DEPARTMENT OF COMMERCE
Foreign-Trade Zone 183--Austin, TX; Application for Subzone Dell Computer
Corp. Personal Computer Plant
Monday, March 9, 1992
An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Foreign Trade Zone of Central Texas, Inc., grantee of FTZ 183,
requesting special-purpose subzone status at the personal computer
manufacturing plant of Dell Computer Corporation (Dell) located in the City
of Austin, Travis County, Texas. 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 2, 1992.
Dell is an international producer of personal computers (PCs) and related
products with annual sales of over $850 million. It has plants in the U.S.
and the U.K.
Dell's Austin facility (40 acres) is located in the Braker Center
Industrial Park at the intersection of Braker Lane and Metric Blvd. The
facility employs 1,900 and is used to assemble personal computers,
including portables, desktops, workstations, and power line servers. Dell
also sells a complete line of personal computer-related products and
peripherals including software, printers, monitors, and accessories,
manufactured by third parties.
Some 60 percent of the components for PC production are pruchased from
abroad including computer processing units, keyboards, disc drives,
monitors, printers, power supplies, batteries, AC adapters, modems, mouses,
ribbons, manuals, carrying cases, software, portable computer kits, and
related computer components and supplies. Currently, one-third of the
products are exported.
Zone procedures would exempt Dell from Customs duty payments on the foreign
components used in products made for export. On domestic sales, the company
would be able to choose the duty rates that apply to the finished products
(3.9 percent). The rates on components range from duty-free to 4.7 percent
(average--3.8 percent. Foreign merchandise and merchandise to be exported
would also be exempt from state and local ad valorem taxes. The application
indicates that zone savings would help improve the international
competitiveness of Dell's Austin plant and increase export sales.
In accordance with the Board's regulations (as revised, 56 FR 50790-50808,
10- 8-91), a member of the FTZ Staff has been designated examiner to
investigate the application and report to the Board.
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 May 8, 1992.
Rebuttal comments in response to material submitted during the foregoing
period may be submitted during the subsequent 15-day period (to May 25,
A copy of the application and accompanying exhibits will be available for
public inspection at each of the following locations:
U.S. Department of Commerce District Office,
P.O. Box 12728, suite 1200,
816 Congress Ave.,
Austin, Texas 78711.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 3716,
14th Street and Constitution Avenue NW.,
Washington, DC 20230.
Dated: March 3, 1992.
John J. Da Ponte, Jr.,
(FR Doc. 92-5420 Filed 3-6-92; 8:45 am)