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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 33-88] 
                                  53 FR 43912 
                                October 31, 1988 
Foreign-Trade Zone 15, Kansas City, MO; Application for Subzone; Kawasaki
Small Engine Plant, Nodaway County, MO 
TEXT: An apoplication has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Greater Kansas City Foreign-Trade Zone, Inc. (KCFTZ), 
grantee of FTZ 15, requesting special-purpose subzone status for the small
engine manufacturing plant of Kawasaki Motors Manufacturing Corp., U.S.A. 
(KMM) (a subsidiary of Kawasaki Heavy Industries, Ltd., Japan), located in
Nodaway County, Missouri. The application was submitted pursuant to the 
provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-8lu),
and the regulations of the Board (15 CFR Part 400). It was formally filed 
on October 21, 1988.  
   The KMM plant (114 acres) is located on U.S. Highway 71 north of 
Maryville, in Nodaway County, Missouri, some 95 miles northwest of Kansas
City. The facility (known as the Maryville plant) will be used to produce
two types of small engines: Industrial engines for construction, farm and
garden equipment (18cc-296cc); and engines for motorcycles, jetskis, and 
all-terrain vehicles (150cc-1500cc). The industrial engines will primarily
be sold to equipment makers, and the motorcycle, jetski and all-terrain 
vehicle engines will be shipped to Kawasaki's Lincoln, Nebraska, plant 
(FTZ Subzone 59A). The Applicant indicates that the engines made at the 
Maryville plant will displace engines imported from Japan. At the outset, 
all of the components used in the assembly process will be sourced abroad,
including blocks, heads, crankshifts, connecting rods, ball bearings, 
springs, metal fasterners, guages and electrical parts. KMM estimates that
70 percent of the parts will be sourced domestically within four years.
   Zone procedures would exempt KMM from Customs duty payments on foreign 
materials used in its exports (application indicates 35% of production). On
domestic sales, the company would be able to choose the same finished 
product duty rate that applies to the completed engines (0.0-4.2%). The 
rates on materials and components range from 0.2 to 11.0 percent. The 
applicant indicates that the savings would help improve the plant'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: Joseph Lowry (Chairman), Foreign-Trade Zones Staff, 
U.S. Department of Commerce, Washington, DC 20230; Theodore Galantowicz, 
District Director, U.S. Customs Service, North Central Region, 7911 Forsythe
Boulevard, Suite 625, St. Louis, Missouri 63105; and Colonel John Atkinson,
District Engineer, U.S. Army Engineer District Kansas City, 700 Federal 
Building, 601 East 12th Street, Kansas City, Missouri 64106-2896. 
   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 December 12, 
   A copy of the application is available for public inspection at each of
the following locations: 
U.S. Department of Commerce, 
District Office, Room 635, 
601 East 12th Street, 
Kansas City, MO 64106 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 1529, 
14th & Pennsylvania Avenue NW., 
Washington, DC 20230.  
   Dated: October 24, 1988. 
John J. Da Ponte, Jr., 
   Executive Secretary.   
[FR Doc. 88-25118 Filed 10-28-88; 8:45 am]