DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 12-86]
51 FR 12356
April 10, 1986
Proposed Foreign-Trade Zone, Lawrence County, IL.; Including Auto Parts
Subzone for Hella North America, Inc., Application and Public Hearing
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Bi-State Authority, Lawrence-Vincennes Municipal Airport,
a public corporation of the States of Illinois and Indiana, requesting
authority to establish a general-purpose foreign-trade zone in Lawrence
County, Illinois, adjacent to the Owensboro-Evansville Customs port of
entry, and a special-purpose subzone for the auto components manufacturing
operations of North American Lighting, Inc., and Hella Electronics, Inc.,
both subsidiaries of Hella North America, Inc., in Clay County, 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 April 1, 1986. The
applicant is authorized to make this proposal under House Bill No. 472 of
the 82nd General Assembly, State of Illinois, approved July 24, 1981.
The proposed general-purpose zone would cover 43 acres within the 3000-
acre Lawrenceville-Vincennes Airport/Industrial Park Complex on Route 4 in
Lawrence County, Illinois. Owned and operated by the Bi-State Authority,
the facility has an existing warehouse building and open space for firms
needing to construct their own facilities.
The application contains evidence of the need for zone services in the
Lawrenceville-Vincennes area. Several firms have indicated an interest in
using the general-purpose zone for warehousing products such as auto
components, electronic safety devices, communication equipment, electric
motors, and glass. No specific manufacturing approvals are being sought at
this time. Such requests would be made to the Board on a case-by-case basis.
The proposed subzone for the auto parts manufacturing operations is
located in Clay County on a 13.2-acre site at No. 20 Flora Industrial Park,
adjacent to Highways 45 and 50 in Clay County. The North American Lighting
subsidiary produces automobile head and tail lamps, warning lights and
illumination systems. Production involves plastic parts molding and
assembly. Some 40 percent of the materials used are sourced abroad, such
as glass lenses and metal stampings. Hella Electronics assembles auto
electro-mechanical and electronic control units. Some 60 percent of the
parts are sourced abroad, such as electronic components and relays. Both
firms ship their products to domestic auto assembly plants.
Zone procedures will allow the subzone companies to avoid duties on the
foreign parts used in their exports. On their shipments to domestic auto
assembly plants with subzone status, they will be able to take advantage
of the same duty rate available to importers of complete automobiles and
parts shipped to auto assembly subzones, which is 2.6 percent. The duty
rates on the parts used by the companies range from 1 to 6 percent. The
savings from zone procedures will help the companies compete with overseas
producers of finished auto parts. These efforts are related to the cost-
containment strategies of the domestic auto industry.
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;
Theodore A. Galantowicz, District Director, U.S. Customs Service, North
Central Region, 120 South Central Ave., St. Louis, MO 63105; and Colonel
Dwayne A. Lee, District Engineer, U.S. Army Engineer District Louisville,
P.O. Box 59, Louisville, KY 40201.
As part of its investigation, the examiners committee will hold a public
hearing on May 14, 1986, beginning at 9:00 a.m., in the Civic Center
Chambers of the Lawrenceville City Hall, 700 E. State St., Lawrenceville,
Interested parties are invited to present their views at the hearing.
Persons wishing to testify should notify the Board's Executive Secretary
in writing at the address below or by phone (202/377-2862) by May 7.
Instead of an oral presentation, written statements may be submitted in
accordance with the Board's regulations to the examiners committee, care
of the Executive Secretary, at any time from the date of this notice
through June 13, 1986.
A copy of the application and accompanying exhibits wil be available
during this time for public inspection at each of the following locations:
Lawrenceville Industrial Development Office,
Lawrenceville, Illinois 62439.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 1529,
14th and Pennsylvania, NW.,
Washington, DC 20230.
Dated: April 7, 1986.
John J. Da Ponte, Jr.,
[FR Doc. 86-8028 Filed 4-9-86; 8:45 am]
BILLING CODE 3510-DS-M