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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 24-90] 
                                  55 FR 26720 
                                 June 29, 1990 
   Foreign-Trade Zone 66 -- Wilmington, NC; Application for Subzone Deere-
Hitachi Construction Machinery, Kernersville 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the North Carolina Department of Commerce, grantee of FTZ 66,
requesting special-purpose subzone status at the hydraulic excavator 
manufacturing plant of Deere-Hitachi Construction Machinery Corporation 
(DHCM) (joint venture between Deere and Company and Hitachi Construction 
Machinery Company, Ltd.) located in Kernersville, North Carolina, adjacent 
to the Winston-Salem 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 18, 1990. 
   The new DHCM plant is located at West Mountain Street and Perry Road, 
Kernersville. Established in 1988, the facility (61 acres, 150 employees) 
began production of hydraulic excavators in mid-1989. Some 70 percent of 
the components are currently sourced abroad, including chassis, boom 
cylinders, bucket cylinders, arm cylinders, swing bearings, front idlers, 
track assemblies, track rollers, springs, propel motor and center joints. 
Some 25 percent of the plant's production is exported. 
   Zone procedures would exempt DHCM from Customs duty payments on foreign 
items used in its exports. On its domestic sales, the company would be able
to choose the finished excavator duty rate (2%). Duty rates on the foreign 
sourced components range from 2.5 to 11.0 percent. The application 
indicates that zone procedures will help improve DHCM's international 
   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, DC 20230; Howard Cooperman, 
Regional Director, Inspection and Control, U.S. Customs Service, South 
Central Region, 909 SE. First Avenue, Miami, FL 33131; and, Lt. Colonel 
Thomas C. Suermann, District Engineer, U.S. Army Engineer District 
Wilmington, P.O. Box 1890, Wilmington, NC 28402. 
   Comments concerning the proposed subzone are invited in writing from 
interested parties. They should be addressed to the Board's Executive 
Secretary at the address below and postmarked on or before August 16, 1990.
   A copy of the application is available for public inspection at each of 
the following locations: 
Port Director's Office, 
U.S. Customs Service, suite 432, 
251 N. Main Street,  
Winston-Salem, NC 27101. 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, room 2835, 
14th & Pennsylvania Avenue, NW., 
Washington, DC 20230.  
   Dated: June 22, 1990. 
John J. Da Ponte, Jr., 
   Executive Secretry.   
[FR Doc. 90-15078 Filed 6-28-90; 8:45 am]