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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
 
                               [Docket No. 31-87] 
 
                                  52 FR 44620 
 
                               November 20, 1987 
 
 
Foreign-Trade Zone 72 -- Indianapolis, IN; Application for Subzone; Subaru-
Isuzu Auto/Truck Plant, Tippecanoe County, IN 
 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Indianapolis Airport Authority, grantee of FTZ 72, 
requesting special-purpose subzone status for the automobile and light truck
manufacturing plant of Subaru-Isuzu Automotive, Inc. (SIA), located in 
Tippecanoe County, Indiana. 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 November 6, 1987.  
 
   The SIA plant (350 acres), currently under construction, is located on 
State Road 38 at Interstate 65, some 2 miles southeast of Lafayette and 40
miles northwest of Indianapolis. The facility will employ 1600 persons and 
will be used to produce automobiles and light trucks. At the outset the 
company will source approximately half of the value of the vehicles abroad,
including engines, transmissions, brake system parts, steering system parts,
sheet steel, hubs, shafts, differentials, suspension systems, turbo chargers
and weather stripping. 
 
   Zone procedures would exempt SIA form Customs duty payments on the 
components used on products it exports. On its domestic sales of autos, the
company would be able to defer duty payments and to pay duties at the rate 
available to importers of complete autos. The duty rate for autos is 2.5 
percent, whereas the rates on the foreign components to be used by SIA range
from 3.0 to 4.9 percent. On the trucks (25 percent duty rate) SIA plans to 
use zone procedures to defer duty payments. The applicant indicates that 
zone savings will help improve the company's international competitiveness.
 
   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; Larry Shirk, 
Assistant District Director, U.S. Customs Service, North Central Region, 
610 South Canal St., Chicago, IL 60607; and Colonel Robert L. Oliver, 
District Engineer, U.S. Army Engineer District Louisville, P.O. Box 59, 
Louisville, KY 40201.  
 
   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 January 8, 1988.
 
   A copy of the application is available for public inspection at each of
the following locations: 

U.S. Dept. of Commerce District Office, 
357 U.S. Courthouse & Federal Office Bldg., 
46 E. Ohio St., 
Indianapolis, IN 46204 
 
 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 1529, 
14th and Pennsylvania, NW., 
Washington, DC 20230  
 
   Dated: November 12, 1987. 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.   
[FR doc. 87-26842 Filed 11-19-87; 8:45 am] 
 
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