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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                               [Docket 82-91]

      Foreign-Trade Zone 125--South Bend, IN; Application for Subzone;
    Fairmont/Gulfstream Modular Housing and Recreational Vehicle Plants,
                              County, Indiana

                         Thursday, January 2, 1992

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the St. Joseph County Airport Authority, grantee of FTZ 125, 
requesting special-purpose subzone status for the modular housing and 
recreational vehicle (RV) plants of Fairmont Homes, Inc. (Fairmont) and its 
subsidiary, Gulf Stream, Inc. (Gulfstream) located in Elkhart 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, 1991.

The proposed subzone involves a main manufacturing complex and two related
facilities located in Nappanee, Elkhart County, some 20 miles southeast of
South Bend, Indiana: Site 1 (234 acres)--Fairmont/Gulfsteam modular housing
and recreational vehicle main manufacturing and warehouse complex, Oakland
Avenue, Nappanee; Site 2 (8 acres)--components manufacturing facility, U.S.
Highway 6 West, Nappanee; Site 3 (6 acres)--Gulfstream recreational vehicle
manufacturing facility, 1701 Century Drive, Goshen, some 15 miles northeast
of Nappanee.

The facilities employ 1,800 persons and are used to manufacture modular
housing, mobile homes, travel trailers, van conversions (domestic chassis),
and RV's, including Class A and Class B motor homes and Class C micro-mini
RV's. Some of the components (currently about 25%) used in the modular
housing products are sourced abroad including tires, wood products, ceramic
fixtures, iron and steel shapes, screws, bolts, nuts, household laundry
machines, dishwashing machines, household kitchen appliances, consumer
electronic equipment, electrical switching apparatus, wire, cable, seats,
mattresses, lamps and other household furnishings. Some of the components
(currently about 20%) incorporated into RV's are sourced abroad including
those mentioned above and additionally, rubber and plastic hoses, engines
parts, pumps, pulley tackles and hoists, transmissions shafts and cranks,
cab chassis, chassis, speedometers, and instrument panel clocks. The Class
micro-mini RVs are built on a foreign-sourced light pick-up truck
cab/chassis (<6,000-lb. GVW). The other vehicles are built on domestic

Zone procedures would exempt Fairmont from Customs duty payments on
materials used in production for export. On domestic sales the company
would be able to choose the duty rates that apply to finished products
(2.5--3.2 percent). The duty rates on the foreign materials range from zero
to 17 percent. On its domestic sales of micro-mini RVs, the company would
be able to choose the lower finished vehicle duty rate (2.5 percent) rather
than the pick-up truck cab/chassis rate (25 percent). The applicant
indicates that zone savings would help Fairmont/Gulfstream improve its
international competitiveness and increase export sales. The Board has
approved (with restriction) two other micro-mini RV production operations:
The Forest City, Iowa facility of Winnebago Industries, Inc. (FTZ Subzone
107A, 49 FR 35971, 9/13/84) and the Perris, California facility of National
RV (FTZ Subzone 50C, 55 FR 35159, 8/28/90).

In accordance with the Board's regulations, an examiners committee has been
approved 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; Richard Roster, 
District Director, U.S. Customs Service, North Central Region, suite 217, 
610 South Canal Street, Chicago, Illinois 60607; and Colonel Richard Kanda,
District Engineer, U.S. Army Engineer District Detroit, Mc Namara Federal 
Building, 477 Michigan Ave., Detroit, Michigan 48226.

Comments concerning the application 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 February 14, 1992.

A copy of the application is available for public inspection at each of the
following locations:
Office of the District Director, 
U.S. Department of Commerce,
Mid-Continental Plaza Bldg., rm. 1406, 
55 E. Monroe St., 
Chicago, Illinois 60603.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, 
14th & Pennsylvania Avenue, NW., room 3716, 
Washington, DC 20230.

Dated: December 23, 1991.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 91-31310 Filed 12-31-91; 8:45 am]