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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                               [Docket 48-91]

  			Foreign-Trade Zone 15--Kansas
               City, MO; Foreign-Trade Subzone 15E--Kawasaki
   Engine/Transmission Plant, Nodaway County, MO; Request for Removal of

                          Monday, August 26, 1991

A request has been submitted by the Greater Kansas City Foreign-Trade Zone, 
Inc., grantee of FTZ 15 and Subzone (SZ) 15E at the small engine/ 
transmission manufacturing plant of Kawasaki Motors Manufacturing 
Corporation U.S.A. (KMM) in Nodaway County, Missouri, for removal of certain
special restrictions in the Board Order approving SZ 15E. It was formally 
filed on August 15, 1991.

On November 27, 1989, the Board approved subzone status for the KMM plant
(Board Order 454, 54 FR 50257, 12/5/89), subject to three special

1. With regard to all foreign merchandise admitted to the subzone for the
manufacture of small industrial engines, KMM shall elect privileged foreign
status (19 CFR 146.41) beginning two years from the date of subzone
activation (2/1/90).

2. Prior to the expiration of the foregoing two-year time period, the Board
shall conduct a review to determine whether KMM is adhering to the domestic
sourcing plan stated in the application, and whether there is no
significant evidence of harmful economic effects; and, a two-year extension
of the original period shall be considered if a positive determination is
made on both these factors.

3. KMM shall elect privileged foreign status on any foreign merchandise
subject to antidumping and countervailing duty orders upon its admission to
the subzone.

KMM requests removal of restrictions 1 and 2.

The KMM plant produces a variety of small gasoline engines and related
transmissions for small equipment (construction, farm, garden, etc.), and
for motorcycles, jetskis and all-terrain vehicles. Components sourced from
abroad include blocks, heads, shafts, connecting rods, bearings, gears,
casings, springs, fasteners, gauges, and electrical parts.

Zone procedures exempt KMM from Customs duty payments on foreign components
used in products that are exported. On domestic sales, the company is able
to choose the rate that applies to completed engines and transmissions
(0.0- 4.2%). The rates on materials and components range from 0.2 to 11.0

Restrictions 1 and 2 reflect the fact that the Board's initial approval
took into account sourcing plans outlined in the original application,
indicating that some 70 percent of the value of each engine model and
related transmission would involve domestic inputs within 4 years of the
shift of production to the United States of each engine model. The request
indicates that KMM has within one year achieved a 70 percent domestic value
level for its first two models.

Comments concerned the request are invited in writing from interested
parties. They should be addressed to the Board's Executive Secretary at the
address below on or before October 15, 1991.

A copy of the request is available for public inspection at: 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, 
14th & Pennsylvania Avenue, NW., room 3716; 
Washington, DC 20230.

Dated: August 20, 1991.

Dennis Puccinelli,

Acting Executive Secretary.

[FR Doc. 91-20426 Filed 8-23-91; 8:45 am]