DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 8-86]
51 FR 9235
March 18, 1986
Foreign-Trade Zone 83 -- Huntsville, AL; Application for Subzone Chrysler
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Huntsville-Madison County Airport Authority, grantee of
Foreign-Trade Zone 83, requesting special-purpose subzone status for
Chrysler Corporation's auto electronic purducts plant in Huntsville,
Alabama, within the Huntsville 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 24, 1986.
The proposed subzone would be located at Chrysler's Huntsville
Electronics Plant, 1024103 Wynn Drive, Huntsville. The 71-acre facility is
used to produce radio/cassette players, ignition control computers and
other electronic controls. Parts such as cassette heads, semiconductors,
and capacitors, representing 6 percent of production costs, are sourced
abroad. The finished electronic auto components are shipped to Chrysler
assumbly plants in the U.S. and abroad.
Zone procedures would allow Chrysler to export finished components
without paying customs duties on foreign materials. On the products used at
its domestic auto assembly plants with subzone status, the company would
be able to take advantage of the same duty rate that is available to
importers of finished autos. The duty rates on the parts imported by
Chrysler range from 4.0 to 10.0 percent. whereas the rate for finished autos
is 2.6 percent. The savings from subzone status would contribute to the
company's overall cost reduction program, helping it to become more
competitive with auto plants abroad.
In accordance with the Board's reguations, 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; David L.
Willette, Acting District Director, U.S. Customs Service, South Central
Region, 250 N. Water Street, Mobile, Alabama 36652; and Colonel William
Kirkpatrick, District Engineer, U.S. Army Engineer District Nashville, P.O.
Box 1070, Nashville, TN 37202.
Comments concerning the proposed subzone are invited in writing from
interested parties. They should be addressed to the Board's Executive
Secretary at the address below and postmarked on or before April 17, 1986.
A copy of the application and accompanying exhibits will be available
during this time for public inspection at each of the following locations:
Port Director's Office,
U.S. Customs Service,
Huntsville-Madison County Airport,
Huntsville, Alabama 35806;
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 1529,
14th and Pennsylvania, NW.,
Washington, D.C. 20230.
Dated: March 11, 1986.
John J. Da Ponte, Jr.,
[FR Doc. 86-5898 Filed 3-17-86; 8:45 am]
BILLING CODE 3510-DS-M