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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
 
                               [Docket No. 27-83] 
 
                                  48 FR 37504 
 
                                August 18, 1983 
 
 
Foreign-Trade Zone 49, Newark/Elizabeth, New Jersey; Application for 
Subzone at Ford's Auto Assembly Plant in Edison, New Jersey 
 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port Authority of New York and New Jersey, grantee of 
Foreign-Trade Zone 49, Newark/Elizabeth, New Jersey, requesting a 
special-purpose subzone at Ford Motor Corporation's automobile assembly 
plant in Edison, New Jersey, within the New York Customs port of entry. 
The application was submitted 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 July 27, 1983. The 
application is authorized to make this proposal under Section 12:13-1 of 
the New Jersey Statutes Annotated.  
 
   On April 6, 1979, the Board authorized the Port to establish a 
foreign-trade zone project in the Newark/Elizabeth area (Board Order 146, 
44 FR 22502, 4/16/79). It was expanded on May 26, 1983 (Board Order 211, 
48 FR 24958, 6/3/83). The project covers 2100 acres in the Newark/
Elizabeth Port Authority Marine Terminal.  

   The proposed subzone will involve the Ford Auto assembly plant covering 
77 acres on U.S. Highway 1, Edison, Middlesex County, New Jersey, some 18 
miles from Newark. The facility has recently been renovated to produce the 
front-wheel drive Escort/Lynx model automobiles. Through the majority of 
the parts used at the plant are produced domestically, some 18 percent are 
dutiable items, such as transaxles, radios, and electronic parts. 
 
   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 take advantage of the same duty rate available to importers of 
finished autos. The average duty rate for the foreign components used at 
the Edison plant is 3.8 percent compared with a 2.8 percent rate for 
finished autos. The savings from zone procedures are expected to contribute 
to Ford's efforts to reduce production costs, helping it compete with 
offshore auto production facilities. Subzone status at the 1600-employee 
Edison plant would be a contributing factor in helping increase plant 
employment to its former level of over 2000.  
 
   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; Benjamin C. 
Jefferson, Area Director, U.S. Customs Service, New York Region, Room 
210 A, Airport International Plaza, Newark NJ 07114; and Colonel F. H. 
Griffis, District Engineer, U.S. Army Engineer District New York, 26 
Federal Plaza, New York, NY 102783.  

   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 September 26, 1983.  

   A copy of the application is available for public inspection at each of 
the following locations: 
 
 
Area Director's Office, 
U.S. Customs Service, 
Airport International Plaza, Room 210 A, 
Newark, New Jersey 07114 
 
 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 1872, 
14th and Pennsylvania Ave., NW., 
Washington, D.C. 20230  
 
   Dated: August 11, 1983. 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.   
[FR Doc. 83-22757 Filed 8-17-83; 8:45 am] 
 
   BILLING CODE 3510-25-M