DEPARTMENT OF COMMERCE
Foreign-Trade Zone 39--Dallas/Fort Worth, TX; Application for Subzone,
International (U.S.A.), Inc., Auto Air Conditioner Manufacturing Plant,
Monday, January 4, 1993
An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the DFW International Airport Board, grantee of FTZ 39, requesting
special-purpose subzone status for the automotive air conditioner
manufacturing plant of Sanden International (U.S.A.), Inc. (Sanden)
(subsidiary of Sanden Corporation, Japan), located in Wylie, Texas. 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 December 21, 1992.
The Sanden plant (437,000 sq.-ft. bldg. on 95 acres) is located at 601
South Sanden Boulevard in Wylie (Collin County), some 24 miles northeast of
downtown Dallas. The Facility (345 employees) is used to produce air
conditioning compressors, evaporator coils, and related components for use
in motor vehicles and heavy equipment. The manufacturing process involves
machining and assembly of compressors, clutches, and evaporator coils.
Certain subcomponents are sourced from abroad, including clutch assemblies,
heat insulators, electrical switches, coil covers, fan/motor assemblies,
gaskets, and labels (duty rate range: 3.4%-6.2%). Such subcomponents
represent some 54 percent of the finished compressors' value and 20 percent
of the evaporator coils' value.
Zone procedures would exempt Sanden from Customs duty payments on the
foreign parts used in export production. On its domestic sales, the firm
would be able to choose the duty rate that applies to finished compressors
(3.4%) and evaporator coils (2.2%) for the foreign material inputs noted
above. If the products are shipped to auto assembly plants with subzone
status, the compressors would be subject to the finished auto duty rate
(2.5%). Foreign status merchandise and finished components made for export
would also be exempt from certain state and local ad valorem taxes. The
application indicates that the savings will help improve the plant's
In accordance with the Board's regulations (as revised, 56 FR 50790-50808,
10- 8-91), a member of the FTZ Staff has been appointed examiner to
investigate the application and report to the Board.
Public comment on the application is invited from interested parties.
Submissions (original and three copies) shall be addressed to the Board's
Executive Secretary at the address below. The closing period for their
receipt is March 5, 1993. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period March 22, 1993.
A copy of the application and the accompanying exhibits will be available
for public inspection at each of the following locations:
U.S. Department of Commerce District Office,
World Trade Center, suite 170,
2050 N. Stemmons Freeway,
Dallas, Texas 75242-0787.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 3716,
14th Street & Constitution Avenue, NW.,
Washington, DC 20230.
Dated: December 22, 1992.
John J. Da Ponte, Jr.,
(FR Doc. 92-31888 Filed 12-31-92; 8:45 am)