[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Notices]
[Pages 37496-37497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17639]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 33-99]


Foreign-Trade Zone 59--Lincoln, NE; Application for Expansion of 
Manufacturing Authority--Subzone 59A, Kawasaki Motors Manufacturing 
Corp., U.S.A., Plant, Lincoln, NE (Motorcycles, Personal Watercraft, 
All-Terrain Vehicles, Utility Work Trucks, Industrial Robots)

    A application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Lincoln Foreign Trade Zone, Inc., grantee of 59, 
requesting an expansion of the scope of manufacturing authority to 
include new manufacturing capacity under FTZ procedures and requesting 
authority to expand the boundary of FTZ Subzone 59A at the Kawasaki 
Motors Manufacturing Corp., U.S.A. (KMM), plant in Lincoln, Nebraska. 
It was formally filed on June 25, 1999.
    Subzone 59A was approved by the Board in 1980 with authority 
granted for the manufacture of motorcycles, jet skis, and four wheel 
all-terrain vehicles (Board Order 163, 45 FR 58637, 9-4-80). The 
subzone was subsequently expanded in 1994 (Board Order 712, 59 FR 
66891, 12-28-94) and currently consists of a single, 305-acre site with 
a total of 1.13 million square feet of manufacturing and warehouse 
space. The Board later approved the manufacture of off-road, utility 
work trucks and industrial robots with 6 or more axes of motion under 
FTZ procedures for the U.S. market and export (Board Orders 744 and 
745, 60 FR 30517, 6-9-95) .
    The applicant is now requesting authority to expand the subzone 
boundary to include an adjacent 27-acre parcel and to expand the scope 
of FTZ manufacturing authority to include increased capacity for the 
production of motorcycles, personal watercraft , all-terrain vehicles, 
utility work trucks, and industrial robots. Under the current expansion 
plan, the KMM plant's

[[Page 37497]]

capacity will be approximately doubled (to 225,000 units per year) with 
the addition of 1.07 million square feet of production area. The 
activity will involve fabrication, welding, molding, and assembly using 
domestic and foreign-origin components. The application indicates that 
the expanded operations will reduce the current level of foreign-
sourced components used in the manufacturing process. Foreign-sourced 
components and materials (about 40 percent of the finished vehicles' 
material value) include: plastic parts, rubber belts, fasteners, air 
and liquid pumps/compressors, data processing equipment (numerical 
controllers) and parts, optical readers, valves and switches, electric 
motors and transformers, parts of industrial robots, transmissions/gear 
boxes, clutches, diodes, transistors, semiconductors, liquid crystal 
devices, measuring instruments, spark-ignition/diesel engines, 
transmissions, calipers/brake parts, wheels, tires, parts of rubber, 
articles of agglomerated cork, paperboard/cardboard boxes, glazers 
putty, caulking, glue/adhesive, plastic tubes/pipes/fittings, 
reflective sheet, polyurethane and PVC sheet/film/laminates, plastic 
knobs/handles/gaskets/washers/seals/fasteners, V-belts, decals, printed 
materials, cargo nets, non-electrical graphite/carbon items, safety 
glass, mirrors, profiles/tubes/sections/couplings/wire of alloy, cast 
or stainless steel, chain, fasteners, steel/copper springs, brake 
cables, aluminum tubes/pipes/fittings/fasteners, articles of lead, base 
metal articles, heat exchangers, filters, bearings and related 
assemblies, gears, transmission shafts, torque converters, pulleys, 
ball/roller screws, sprockets, flywheels, propellers, electric motors, 
commutators, capacitors, fuses, switches, resistors, stators, rotors, 
inductors, transformers, electromagnetic couplings, batteries, ignition 
components, starters, alternators, voltage regulators, lighting 
equipment, horns, audio components, radios, cassette players, 
navigational equipment, alarm systems, electronic components, fiber 
optic and coaxial cables, wire, parts of motor vehicles (Heading 8708), 
hulls, flat panel displays, measuring and process control instruments, 
thermostats, gauges, and clocks (duty rate range: free-15%, 
16 cents+2.5%).
    FTZ procedures exempt KMM from Customs duty payments on the foreign 
components used in export production (15% of shipments). On its 
domestic sales, the company can choose the duty rate that applies to 
the finished motorcycles, personal watercraft, all-terrain vehicles, 
utility work trucks, and industrial robots (free-2.8%) for the foreign 
components noted above. The request indicates that the savings from FTZ 
procedures will continue to help improve the facility'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 September 10, 1999. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to September 27, 1999).
    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 
& Pennsylvania Avenue, NW, Washington, DC 20230.

    Dated: June 28, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-17639 Filed 7-9-99; 8:45 am]
BILLING CODE 3510-DS-P