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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 31-84] 
                                  49 FR 23669 
                                  June 7, 1984 
Foreign-Trade Zone 21, Dorchester County, South Carolina; Application for 
Subzone for Porsche Auto Plant in Charleston, South Carolina  
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the South Carolina State Ports Authority, grantee of Foreign-
Trade Zone 21, requesting special-purpose subzone status for the automobile 
preparation facility of Porsche Cars North America, Inc. (PCNA) located in 
Charleston, South Carolina, within the Charleston 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 June 1, 1984. The applicant is 
authorized to make this proposal under section 54-3-230 of Code of Laws of 
South Carolina.  
   The proposed subzone for PCNA will be located on airport property 
adjacent to the cargo apron at Charleston International Airport in 
Charleston. The 13-acre facility will be used to prepare high-performance 
sports cars for sale in the U.S. market, employing 50 persons. Processes 
would include dewaxing, installation of parts and accessories, performing 
mechanical modifications, painting and making minor body corrections. The 
facility will also serve as a parts warehouse and distribution center. PCNA 
is establishing a similar facility in Reno, NV (see FTZ Board Docket No. 
30-84). The autos will arrive from abroad as essentially finished products, 
however, PCNA will consider purchasing domestically parts such as tires, 
batteries, glass, air conditioners and radios/tape players to be added 
prior to entry. Spare parts would be sourced primarily abroad. 
   Zone procedures will allow PCNA to defer duty payment on complete autos 
and parts until they are shipped to dealers. Because parts inventory 
turnover is slow and because the autos are high-valued items which require 
substantial prep-time, the savings from duty deferral appear to be 
significant. On certain foreign parts added to the autos, the company can 
also take advantage of the same duty rate that is available to importers 
that ship fully completed autos from abroad. These savings will encourage 
PCNA to add value in the U.S. while helping it to compete with imported 
sports cars modified 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; Ralph C. Muser, 
Acting Deputy Assistant Regional Commissioner, U.S. Customs Service, 
Southeast Region, 99 SE. 5th Street, Miami, FL 33131; and Lt. Colonel Lee 
Smith, District Engineer, U.S. Army Engineer District Charleston, P.O. Box 
919, Charleston, SC 29402.  
   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 July 10, 1984.  

   A copy of the application is available for public inspection at each of 
the following locations: 
Port Director's Office, 
U.S. Customs Service, 
200 E. Bay Street, P.O. Box 876, 
Charleston, SC 29402 
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: June 1, 1984 
John J. Da Ponte, Jr., 
   Executive Secretary.   
[FR Doc. 84-15255 Filed 6-6-84; 8:45 am]