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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 30-84] 
                                  49 FR 23669 
                                  June 7, 1984 
Foreign-Trade Zone 89, Las Vegas, Nevada; Application for subzone for 
Porsche Auto Plant in Reno, Nevada 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Nevada Development Authority, grantee of Foreign-Trade 
Zone 89, Las Vegas, requesting special-purpose subzone status for the 
automobile preparation facility of Porsche Cars North America, Inc. (PCNA) 
located in Reno, Nevada, within the Reno 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 June 1, 1984. The 
applicant is authorized to make this proposal under Nevada Revised 
Statutes 273A.010-273A.050. 
   The proposed subzone for PCNA will be located on a site adjacent to 
Reno's Cannon International Airport with access to the air cargo apron. 
The 14-acre facility will be used to prepare high performance sports cars 
for sale in the U.S. market, employing 50 persons. Processes would include 
dewaxing, installation of parts and accessories, performing mechanical 
modifications, painting, and making minor body corrections. The facility 
will also serve as a parts warehouse and distribution center. PCNA is 
establishing a similar facility in Charleston, SC (see FTZ Board Docket 
No. 31-84). The autos will arrive from abroad as essentially finished 
products, however, PCNA will consider purchasing domestically parts such 
as tires, batteries, glass, air conditioners and radios/tape players to be 
added prior to entry. Spare parts would be sourced primarily abroad. 
   Zone procedures will allow PCNA to defer duty payment on complete autos 
and parts until they are shipped to dealers. Because parts inventory 
turnover is slow and because the autos are high-valued items which require 
substantial prep-time, the savings from duty deferral appear to be 
significant. On certain foreign parts added to the autos, the company can 
also take advantage of the same duty rate that is available to importers 
that ship fully completed autos from abroad. These savings will encourage 
PCNA to add value in the U.S. while helping it to compete with imported 
sports cars modified abroad.  
   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; Paul R. 
Andrews, District Director, U.S. Customs Service, Pacific Region, 550 
Battery Street, P.O. Box 2450, San Francisco, CA 94111; and Colonel 
Arthur E. Williams, District Engineer, U.S. Army Engineer District 
Sacramento, 650 Capitol Mall, Sacramento, CA 95814. 
   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 July 10, 1984.  

   A copy of the application is available for public inspection at each of 
the following locations: 
U.S. Dept. of Commerce District Office, 
1755 E. Plumb Lane, #152, 
Reno, NV 89502  
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: June 1, 1984. 
John J. Da Ponte, Jr., 
   Executive Secretary.   
[FR Doc. 84-15254 Filed 6-6-84; 8:45 am]