[Federal Register Volume 62, Number 43 (Wednesday, March 5, 1997)]
[Notices]
[Pages 10022-10023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5404]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 10-97]
Foreign-Trade Zone 38, Spartanburg, SC; Request for Manufacturing
Authority, Zeuna Starker USA, Inc., (Automotive Exhaust Systems)
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the South Carolina State Ports Authority, grantee of FTZ
38, pursuant to Sec. 400.28(a)(2) of the Board's regulations (15 CFR
part 400), requesting authority on behalf of Zeuna Starker USA, Inc.
(ZSUSA) (a subsidiary of Zeuna Starker GmbH & Co., KG, Germany), to
manufacture automotive exhaust systems under FTZ procedures within FTZ
38, with certain restrictions applicable to foreign stainless steel
materials. It was formally filed on February 18, 1997.
The ZSUSA plant is located at 2651 New Cut Road within the proposed
Site 4 of FTZ 38 in the Wingo Corporate Park, Spartanburg, South
Carolina (Docket 65-96, 61 FR 45400, 8-29-96). The ZSUSA plant (50
employees) is used to manufacture exhaust systems for automotive
applications that are sold in the U.S. and exported. Components sourced
from abroad (about 80% of total) include: Catalytic converters, muffler
boxes, flanges, fasteners, helical pressure and threaded inserts,
brackets, stainless steel alloy pipe, and monoliths (duty rate range:
0.1-5.3%). The
[[Page 10023]]
application indicates that the majority of the plant's current output
is shipped to BMW Manufacturing Corporation's auto plant in
Spartanburg, South Carolina. Some two percent of the ZSUSA plant's
shipments are exported.
FTZ procedures would exempt ZSUSA from Customs duty payments on the
foreign components used in export production. On its domestic sales,
ZSUSA would be able to choose the duty rate during Customs entry
procedures that applies to finished auto exhaust systems (2.7%) for the
foreign inputs noted above, except that foreign status stainless steel
pipe would be admitted to FTZ 38 in privileged foreign status (19 CFR
146.41), making such materials subject to the full duty normally
applicable. The motor vehicle duty rate (2.5%) could apply to the
foreign components in the finished exhaust systems, which are not in
privileged foreign status, and that are shipped to the BMW plant (FTZ
Subzone 38A) or other U.S. motor vehicle assembly plants with subzone
status for manufacture into finished motor vehicles under FTZ
procedures. FTZ procedures would also exempt the foreign components
that become scrap during the production process (about 0.08% for
stainless steel pipe; 4% for the other foreign items) from Customs
duties. The request indicates that the savings from FTZ procedures
would help improve the ZSUSA 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 May 5, 1997. Rebuttal comments in response
to material submitted during the foregoing period may be submitted
during the subsequent 15-day period (to May 19, 1997).
A copy of the application and the accompanying exhibits will be
available for public inspection at the following location: Office of
the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of
Commerce, Room 3716, 14th Street & Pennsylvania Avenue, NW, Washington,
DC 20230.
Dated: February 24, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-5404 Filed 3-4-97; 8:45 am]
BILLING CODE 3510-DS-P
