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                         DEPARTMENT OF COMMERCE (DOC) 
                           Foreign-Trade Zones Board 
                               [Docket No. 38-83] 
                                  48 FR 49084 
                                October 24, 1983 
Foreign-Trade Zone, Wilmington and Kent County, Delaware; Application for 
Subzone at Chrysler Auto Plant in Newark, Delaware 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the State of Delaware, through the Delaware Development 
Office, requesting special-purpose subzone status for Chrysler Corporation's 
auto assembly plant in Newark, Delaware, adjacent to the Wilmington 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 
October 17, 1983. The applicant is authorized to make this proposal under 
Chapter 75, Title 6 of the Delaware Code. 
   The State of Delaware submitted an application to the Board for a 
general-purpose foreign-trade zone on April 5, 1983 (Docket 9-83, 48 FR 
16927, 4/20/83), and Board action on the project is expected in early 1984.
   The proposed subzone for Chrysler would involve the company's auto 
assembly plant covering 246 acres at 550 South College Street, Newark, 
Delaware. Employing 6,000 persons, the facility assembles the company's 
K-model automobiles. Although most of the components are of domestic origin, 
some of the autos have optional engines which are purchased abroad, 
yielding an average foreign content of 3.5 percent. Some 15 percent of the 
finished autos is expected to be exported.  

   Zone procedures will exempt Chrysler from paying duties on foreign 
components used in exports. On its domestic sales, the company will be 
able to defer duty and to take advantage of the same duty rate that is 
available to importers of finished automobiles. The average duty rate on 
the foreign parts Chrysler uses at the plant is about 3.8 percent whereas 
the rate for automobiles is 2.8 percent. The reduction of Customs costs is 
part of Chrysler's effort to modernize and reduce costs at its U.S. 
assembly plants, making them more competitive with auto assembly facilities 
   In accordance with the Board's regulations, an examiners committee has 
been appointed to investigate the application and report to the Board. The 
committee consists of: Dennis Puccinelli (Chairman), Foreign-Trade Zones 
Staff, U.S. Department of Commerce, Washington, D.C. 20230; Edward A. 
Goggin, Assistant Regional Commissioner, U.S. Customs Service, Northeast 
Region, 100 Summer St., Boston MA 02110; and Lt. Colonel Roger L. Baldwin, 
District Engineer, U.S. Army Engineer District Philadelphia, 2nd and 
Chestnut St., Philadelphia, PA 19106.  
   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 November 26, 1983. 
   A copy of the application is available for public insection at each of 
the following locations: 
Port Director's Office, 
U.S. Customs Service, 
New Federal Bldg., Room 1218 F, 
844 King St., 
Wilmington, DE 19801 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 1872, 
14th and Pennsylvania, NW., 
Washington, D.C. 20230  
   Dated: October 18, 1983. 
John J. Da Ponte, Jr., 
   Executive Secretary.   
[FR Doc. 83-28821 Filed 10-21-83; 8:45 am]