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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 11-83] 
                                  48 FR 19920 
                                  May 3, 1983 
Foreign-Trade Zone 70; Application for Subzone at Ford Auto Plant, Dearborn, Michigan

TEXT: An application has been submitted to the Foreign-Trade Zones Board (The Board) by the Greater Detroit Foreign-Trade Zone, Inc. (GDFTZ), a Michigan non-profit corporation and grantee of Foreign-Trade Zone 70, requesting authority for a special-purpose subzone at a Ford Motor Corporation auto assembly plant in Dearborn, Michigan, within the Detroit Customs port of entry. It was sumbitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR Part 400). It was formally filed on April 21, 1983. The applicant is authorized to make this proposal under Chapter 447, Act 154, Michigan Public Acts of 1963 (MSA 21.302(1)).

On July 21, 1981, the Board authorized GDFTZ to establish a foreign trade zone project in the Detroit area (Board Order 176, 46 FR 38941, July 30, 1981). General-purpose zone facilities are located at the Clark Street Port facility in Detroit and at a distribution complex in Dearborn. The project also includes subzones at Ford's tractor plant in Romeo, Michigan, at Chrysler's Jefferson Assembly Plant in Detroit, and at Ford's Wayne auto assembly plant.

GDFTZ now requests subzone status for Ford's Dearborn plant, which covers 72 acres at 3001 Miller Road in Dearborn, Michigan, some 12 miles from downtown Detroit. The facility is used for the assembly of compact automobiles. Although most of the parts and material used at the plant are produced domestically, about 6 percent of the components, such as radios, engines and transmissions, are imported.

Zone procedures will exempt Ford from paying duties on foreign components used for its exports. On its domestic sales, the company will be able to defer duty and to take advantage of the same duty rate available to importers of finished autos. The average duty rate for the foreign components Ford uses at its plant is 4.5 percent whereas the rate for finished autos is 2.8 percent. The savings from zone procedures are expected to contribute to Ford's efforts to reduce plant costs, helping to make it more competitive with auto production facilities offshore. This will encourage Ford to keep the Dearborn facility in operaton and create an environment which could lead to a possible increase in the plant's workforce, currently some 3200 persons.

In accordance with the Board's regulations, an examiners committee has been appointed to investigate the application and report to the Board. The committee consists of: Dennis Puccinelli (Chairman), Foreign-Trade Zones Staff, U.S. Department of Commerce, Washington, D.C. 20230; Louis A. Mezzano, District Director, U.S. Customs Service, North Central Region, 447 Michigan Avenue, Detroit, Michigan 48226; and Colonel Raymond T. Beurket, District Engineer, U.S. Army Engineer District Detroit, P.O. Box 1027, Detroit, Michigan 48231.

Comments concerning the proposed subzone are invited in writing from interested persons and organizations. They should be addressed to the Board's Executive Secretary at the address below and postmarked on or before June 3, 1983.

A copy of the application is available for public inspection at each of the following locations:

U.S. Department of Commerce District Office, Federal Building, Room 445, 231 West Lafayette Street, Detroit, Michigan 48226

Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce, Room 1872, 14th and Pennsylvania, N.W., Washington, D.C. 20230

Dated: April 26, 1983.

John J. Da Ponte, Jr.

Executive Secretary. [FR Doc. 83-11739 Filed 5-2-83; 8:45 am]