Import Administration
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last update: September 2002 
[Docket 76-96]

Foreign-Trade Zone 176--Rockford, IL; Application for Subzone
Status, Nissan Industrial Engine Manufacturing USA, Inc., Plant (Spark
Ignition Industrial Engines), Marengo, IL

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Greater Rockford Airport Authority, grantee of FTZ 176, requesting special-purpose subzone status for the spark ignition industrial engine manufacturing plant of Nissan Industrial Engine Manufacturing USA, Inc. (NIEM) (a Nissan Kohki Co., Ltd./Nissan Forklift Corporation, North America joint venture), located in Marengo, Illinois. 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 October 16, 1996.

The NIEM plant (11 acres/66,000 sq.ft.) is located at 19720 East Grant Highway (U.S. 20) in Marengo (McHenry County), some 66 miles west of Chicago, Illinois. The plant (28 employees) is used to produce spark ignition industrial engines (ranging from 40 to 70 hp) used in forklift trucks, construction equipment, generators, welders, and irrigation equipment (HTS# 8407.90.1010) for export and the domestic market. Most of the finished engines are shipped to U.S. forklift truck manufacturers. The production process involves assembly, testing, and warehousing. Components purchased from abroad (about 72% of total, by value) include: crankcases (blocks), cylinder heads, intake/exhaust manifolds, balancer shafts, connecting rods, piston sets, crankshafts, rocker arms, intake/exhaust valves, bearings, housings, flywheels, pulleys, gaskets, camshafts, timing chains, water pumps, magnetos, fasteners, spark plugs, gauges, electrical components, thermostats, oil filters, hoses and plastic molded parts (duty rate range: 0.4-9.1%). The application indicates that U.S.-sourced components will comprise some 29 percent of the finished engines' value within three years.

Zone procedures would exempt NIEM from Customs duty payments on the foreign components used in export production. On its domestic sales, the company would be able to choose the duty rate that applies to finished industrial engines (duty free) for the foreign inputs noted above. The application indicates that subzone status 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 24, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period (to January 8, 1997).

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

U.S. Export Assistance Center--Branch Office, P.O. Box 1747, 515 North Court Street, Rockford, IL 61110. Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue, NW, Washington, DC 20230-0002.

Dated: October 17, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-27360 Filed 10-24-96; 8:45 am]