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                           DEPARTMENT OF COMMERCE

                 [Docket 19-91; Foreign-Trade Subzone 78A]

       Nissan Auto/Truck Plant, Smyrna, TN; Application for Expansion

                           Friday, April 19, 1991

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the Metropolitan Nashville Port Authority, grantee of FTZ 78 and 
Subzone 78A, at the automobile and pickup truck manufacturing plant of 
Nissan Motor Manufacturing Corporation U.S.A., located in Smyrna, Tennessee,
requesting authority to expand the subzone and the scope of manufacturing 
authority. 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 April 8, 1991.

Subzone 78A was approved in 1982 for the manufacture of pickup trucks
(Board Order 190, 47 FR 16191, 4/12/82), and the scope of manufacturing
authority was expanded to include automobiles in 1984 (Board Order 272, 49
FR 35395, 9/7/84). Plant operations include the assembly of some 250,000
vehicles annually and the assembly of certain components such as engines
and axles for those vehicles.

Nissan is now planning to expand operations at the Smyrna plant and
requests that its subzone authority be extended to include the changes. The
company proposes to expand its physical plant onto a 179-acre parcel
adjacent to the existing 825-acre plant. It also plans to expand production
to add a line for a new model (mid-sized sedan). Production capacity would
increase to some 450,000 units per year. In addition, the company is
planning to produce engines, body and other subassemblies for a Nissan/Ford
van that will be assembled at an existing Ford facility.

The new operations will use foreign sourced materials and components
similar to those used in existing production, including engines and parts,
steel, and components for drivetrain, steering, braking, suspension and
electrical systems, as well as body parts, accessories, air conditioning
equipment, wheels and tires. The application indicates that the value of
foreign material and components will continue at the present level
(currently, about 60% of total material/component value is foreign).
Specific items to be sourced from abroad for the new production include
engine parts, transmissions, steel, pumps, fasteners, brake parts,
electrical equipment, signal equipment and speedometer parts.

Zone procedures would exempt Nissan from Customs duty payments on foreign
parts that are used in production for export. On domestic sales, it would
be able to choose the finished auto duty rate (2.5%). On shipments to the
other auto assembly subzone duties could be paid when the finished vehicle
leaves the plant and that company could choose the finished auto duty rate.

The duty rates on the foreign components range from zero to 9.5 percent.
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; Joel Mish, 
District Director, U.S. Customs Service, South Central Region, 423 Canal 
Street, suite 337, New Orleans, LA 70130-2341; and, Colonel James P. King, 
District Engineer, U.S. Army Engineer District Nashville, P.O. Box 1070, 
Nashville, TN 37202-1070.

Comments concerning the proposed subzone expansion are invited in writing
from interested parties. They should be addressed to the Board's Executive
Secretary at the address below on or before June 3, 1991.

A copy of the application is available for public inspection at each of the
following locations:
U.S. Department of Commerce, District Office, 
Parkway Towers, suite 114,
404 James Robertson Parkway, 
Nashville, TN 37219-1505.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, 
14th & Pennsylvania Avenue, NW., room 4213 
Washington, DC 20230.

Dated: April 12, 1991.

John J. Da Ponte Jr.

Executive Secretary.

[FR Doc. 91-9206 Filed 4-18-91; 8:45 am]