DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 17-82]
47 FR 35543
August 16, 1982
Foreign-Trade Zone 46, Cincinnati, Ohio; Application for Subzone in Celina,
TEXT: Notice is hereby given that an application has been submitted to the
Foreign-Trade Zones Board (the Board) by the Greater Cincinnati Foreign-
Trade Zone, Inc. (GCFTZ), a non-profit Ohio corporation affiliated with the
Greater Cincinnati Chamber of Commerce and grantee of Foreign-Trade Zone 46
in Cincinnati, Ohio, requesting authority to establish a special-purpose
subzone for the Huffy Corporation's bicycle manufacturing plant in Celina,
Ohio. 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 July
30, 1982. The applicant is authorized to make this proposal under House
Bill 200, 1977 Laws of Ohio.
On January 12, 1979, the GCFTZ received authority to establish a
foreign-trade zone project in the Cincinnati port of entry area (Borad
Order 141, 44 FR 4003, 1/19/79). The public facilities involve a 100-acre
industrial park site in Butler County, Ohio (FTZ 46), where construction
is underway. GCFTZ is presently the sponsor of subzones at the General
Electric aircraft engine assembly plant in Evendale and the Honda
motorcycle and automobile assembly facilities in Union County.
GCFTZ now requests subzone status for the 39-acre bicycle manufacturing
plant of Huffy Corporation, located at Lake and Haverman Roads, Celina,
Ohio. The facility produces some 2.5 million childrens and lightweight
bicycles and a number of bicycle parts, employing 1900 persons. Plant
operations include manufacturing and finishing of parts, and final
assembly. Over 40 percent of the parts for the lightweight bicycles and
about 20 percent of the parts for the childrens bicycles are purchased
from foreign sources, including brakes, chains, wheel hubs, derailleurs,
control levers, tires, rims, seats and pedals.
Zone procedures will exempt Huffy from Customs duties on parts and
components used for exports. On its domestic sales, the company will be
able to take advantage of the duty rates that apply to finished imported
bicycles which accounted for over 20 percent of the U.S. market in 1980.
The duty rates on commonly imported parts range from 12.8 to 15.0 percent,
whereas the duty rate on childrens bicycles is 11.0 percent and on
lightweight bicycles, 5.5 percent. The company estimates that duty savings
from zone procedures could equal up to 2 percent of the retail price of a
bicycle, which, in the current internationally competitive environment,
would be helpful in maintaining operations and employment at the plant.
The proposed site is about 60 miles from the closest Customs port of
entry, and as part of the review of the proposal the question of whether
this meets the "adjacency" requirement of the FTZ Act will be considered.
In accordance with the Board's regulations, an examiners committee has
been appointed to investigate the application and report thereon to the
Board. The committee consists of John J. Da Ponte, Jr. (Chairman),
Director, Foreign-Trade Zones Staff, U.S. Department of Commerce,
Washington, D.C. 20230; Harvey L. Perry, Acting District Director, U.S.
Customs Service, Region IX, 6th Floor, Plaza Nine Bldg., 55 Erieview Plaza,
Cleveland, Ohio 44114; and Colonel Charles E. Eastburn, District Engineer,
U.S. Army Engineer District Louisville, P.O. Box 59, Louisville, Kentucky
Comments concerning the proposed subzone are invited in writing from
interested persons and organizations. They should be addressed to the
Board's Executive Secretary at the address below and postmarked on or
before September 10, 1982.
A copy of the application is available for public inspection at each
of the following locations:
U.S. Dept. of Commerce District Office,
10504 Federal Office Building,
550 Main Street,
Cincinnati, Ohio 45202
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th and Pennsylvania NW., Room 3721,
Washington, D.C. 20230.
Dated: August 10, 1982.
John J. Da Ponte, Jr.,
Executive Secretary, Foreign-Trade Zones Board.
[FR Doc. 82-22239 Filed 8-13-82; 8:45 am]
BILLING CODE 3510-25-M