DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
Foreign-Trade Subzone 29E; Toyota Motor Manufacturing, U.S.A., Inc.,
Georgetown, KY; Request for Expansion of Subzone Manufacturing Authority
Thursday, June 25, 1992
A request for approval of expanded subzone manufacturing authority at the
automobile manufacturing plant of Toyota Motor Manufacturing, U.S.A., Inc.
(TMM), Georgetown, Kentucky (FTZ Subzone 29E), has been submitted to the
Foreign-Trade Zones Board (the Board) pursuant to § 400.32 of the Board's
regulations by the Louisville & Jefferson County Riverport Authority,
grantee of FTZ 29, Louisville, Kentucky. It was formally filed on
June 16, 1992.
The Board authorized subzone status for the TMM plant in December 1987
(Board Order 369, 53 FR 45, 1-4-88). Manufacturing authority presently
exists for the assembly of some 200,000 passenger automobiles annually and
the assembly of certain components, such as engines and axles for those
TMM is constructing additional manufacturing facilities at the Georgetown
plant and requests that its subzone authority be extended to include the
increased capacity. The company plans to add capacity for the manufacture
of an additional 250,000 autos per year (proposed total capacity:
Approximately 450,000 autos annually). The company is also planning to add
capacity for manufacturing approximately 200,000 six-cylinder engines
(current engines produced are four-cylinder type) annually to equip autos
assembled at the plant and for export as engines. In addition, axle
production capacity would increase from 240,000 annually to about 450,000,
with some additional units produced as replacement parts. The applicant
states that the additional production at the Georgetown plant will displace
imports of finished autos and components. Some finished autos assembled at
the plant will be exported.
The expanded operations will involve a continuation of the current scope
and level of foreign-sourced materials and components. Parts and materials
that would be sourced from abroad would continue to include engines,
drivetrain components, steel, steering and brake systems, air conditioning
equipment, accessories, plastics, electrical equipment, and subcomponents
for assembly of some components such as engines and axles. The application
indicates that the extent of domestic sourcing (per unit) of materials and
components will continue at least at the current level (approximately 50
percent of total material value involves domestic status (19 CFR 146.43)
merchandise), and that the company will continue its efforts to increase
the domestic sourcing of materials and components. According to the
applicant, total U.S. value added is currently approximately 75 percent and
domestically-produced steel now accounts for more than 80 percent of the
plant's steel requirements.
The authority requested in the application would allow TMM to extend the
use of zone procedures to its expanded production. This would exempt TMM
from Customs duty payments on foreign parts that are used in the plant's
expanded auto and engine production for export. On domestic sales, it would
be able to choose the finished auto duty rate (2.5%) for foreign materials
and components used at the plant in the production of automobiles. The duty
rates on the foreign materials and components range from zero to 9.5 percent.
In accordance with the Board's regulations (as revised, 56 FR 50790- 50808,
10-8-91), a member of the FTZ Staff has been designated examiner to
investigate the application and report to the Board.
Public comment on the proposed subzone expansion is invited from interested
parties. Submissions (original and 3 copies) shall be addressed to the
Board's Executive Secretary at the address below. The closing period for
their receipt is August 24, 1992. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period (to September 8, 1992).
A copy of the application and accompanying exhibits will be available for
public inspection at the following location:
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 3716,
14th Street and Constitution Avenue, NW.,
Washington, DC 20230.
Dated: June 17, 1992.
John J. Da Ponte, Jr.,
(FR Doc. 92-15001 Filed 6-24-92; 8:45 am)