DEPARTMENT OF COMMERCE (DOC)
Foreign-Trade Zones Board
[Docket No. 38-83]
48 FR 49084
October 24, 1983
Foreign-Trade Zone, Wilmington and Kent County, Delaware; Application for
Subzone at Chrysler Auto Plant in Newark, Delaware
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the State of Delaware, through the Delaware Development
Office, requesting special-purpose subzone status for Chrysler Corporation's
auto assembly plant in Newark, Delaware, adjacent to the Wilmington 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
October 17, 1983. The applicant is authorized to make this proposal under
Chapter 75, Title 6 of the Delaware Code.
The State of Delaware submitted an application to the Board for a
general-purpose foreign-trade zone on April 5, 1983 (Docket 9-83, 48 FR
16927, 4/20/83), and Board action on the project is expected in early 1984.
The proposed subzone for Chrysler would involve the company's auto
assembly plant covering 246 acres at 550 South College Street, Newark,
Delaware. Employing 6,000 persons, the facility assembles the company's
K-model automobiles. Although most of the components are of domestic origin,
some of the autos have optional engines which are purchased abroad,
yielding an average foreign content of 3.5 percent. Some 15 percent of the
finished autos is expected to be exported.
Zone procedures will exempt Chrysler from paying duties on foreign
components used in exports. On its domestic sales, the company will be
able to defer duty and to take advantage of the same duty rate that is
available to importers of finished automobiles. The average duty rate on
the foreign parts Chrysler uses at the plant is about 3.8 percent whereas
the rate for automobiles is 2.8 percent. The reduction of Customs costs is
part of Chrysler's effort to modernize and reduce costs at its U.S.
assembly plants, making them more competitive with auto assembly facilities
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; Edward A.
Goggin, Assistant Regional Commissioner, U.S. Customs Service, Northeast
Region, 100 Summer St., Boston MA 02110; and Lt. Colonel Roger L. Baldwin,
District Engineer, U.S. Army Engineer District Philadelphia, 2nd and
Chestnut St., Philadelphia, PA 19106.
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 November 26, 1983.
A copy of the application is available for public insection at each of
the following locations:
Port Director's Office,
U.S. Customs Service,
New Federal Bldg., Room 1218 F,
844 King St.,
Wilmington, DE 19801
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 1872,
14th and Pennsylvania, NW.,
Washington, D.C. 20230
Dated: October 18, 1983.
John J. Da Ponte, Jr.,
[FR Doc. 83-28821 Filed 10-21-83; 8:45 am]