DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 13-87]
52 FR 33459
September 3, 1987
Application for Subzone Chrysler Auto Components Plants, Detroit Area;
Foreign-Trade Zone 70, Detroit, MI
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Greater Detroit Foreign-Trade Zone, Inc., grantee of FTZ
70, requesting special-purpose subzone status for five Detroit area plants
of the Chrysler Corporation, which produce a variety of components for its
North American auto assembly operations. 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 August 25, 1987.
The five Chrysler plants, which employ a total of some 4,800 persons,
are: Detroit Trim Plant (28 acres), 12501 Dequindre, Detroit (interior and
exterior trim); Trenton Chemical Division Plant (60 acres), 5473 W.
Jefferson Avenue, Trenton (brake pads, paint, sealants and chemicals);
McGraw Glass Plant (40 acres), 9400 McGraw Avenue, Detroit (automative
glass); Mound Road Engine plant (33 acres), 20300 Mound Road, Detroit
(engines, bearing cups, and yokes); and, Detroit Axle plant (47 acres), 6700
Lynch Road, Detroit (axle assemblies).
Certain parts and material for these plants are sourced abroad, including
vinyl roll goods, carbon fiber, sheet glass, bearings, gears, and
miscellaneous auto parts. Foreign materials account for less than 5 percent
of total production costs at each of the plants.
Zone procedures would exempt Chrysler from Customs duties on the foreign
components that are reexported either as auto parts or in assembled autos.
On products shipped to U.S. auto assembly plants with subzone status, the
company would be able to take advantage of the same duty rate available to
importers of complete automobiles. The duty rates on components used at the
five plants range from 3.2 to 11.0 percent, whereas the rate on autos is 2.5
percent. The savings will help improve the company's international
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, DC 20230; William Morandini,
District Director, U.S. Customs Service, North Central Region, 477 Michigan
Avenue, Detroit, Michigan 48226; and Colonel Robert F. Harris, District
Engineer, U.S. Army Engineer District Detroit, P.O. Box 1027, Detroit,
Comments concerning the proposed subzone are invited in writing from
interested parties. They shall be addressed to the Board's Executive
Secretary at the address below and postmarked on or before September 30,1987.
A copy of the application is available for public inspection at each of
the following locations:
U.S. Department of Commerce District Office,
1140 McNamara Building,
477 Michigan Avenue,
Detroit, Michigan 48226
Office of the Executive Secretary
Foreign-Trade Zones Board
U.S. Department of Commerce, Room 1529
Washington, DC 20230
Dated: August 28, 1987.
John J. Da Ponte, Jr.,
[FR Doc. 87-20316 Filed 9-2-87; 8:45 am]
BILLING CODE 3510-DS-M