[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] ----------------------------------------------------------------------- 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