[Federal Register: November 28, 1995 (Volume 60, Number 228)]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
Foreign-Trade Zone 83--Huntsville, AL; Request for Manufacturing
Authority, Cummins/Onan Engine Company, Inc. (Internal-Combustion
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Huntsville-Madison County Airport Authority, grantee
of FTZ 83, pursuant to Sec. 400.28(a)(2) of the Board's regulations (15
CFR Part 400), requesting authority on behalf of Cummins/Onan Engine
Company, Inc. (COECI), to manufacture small internal combustion engines
under zone procedures for the U.S. market and export within FTZ 83. It
was formally filed on November 13, 1995.
COECI operates a facility within FTZ 83 that manufactures gasoline
spark-ignition engines (up to 1,000 cc in size) and diesel engines (up
to 2,800 cc) for golf carts, all-terrain vehicles, portable generators;
and, farm, lawn, and garden equipment (HTS #8407.32.10-.33.30,
8408.20.10, 8408.90.90). Certain components are sourced from abroad (up
to 95% of finished product value at the outset), including: crankcases,
cylinder heads, manifolds, crankshafts, carburetors, connecting rods,
pumps, valves, bearings, fasteners, speed changers, ignition coils,
inductors, magnetos and other ignition components, hoses, and other
related parts (1995 duty rate range: duty free-12.5%). The application
indicates that 60 percent of all parts (by value) will be purchased
from U.S. suppliers within three years of approval of subzone status.
Zone procedures would exempt COECI from Customs duty payments on
the foreign components used in export production. On its domestic
sales, COECI would be able to choose the duty rates that apply to
finished engines (duty free, 3.0%) for the foreign components noted
above. The application indicates that the savings from zone procedures
would help improve the plant's international competitiveness.
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 Board.
Public comment on the application is invited from interested
parties. Submissions (original and three copies) shall be addressed to
the Board's Executive Secretary at the address below. The closing
period for their receipt is December 28, 1995. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to January 12, 1996).
A copy of the application and the accompanying exhibits will be
available for public inspection at the following location: Office of
the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of
3716, 14th Street & Pennsylvania Avenue, NW., Washington, DC 20230.
Dated: November 20, 1995.
John J. Da Ponte, Jr.,
[FR Doc. 95-29068 Filed 11-27-95; 8:45 am]
BILLING CODE 3510-DS-P