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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 4-84] 
                                   49 FR 6395 
                               February 21, 1984 
Proposed Foreign-Trade Zone -- Jefferson County, New York; Application for 
Subzone at New York Air Brake Plant in Watertown 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by Jefferson County, New York, requesting special-purpose 
subzone status for the manufacturing plant of New York Air Brake Company 
in Watertown, New York, adjacent to the Alexandria Bay 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 
February 10, 1984. The applicant is authorized to make this proposal under 
Chapter 157, Laws of New York 1983. 
   Jefferson County already has an application pending with the Board for 
a general-purpose foreign-trade zone which was filed on January 4, 1984 
(Docket No. 2-84, 49 FR 1260, 1/10/84). A public hearing was held on the 
proposal in Watertown on February 9. Board action is expected later this 

   New York Air Brake is a unit of General Signal Corporation, a producer 
of a variety of rail system and industrial machinery components with 
annual sales of over $1 billion. New York Air Brake produces rail car 
braking systems; aircraft hydraulic and engine starting systems; and 
mobile equipment transmissions. The plant is shared by a affiliate, the 
Dynapower Company, which produces some of the components. The companies' 
headquarters and manufacturing facilities are located in Watertown, New 
   The proposed subzone will cover 120 acres of the companies' 273-acre 
facility on Starbuck Avenue in Watertown. In addition to manufacturing the 
pneumatic and hydralic equipment described above, the plant is also used 
to service and repair the equipment that has been sold abroad, and to 
inventory spare parts. Parts purchased from foreign sources for production 
include iron castings, discs, brakes, and brake beams. A variety of spare 
parts for railroad car brakes are also purchased from abroad. The foreign 
components represent about 4 percent of the companies' sales. Exports, 
which accounted for about 17 percent of sales in 1983, are expected to 
approach 30 percent by 1986. 
   Zone procedures will exempt New York Air Brake from duty payments on the
foreign parts used in its exports and on equipment returned to the plant 
from abroad for service and repair. On domestic sales, secondary savings 
would come from exemption from duties on scrap and from duty deferral. 
Because many of the finished products have the same duty rates as the 
components, benefits from inverted tariffs will be relatively small. These 
savings, especially on export sales, will help the company in bidding 
against its foreign competitors and achieving its planned growth in 
international sales. This will help maintain the 1,400 jobs currently at 
the facility and encourage the company to add up to 100 new positions. 
   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: John J. Da Ponte, Jr. (Chairman), Director, 
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 Street, Boston, MA 02110; and 
Colonel Robert R. Hardiman, District Engineer, U.S. Army Engineer District 
Buffalo, 1776 Niagara Street, Buffalo, NY 14207. 
   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 March 20, 1984. 
   A copy of the application is available for public inspection at each of 
the following locations: 
Port Director's Office, 
U.S. Customs Service, 
Wellesley Island, 
Alexandria Bay, NY 13604. 
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: February 14, 1984. 
John J. Da Ponte, Jr., 
   Executive Secretary. 
[FR Doc. 84-4562 Filed 2-17-84; 8:45 am]