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last update: September 2002 


                           DEPARTMENT OF COMMERCE

                               (Docket 29-92)

   Foreign-Trade Zone 40, Cleveland, OH; Application for Subzone; Lincoln
  Electric Co.; Euclid and Mentor (Cleveland area), Ohio (Arc Welding 
		       Equipment, Rods and Other Supplies)

                        Tuesday, September 22, 1992

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the Cleveland-Cuyahoga County Port Authority, grantee of FTZ 40, 
requesting special-purpose subzone status for the arc welding equipment/ 
supplies manufacturing facilities of the Lincoln Electric Company (Lincoln) 
in Euclid and Mentor, Ohio, within the Cleveland 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 September 8, 1992.

Lincoln's Cleveland area facilities are located at 2 sites (227 acres):
Site 1 (120 acres)--world headquarters and manufacturing facility, 22801
St. Clair Avenue, Euclid, Cuyahoga County; Site 2 (107
acres)--manufacturing facility, 6500 Heisley Road, Mentor, Lake County.
The facilities (2,500 employees) are used to produce arc welding equipment,
steel and steel alloy welding electrodes (rod and wire) and other welding
consumables, such as flux. While Lincoln also produces industrial electric
motors at these facilities, authority to manufacture the motors under zone
procedures is not requested at this time. Up to 25 percent of the
components used in the production of welding electrodes are sourced abroad,
including nickel, iron, and steel bars (carbon, alloy, and stainless),
stainless steel wire, mineral ores, metal powders, and welding rods and
wire. Also, some 15 percent of the components incorporated into welding
equipment are foreign- sourced, including diesel engines, industrial
robots, ball bearings, and welder parts. Exports account for 15-20 percent
of production.

Zone procedures would exempt Lincoln from Customs duty payments on foreign
parts that are used in its export production. On its domestic sales, it
would be be able to choose the duty rate that applies to the finished
product (welding equipment--2%, welding rod--duty free). The duty rates on
foreign components range from duty-free to 11 percent. The application
indicates that zone savings will help improve the plant's competitiveness
and increase exports.

In accordance with the Board's regulations, a member of the FTZ Staff has
been designated examiner to investigate the application and report to the

Public comment is invited from interested parties. Submissions (original
and 3 copies) shall be addressed to the Board's Executive Secretary at the
address below. The closing period for their receipt is November 23, 1992.
Rebuttal comments in response to material submitted during the foregoing
period may be submitted during the subsequent 15-day period (to December 7,

A copy of the application and accompanying exhibits will be available for
public inspection at each of the following locations:

Office of the District Director, 
U.S. Department of Commerce, Room 600, 
668 Euclid Avenue, 
Cleveland, Ohio 44114.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 3716,
14th & Pennsylvania Avenue, NW., 
Washington, DC 20230.

Dated: September 11, 1992.

John J. Da Ponte, Jr.,

Executive Secretary.
(FR Doc. 92-22980 Filed 9-21-92; 8:45 am)