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B-114898 1 (1971-04-15)

handle is hein.gao/gaobaafhu0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 205487) 74 INTERNATIONAL DIVISION APR 1 5 1971 LMOS5581 Doe r. tau. .Ae oMeal AcCoMuting Office (A10) ree undertook o nv.o of ?oroelgo doe Zo n &acivities &etadL ere b;7.- the Foroigrn-e Zones BoMrd. DuiZv the COUrge Of thiC t u47, which 1-5 1 i prors, we came Wpon a situation vhicxh une Imtng to yam, at,.tent~n quetIMo of the F'oreil frade Zons Joard. The situateon in P A? 4L qvoum lvem inpost.1on of ustns duity oni -1 ,poted nerand so ,used in zone ef34%omfc th :eoi 5ttho or~---WT , a mbe of yolw boar-d. The Stats of Hawaii vant s tetablish a speotal purpoee subone to goe s mtgar *mne oast (bemse) into pli or xpot to Japan. S~oe n L geatabr~atein Kavd; ad el tlte vset to tho local eawy. Disposal oean Aozts' o burning dha eoins~ Zo warl pro Pble bea1 e of pfat4l. o-rat io~e S tat e oficals sIbsit that creation of a e ~o~eoaCd rs J.Z sosmm 2Z5 jobs end = Iwpxtion of about': 9-,QW0 tone. c- p;creiot valued at abouat $W1 sillo l4 m nnuJJ. These onflS~e7 e!r fm ze howr, that the econmoi feasibilty of the pro -ec t is deoenemt on mw of Import duties and taxes on !2oreicn origin =cinx-ry7 materiel, =nd Awel to be waed In the pyrposeC subzone. BUMOf CUStoM off IiCle have State that dutie IMaU tfnce awe applieahl to all frgn machinGX7y, material, and £ute2 to be pmm In the prp s bsono. Thus, Aft now ippea that the project muy be abandoned with resultant ios of eeoorc- nii ance of pay-ments bai'sft to the .4 ted States, The Bureau of Customs position is based on a precedent esablished in 1953 and consistently applied sine that t. The general prineiple involved is that all foreign memchanrh e -s subject to dulty trlenas mp elfealyexmteC. The 3reau points cyut that twhe Foreirn TiAiD Zones Act, an sended (r9 U.03.0. 8laM8lM), is Milent width rsetto thselsttus 50TH ANNIVERSARY 12-97

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