Foreign-Trade Zone 136Brevard County, FL; Application for Foreign-Trade Subzone Status Harris CorporationElectronic Systems Sector (Telecommunication/Information Systems), Brevard County, FL

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 84-97]

Foreign-Trade Zone 136--Brevard County, FL; Application for

Foreign-Trade Subzone Status Harris Corporation--Electronic Systems

Sector (Telecommunication/Information Systems), Brevard County, FL

An application has been submitted to the Foreign-Trade Zones Board

(the Board) by the Canaveral Port Authority, grantee of FTZ 136,

requesting special-purpose subzone status for the manufacturing

facilities (telecommunication/information systems) of the Electronic

Systems Sector (ESS) business unit of Harris Corporation, located at

sites in Brevard County, Florida. The application was submitted

pursuant to 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 December 22, 1997.

The Harris ESS facilities are located at four sites in Brevard

County, Florida (388 acres, 1.9 million sq. ft.): Site 1 (44 buildings/

1.9 million square feet on 181 acres)--located at 2400 NE Palm Bay

Road, Palm Bay; Site 2 (4 buildings/315,000 sq. ft. on 50 acres)--

located at 150 S. Wickham Road, Melbourne; Site 3 (2 buildings/114,000

sq. ft. on 30 acres)--located at 505 N. John Rodes Blvd., West

Melbourne; and Site 4 (3 buildings/215 sq. ft. on 127 acres)--located

at 2800 Jordan Boulevard, Malabar.

The facilities (6,200 employees) are used for the development and

manufacture of telecommunication and information systems products and

related software for defense, aerospace, transportation and energy

management, meteorology and publishing. Applications include digital

maps, cockpit controls and displays, antennas, land and satellite

communications terminals and networks, satellite antenna testing,

electronic warfare and evaluation systems, global positioning control

systems, signal and imaging processing, weather support systems, civil

and military air traffic control systems, integrated airport

communication and management systems, and information processing

systems for publishing. Some of the components used in the

manufacturing process are purchased from abroad (an estimated 10-15% of

finished product value), including power supplies, mobile data

terminals, optical switch modules, transmission apparatus, printed

circuits, connectors, optical instruments and appliances, testing

equipment, audio-frequency electrical amplifiers, static connectors,

electronic parts and equipment, and antennae reflectors (duty rates

range from duty-free to 8.5%; weighted average--3.4%).

Zone procedures would exempt Harris from Customs duty payments on

foreign components used in export production. On its domestic sales,

Harris would be able to choose the lower duty rate that applies to the

finished products (duty-free to 6.0%; weighted average--2.5%) for the

foreign components noted above. FTZ procedures will also help Harris

ESS to implement a more cost-effective system for handling Customs

requirements (including reduced brokerage fees and Customs merchandise

processing fees). FTZ status may also make a site eligible for benefits

provided under state/local programs. 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 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 March 17, 1998. Rebuttal comments in

response to material submitted during the foregoing period may be

submitted during the subsequent 15-day period to April 1, 1998. A copy

of the application and the accompanying exhibits will be available for

public inspection at each of the following locations:

Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.

Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, NW.,

Washington, DC 20230

U.S. Department of Commerce Export Assistance Center, 200 E. Robinson

St., Suite 1270, Orlando, Florida 32801

Dated: December 23,1997.

Dennis Puccinelli,

Acting Executive Secretary.

[FR Doc. 98-1161 Filed 1-15-98; 8:45 am]

BILLING CODE 3510-DS-P