96-27856. Foreign-Trade Zone 39Dallas/Fort Worth, TX, Request for Manufacturing Authority, Selective Technology, Inc. (Automotive Air- Conditioner Components)

[Federal Register Volume 61, Number 211 (Wednesday, October 30, 1996)]
[Notices]
[Page 55955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27856]


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DEPARTMENT OF COMMERCE
Docket A(32b1)-4-96


Foreign-Trade Zone 39--Dallas/Fort Worth, TX, Request for 
Manufacturing Authority, Selective Technology, Inc. (Automotive Air-
Conditioner Components)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Dallas/Fort Worth International Airport Board, 
grantee of FTZ 39, pursuant to Sec. 400.32(b)(1) of the Board's 
regulations (15 CFR Part 400), requesting authority on behalf of 
Selective Technologies, Inc. (Seltec) (a joint-venture of Tama 
Manufacturing and Zexel, of Japan), to manufacture automotive air-
conditioner compressors under zone procedures within FTZ 39. It was 
formally filed on October 18, 1996.
    Seltec operates an automotive air-conditioner compressor assembly 
facility (50 employees) within FTZ 39, and this application requests 
authority to allow Seltec to conduct the activity under FTZ procedures. 
Seltec's compressors are sold in the automotive parts aftermarket and 
to specialty original equipment motor vehicle manufacturers in the U.S. 
and abroad. The activity involves the assembly of finished air-
conditioner compressors using foreign-sourced compressor units 
(comprising about 72% of the finished products' value) and foreign and 
domestically-sourced electromagnetic clutches. The application 
indicates that 32 percent of the finished air-conditioner compressors' 
material value will be U.S. sourced within two years.
    Zone procedures would exempt Seltec from Customs duty payments on 
the foreign components used in export activity (some 50% of shipments). 
On its domestic sales, Seltec would be able to elect the duty rate that 
applies to finished automotive air-conditioner compressors (2.0%) for 
the foreign electromagnetic clutches as they are processed for Customs 
entry, rather than the higher rate on electromagnetic clutches (3.6%). 
The motor vehicle duty rate (2.5%) could apply to the foreign 
electromagnetic clutches that are shipped as part of air-conditioner 
compressors to motor vehicle assembly plants with subzone status for 
inclusion into finished motor vehicles under FTZ procedures. The 
application indicates that the savings from FTZ procedures would help 
improve the plant's international competitiveness.
    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 November 29, 1996. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to December 16, 1996).
    A copy of the application will be available for public inspection 
at the following location: Office of the Executive Secretary, Foreign-
Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th Street 
and Pennsylvania Avenue, NW., Washington, DC 20230.

    Dated: October 22, 1996.
John J. Da Ponte, Jr.
Executive Secretary
[FR Doc. 96-27856 Filed 10-29-96; 8:45 am]
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