The application indicates that the savings from zone procedures

would help improve the plant's international competitiveness.

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 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

March 25, 1996. Rebuttal comments in response to material submitted

during the foregoing period may be submitted during the subsequent 15-

day period (to April 8, 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, Phoenix Plaza, Suite 970,

2901 North Central Avenue, 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: January 17, 1996.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 96-891 Filed 1-22-96; 8:45 am]

BILLING CODE 3510-DS-P