DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 8-84]
49 FR 10135
March 19, 1984
Foreign-Trade Zone 15, Kansas City, Missouri; Application for Subzone, GM
Auto Plant, Kansas City
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Greater Kansas City Foreign-Trade Zone, Inc. (KCFTZ),
grantee of Foreign-Trade Zone 15, Kansas City, Missouri, requesting
special-purpose subzone status for General Motors Corporation's (GM)
automobile assembly plant in Kansas City, Missouri, within the Kansas City
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 7, 1984. The applicant is authorized to apply for subzones under
a special act of the State of Missouri Legislature, approved June 22, 1971.
On March 23, 1973, the Board authorized the KCFTZ to establish a foreign-
trade zone project with 2 sites in Kansas City, Missouri (Board Order 93,
38 FR 8622, 4/4/73). Another site was added in 1974 (Board Order 102, 39
FR 39487, 11/1/74).
The proposed subzone would cover 87 acres at GM's 118-acre Kansas City
(Leeds) plant located at 6817 Stadium Drive. The facility, which employs
some 4700 workers, produces the Oldsmobile Firenza and the Buick Skyhawk
model automobiles. Although most of the parts and material used at the
plant are produced domestically, 9 percent of the components are imported,
including engines, transaxles, heat shields, wiring harness assemblies,
and absorber bumpers. Some 7 percent of the finished autos are exported.
Zone procedures will exempt GM from paying duties on foreign components
used on its exports. On its domestic sales the company will be able to
defer duty and to take advantage of the same duty rate available to
importers of finished autos. The estimated average duty rate on the
foreign components used by GM is 4.2 percent whereas the rate for finished
autos is 2.7 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; William L.
Duncan, District Director, U.S. Customs Service, North Central Region,
1205 S. Central Ave., St. Louis, MO 63105; and Colonel Gurnie C. Gunter,
District Engineer, U.S. Army Engineer District Kansas City, 700 Federal
Bldg., Kansas City, MO 64106.
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 16, 1984.
A copy of the application is available for public inspection at each
of the following locations:
U.S. Department of Commerce District Office,
601 E. 12th St., Rm. 1845,
Kansas City, MO 64106
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Dept. of Commerce, Room 1872,
14th and Pennsylvania, NW.,
Washington, D.C. 20230
Dated: March 13, 1984.
John J. Da Ponte, Jr.,
[FR Doc. 84-7258 Filed 3-16-84; 8:45 am]
BILLING CODE 3510-25-M