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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 44-83] 
                                  48 FR 55889 
                               December 16, 1983 
Foreign-Trade Zone 72, Indianapolis, Indiana; Application for Subzone, 
General Motors Plant (Delco Div.), Kokomo 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Indianapolis Airport Authority, grantee of Foreign-Trade 
Zone 72, requesting special-purpose subzone status for the auto electronics 
manufacturing plant of General Motors Corporation's (GM) Delco Electronics 
Division, located in Kokomo, Indiana, adjacent to the Indianapolis 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 
Indiana Code 3-10-3-2.  
   On September 28 1981, the Board authorized the Airport Authority to 
establish a foreign-trade zone in the Indianapolis area (Board Order 179, 
46 FR 50091, 10/9/18). The project involves 15 acres and an air cargo 
building at the Indianapolis International Airport. 
   The proposed subzone will involve GM-Delco's primary manufacturing 
facility covering 221 acres at three locations in Kokomo: (1) The Home 
Avenue Plant at Home Avenue and Firmin Street; (2) the North Plant at 
Speaker and Washington Street; and (3) the By-Pass Plant at U.S. 31 By-Pass 
and East Boulevard. The facility employs some 9,000 persons and produces 
automobile radios, tape players, speakers, engine control components and 
semiconductor devices. Some 35 percent of the radio components and 7 
percent of the engine control parts are purchased from foreign sources. 
Some 19 percent of the plant's output is exported directly, with much of 
the remainder going to the company's U.S. assembly plants, which in turn 
export about 7 percent of their products.  
   Zone procedures will allow GM to export the finished products without 
paying duties on the foreign parts and material. On the products used in 
the domestic assembly of automobiles, GM can take advantage of the same 
duty rate that is available to importers of finished automobiles. The 
average duty rate on foreign parts used by the Delco facility is estimated 
to be 7.0 percent whereas the rate for finished autos is 2.8 percent. The 
reduction of Customs costs is part of GM's overall program to modernize and 
reduce costs at its U.S. assembly plants, making them more competitive with 
auto assembly facilities abroad.  
   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; John F. Nelson, 
District Director, U.S. Customs Service, North Central Region, 6th Floor, 
55 Erieview Plaza, Cleveland, OH 44114; and Colonel Dwayne G. Lee, District 
Engineer, U.S. Army Engineer District Louisville, P.O. Box 59, Louisville, 
KY 40201.  
   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 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, 
357 Federal Building/Courthouse, 
46 East Ohio Street, 
Indianapolis 46204 
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 D. Da Ponte, Jr., 
   Executive Secretary.  
[FR Doc. 83-33475 Filed 12-15-83; 8:45 am] 
   BILLING CODE 3510-25-M