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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 43-83] 
                                  48 FR 55889 
                               December 16, 1983 
Foreign-Trade Zone 70, Detroit, Michigan; Application for Subzones -- 
General Motor's Ypsilanti and Pontiac Plants 
TEXT: An application has been submitted to the Foreign-Trade Zones Board) 
the Board by the Greater Detroit Foreign-Trade Zone, Inc. (GDFTZ), grantee 
of Foreign-Trade Zone 70, Detroit, requesting subzone status for General 
Motors Corporation (GM) auto assembly plants in Ypsilanti and Pontiac, 
Michigan, adjacent to the Detroit 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 December 1, 1983. The applicant is authorized 
to make this proposal under Act 154 of Public Laws of Michigan, 1953. 
   On July 21, 1981, GDFTZ received authority from the Board to establish a 
foreign-trade zone project in the Detroit area (Board Order 176, 46 FR 38941,
7/30/81). The project's public sites are located in Dearborn and downtown 
Detroit. The project already involves subzones for Chrysler and Ford plants 
in the Detroit area. 
   GDFTZ now requests subzone status for GM's Ypsilanti and Pontiac plants. 
Also called the Willow Run plant, the Ypsilanti facility covers 126 acres 
at 2625 Tyler Road, Ypsilanti, some 16 miles west of Detroit's Metropolitan 
Airport. Employing over 5,600 persons, the plant is used to assemble, paint, 
finish and test Skylark and Omega model automobiles. Some 5 percent of the 
components used are from foreign, sources, including engines, seat covers, 
solenoids, crash pads, and wiring harnesses. About 5 percent of the 
finished autos are exported.   

   The Pontiac plant covers 505 acres at One Pontiac Plaza in Pontiac, some 
15 miles north of Detroit. This facility employs 9,500 persons and produces 
Pontiac's Fiero model automobile. Production processes include stamping, 
assembly, painting, finishing and testing. Though most of the parts and 
material used at the plant are of domestic origin, some 2 percent of the 
components, such as engines, radio components and engine controls, are of 
foreign origin. Almost 10 percent of the plant's finished autos are 
   Zone procedures will exempt GM from duty payments on the foreign parts 
it uses on its exports. On domestic sales, the company will be able to take 
advantage of the same duty rate available to importers of finished autos. 
Overall, the average duty rate on the foreign components used by GM is 4.3 
percent compared with the rate for finished autos of 2.8 percent. The 
savings from subzone status will contribute to the company's overall cost 
reduction program, helping its U.S. plants become more competitive with 
auto production plants offshore. 
   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; Louise A. 
Mezzano, District Director, U.S. Customs Service, North Central Region, 477 
Michigan Ave., Detroit, MI 48226; and Colonel Raymond T. Beurket, District 
Engineer, U.S. Army Engineer District Detroit, P.O. Box 1027, Detroit, MI 
   Comments concerning the proposed subzones are invited in writing from 
interested person and organizations. They should be addressed to the Board's
Executive Secretary at the address below and postmarked on or before January 
18, 1984. 
   A copy of the application is available for public inspection at each of 
the following locations: 
U.S. Dept. of Commerce District Office, 
Federal Building, Room 445, 
231 West Lafayette Street, 
Detroit, MI 48226 and 
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: December 12, 1983. 
John J. Da Ponte, Jr., 
   Executive Secretary.  
[FR Doc. 83-33474 Filed 12-15-83; 8:45 am]