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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 7-83] 
                                  48 FR 13067 
                                 March 29, 1983 
Foreign-Trade Zone 26, Shenandoah, Georgia (Atlantic Port of Entry) Application for Subzone at General Motors Auto Assembly Plants in Atlanta and Doraville, Georgia

TEXT: Notice is hereby given that an application has been submitted to the Foreign-Trade Zones Board (the Board) by the Georgia Foreign Trade Zone, Inc. (GFTZ), grantee of Foreign-Trade Zone 26, requesting special-purpose subzone status for General Motors Corporation's (GM) auto assembly plants in Atlanta and Doraville, Georgia, within the Atlanta 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 March 18, 1983. The applicant is authorized to make this proposal under Chapter 10, Title 52 of the Official Code of Georgia Annotated.

On January 17, 1977, the Board authorized GFTZ to establish a foreign-trade zone project in the Atlanta area (Board Order 115, 42 FR 4186, 1/24/77). The project covers 33 acres at Shenandoah in Coweta County, some 23 miles south of Atlanta's international airport. Over $14 million in merchandise was received by the zone in FY 1982.

The subzone would involve GM's Atlanta area auto assembly plants in Atlanta (Lakewood) and Doraville. The Lakewood plant covers 85 acres at Sawtell and McDonough Boulevard in Atlanta. The Doraville plant covers 139 acres at 3900 Motors Industrial Way, Doraville.

The Lakewood plant has an annual capacity for producing over 100,000 Chevette-model automobiles, employing over 1800 workers. Although it uses mostly domestic material, certain components are sourced abroad, such as automatic transmissions, optional diesel engines, solenoids, wiring harnesses and seat covers, which account for less than 5 percent of material value.

The Doraville plant produces over 200,000 Century and Cutlass-model automobiles annually and employs 5500 workers. Foreign content on these vehicles is less than 2 percent and includes optional engines, brake hoses and radios.

Exports account for 7.5 percent of production at the Doraville plant and the company expects to resume exporting from the Lakewood plant when market conditions improve. Zone procedures will exempt GM from paying duties on foreign components used in these 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 GM uses at the Lakewood and Doraville plants is about 4.4 and 3.8 percent respectively, whereas the rate for automobiles 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 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; Charles W. Winwood, Director (Inspection and Control), U.S. Customs Service, Southeast Region, 99 S.E. 5th Street, Miami, Florida 33131; and Colonel Charles E. Dominy, District Engineer, U.S. Army Engineer District Savannah, P.O. Box 889, Savannah, Georgia 31402.

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 April 28, 1983.

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

U.S. Department of Commerce District Office, 1365 Peachtree Street, N.E., Suite 600, Atlanta, Georgia 30309

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

Dated: March 23, 1983.

John J. Da Ponte, Jr.,

Executive Secretary. [FR Doc. 83-7987 Filed 3-28-83; 8:45 am]