Foreign-Trade Zone 73Baltimore/Washington International Airport, Maryland Application for Foreign-Trade Subzone Status: Northrop Grumman CorporationElectronic Sensors and Systems Division (Electronic Sensoring, Processing, and Communications Technologies), Baltimore, MD, Area

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 54-98]

Foreign-Trade Zone 73--Baltimore/Washington International

Airport, Maryland Application for Foreign-Trade Subzone Status:

Northrop Grumman Corporation--Electronic Sensors and Systems Division

(Electronic Sensoring, Processing, and Communications Technologies),

Baltimore, MD, Area

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

(the Board) by the Maryland Department of Transportation, grantee of

FTZ 73, requesting special-purpose subzone status for the manufacturing

facilities (telecommunication/information systems) of the Electronic

Sensors and Systems Division (ESSD) of Northrop Grumman Corporation,

located at sites in the Baltimore, Maryland, area. 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 1, 1998.

The Northrup Grumman ESSD facilities are located at eleven sites in

the Baltimore, Maryland, area (404 acres, 3.6 million sq. ft.): Site 1

(1 building/450,000 square feet on 43 acres)--Advanced Technology Labs,

located at 1212 Winterson Road, Linthicum; Site 2 (10 buildings/1.7

million sq. ft. on 129 acres)--main manufacturing site, located at 7323

Aviation Boulevard, BWI Airport, Linthicum; Site 3 (4 buildings/14,000

sq. ft. on 86 acres)--test ranges located at 7141 Ridge Road, Hanover;

Site 4 (1 building/114,000 sq. ft. on 5 acres)--Material Acquisition

Center, located at 7001 Aviation Boulevard, Glen Burnie; Site 5 (5

buildings/274,000 sq. ft. on 49 acres)--located at 895 & 897 Oceanic

Drive, Annapolis; Site 6 (1 building/182,000 sq. ft. on 35 acres)--

located at 7301 Sykesville Road, Sykesville; Site 7 (6 buildings/

120,000 sq. ft. on 5 acres)--warehouses located at Trident Court #6,

Halethorpe; Site 8A (1 building/69,000 sq. ft. on 1.5 acres)--warehouse

located at 7041 Troy Hill Drive, Elkridge; Site 8B (1 building/135,000

sq. ft. on 3 acres)--warehouse located at 7040 Troy Hill Drive,

Elkridge; Site 9 (2 buildings/105,000 sq. ft. on 5.6 acres)--repair

center located in Hunt Valley; Site 10 (1 building/143,000 sq. ft. on

11 acres)--located at 1745 W. Nursery Road, Linthicum; and Site 11 (2

buildings/316,000 sq. ft. on 31 acres)--located at 1580B W. Nursery

Road, Linthicum.

The facilities (7,021 employees) are used for the development and

manufacture of telecommunication and information systems products and

related software for defense, aerospace, and transportation. Product

categories include: combat electronic systems (including airborne

radar, air defense, electronic warfare, electro-optical sensors,

shipboard radar, sonar and anti-submarine warfare), airborne

surveillance and reconnaissance, air traffic control, marine propulsion

and power generation, ground-based and satellite telecommunications,

information services and data automation. Some of the components used

in the manufacturing process are purchased from abroad (an estimated

10-15% of finished product value),

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including processed silicon carbides; bolts; nails; metal aircraft

mountings; coated rods and cored wire for soldering; machinery for

molding rubber or plastic; other machinery; electrical transformers;

speed drive controllers for electric motors; static converters;

electrical ignition starting system parts; single line telephone sets;

carrier-current line system apparatuses; sound recording apparatuses;

pickup cartridges for sound or video recording or reproducing

apparatuses; citizens-band transceivers; radar apparatuses; radio

navigational aid apparatuses; video monitors; antennas/antenna

reflectors/parts; radar apparatus printed-circuit assemblies or

subassemblies; other audio/video components; parts of printed circuit

assemblies of radar; radio navigational aid or radio remote control

apparatuses; assemblies and subassemblies of radar apparatuses; parts

of radar apparatuses; electrical apparatuses for switching or

protecting circuits; signal generators; other electrical machines and

apparatuses; parts of other electrical machines and apparatuses;

coaxial cable and other electrical conductors; ignition wiring sets and

other wiring sets; other electric conductors fitted with connectors;

other electric conductors; other electrical parts; aircraft launching

gear/deck-arrestors/parts; gauges; measuring or checking equipment;

parts of measuring or checking equipment; and process control

instruments and apparatus (duty rates on these items range from 0.1% to

5.7%). The company also uses a number of foreign-sourced items that are

duty free.

Zone procedures would exempt ESSD from Customs duty payments on

foreign components used in export production. FTZ procedures will help

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

requirements (including reduced brokerage fees and Customs merchandise

processing fees). On its domestic sales, ESSD also would be able to

choose the lower duty rate that applies to the finished products (duty-

free to 7.0%) for the foreign components noted above. 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 February 8, 1999. Rebuttal comments in

response to material submitted during the foregoing period may be

submitted during the subsequent 15-day period to February 22, 1999.

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, N.W.,

Washington, D.C. 20230

U.S. Department of Commerce Export Assistance Center, World Trade

Center, Suite 2432, 401 East Pratt Street, Baltimore, Maryland 21202

Dated: December 1, 1998.

Dennis Puccinelli,

Acting Executive Secretary.

[FR Doc. 98-32727 Filed 12-8-98; 8:45 am]

BILLING CODE 3510-DS-P