DEPARTMENT OF COMMERCE
[Docket No. 47-91]
Foreign-Trade Zone 40--Cleveland,
OH; Application for Subzone Ford Minivan
Plant, Avon Lake, OH
Monday, August 26, 1991
An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Cleveland Cuyahoga County Port Authority, grantee of FTZ 40,
requesting authority for special-purpose subzone status for the passenger
and cargo vehicle manufacturing plant of Ford Motor Company, located in Avon
Lake, Ohio. 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 14, 1991.
The Ford plant (420 acres) is located at 650 Miller Road, Avon Lake, Lorain
County, Ohio. The facility will be used to produce a new model minivan in
both passenger and cargo versions. Some of the components will be sourced
abroad, such as engines, transmissions, radio/stereos, switches, relays,
controls, power steering pumps, instrument panels, valves, hoses, and
wheelcovers. Other drive train components, other electric/electronic
components and sheet metal components may also be sourced abroad. Some 7
percent of the finished vehicles will be exported.
Zone procedures would exempt Ford from Customs duty payments on foreign
components used in vehicles that are exported. On its domestic sales of
passenger vehicles, the company would be able to choose the finished
product duty rate (2.5%). The duty rate on the components range from 3.1 to
8.0 percent. On domestic sales of cargo vehicles, which have a higher duty
rate (25.0%), the company would able to defer duty payments on foreign
components. The application indicates that zone savings would 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; John
Nelson, District Director, U.S. Customs Service, North Central Region, 55
Erieview Plaza, Cleveland, OH 44114; and Colonel John W. Morris, District
Engineer, U.S. Army Engineer District Buffalo, 1776 Niagara St., Buffalo,
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 October 15,
A copy of the application is available for public inspection at each of the
U.S. Department of Commerce District Office,
666 Euclid Avenue, room 600,
Cleveland, OH 44114.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 3716,
14th and Pennsylvania, NW.,
Washington, DC 20230.
Dated: August 20, 1991.
Acting Executive Secretary.
[FR Doc. 91-20428 Filed 8-23-91; 8:45 am]