97-5404. Foreign-Trade Zone 38, Spartanburg, SC; Request for Manufacturing Authority, Zeuna Starker USA, Inc., (Automotive Exhaust Systems)  

  • [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
    
    
    

Document Information

Published:
03/05/1997
Department:
Commerce Department
Entry Type:
Notice
Document Number:
97-5404
Pages:
10022-10023 (2 pages)
Docket Numbers:
Docket 10-97
PDF File:
97-5404.pdf