REPORT TITLE:
Foreign trade zones


DESCRIPTION:
Deisignates Hawaii as a foreign trade zone.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1600
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

Relating to foreign trade zones. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      Section 1.  The purpose of this bill is to enable the entire
 
 2 State of Hawaii to apply for status as a foreign trade zone as
 
 3 that zoning designation is recognized by the Foreign Trade Zone
 
 4 Board of the United States government.  Acquisition of such
 
 5 status would greatly enhance the economy and economic
 
 6 opportunities within the State of Hawaii.  It would also serve
 
 7 the betterment of the economy of the United States as a whole by
 
 8 recognizing Hawaii's unique geographical position as a non-
 
 9 continguous island state and the unique impact this has on
 
10 Hawaii's economy combined with the unique opportunity it provides
 
11 the United states as a whole.  
 
12      SECTION 2.  Section 212-3, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "�212-3 Designation and approval of governor for
 
15 application.  [Any public corporation which is duly designated
 
16 and approved by the governor may] The State of Hawaii authorizes
 
17 itself to make application to the Foreign-Trade Zones Board of
 
18 the United States for the purpose of having the State of Hawaii
 
19 declared a foreign trade zone and for the purpose of
 
20 establishing, operating, and maintaining a foreign-trade zone in
 

 
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 1 accordance with the Act of Congress in any port of entry in the
 
 2 State."
 
 3      SECTION 3.  Section 212-4, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "�212-4 Grant of authority to governor; rules and
 
 6 regulations.  The governor may do all things necessary and proper
 
 7 to carry into effect the establishing, maintaining, and operating
 
 8 [of] the Hawaii foreign-trade [zones] zone, and make such rules
 
 9 and regulations concerning the operation, maintenance, and
 
10 policing of the zone as may be necessary to comply with the Act
 
11 of Congress.  All rules and regulations established under this
 
12 chapter shall be adopted and promulgated pursuant to chapter 91."
 
13      SECTION 4.  Section 212-6, Hawaii Revised Statutes, is
 
14 repealed.
 
15      ["�212-6 Establishment, operation, and maintenance of zone.
 
16 Any public corporation authorized pursuant to this chapter to
 
17 make an application and whose application is granted pursuant to
 
18 the terms of the Act of Congress may establish, operate, and
 
19 maintain the foreign-trade zone: 
 
20      (1)  Subject to the conditions and restrictions of the Act
 
21           of Congress; 
 
22      (2)  Under the rules and regulations, and for the period of
 
23           time that may be prescribed by the foreign-trade zones
 

 
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 1           board established by the Act of Congress to carry out
 
 2           the provisions of the Act."] 
 
 3      SECTION 5.  Section 212-7, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "�212-7 Powers; indemnity or assurance to the United States
 
 6 and deposits with United States.  [If authorized to establish,
 
 7 operate, and maintain a foreign-trade zone, a] All public
 
 8 [corporation] corporations [may] shall, in addition to their
 
 9 other powers: 
 
10      (1)  Provide for such indemnity or assurance to the United
 
11           States or its agencies as they may request; 
 
12      (2)  Deposit such sums of money with the United States as
 
13           the United States or its agencies may request,
 
14           providing the money is available therefor by direct
 
15           appropriation or otherwise.
 
16      SECTION 6.  Section 212-8, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "�212-8 Exemption from taxes.  Notwithstanding any law to
 
19 the contrary, sales of all products which are categorized as
 
20 privileged foreign merchandise, nonprivileged foreign
 
21 merchandise, domestic merchandise, or zone-restricted
 
22 merchandise, and which are admitted into [a] the Hawaii foreign-
 
23 trade zone, as more specifically set forth in the Act of
 

 
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 1 Congress, and any rules and regulations promulgated thereunder,
 
 2 made directly to any common carrier in interstate or foreign
 
 3 commerce, or both, whether ocean-going or air, for consumption
 
 4 out-of-state by the crew or passengers on the shipper's vessels
 
 5 or airplanes, or for use out-of-state by the vessels or
 
 6 airplanes, shall be exempt from those taxes imposed under
 
 7 chapters 237, 238, 243, 244D, and 245."
 
 8      SECTION 7.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 8.  This Act shall take effect upon its approval.
 
11 
 
12                           INTRODUCED BY:  _______________________