DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
Foreign-Trade Subzone 146C, Fedders North America, Inc., Effingham, IL;
for Expansion of Manufacturing Authority; Room Air Conditioners
Thursday, August 6, 1992
The Foreign-Trade Zones Board (the Board) has been notified pursuant to
§ 400.28(a)(3) of the Board's regulations by the Bi-State Authority, grantee
of FTZ 146, Lawrence County, Illinois, with additional information as to the
sourcing of foreign components for activity under FTZ procedures at the
Fedders North America, Inc., room air conditioner manufacturing plant in
Effingham, Illinois (FTZ Subzone 146C).
The Board authorized subzone status for the Fedders plant in March, 1992
(Board Order 561, 57 FR 9103, 3-16-92). Manufacturing authority involves
the production of room air conditioners for the U.S. market and for export
using certain materials and components sourced from abroad, which account
for some 20 percent of finished product material value.
The original application listed certain components being sourced from
aboard. The Board has now been notified that certain components were
inadvertently omitted. The FTZ Staff has reviewed the list and concluded
that public comment should be invited on the following items which are
subject to inverted tariffs based on the 2.2 percent duty rate for finished
air conditioners: compressors (HTSUSA# 8414.30, duty rate: 3.4%), overloads
and start assists (8414.90.20402, 3.4%), power cords (8544.60.200009,
5.3%), reversing valves (8481.20.00007, 3.7%), insulation (8548.00.00002,
3.9%), heating coils (8516.29.00908, 3.7%), grooved copper tubing
(7407.10.10000, 6.3%), and aluminum (7607.11.00006, 5.3%). The
manufacturing activity otherwise remains unchanged.
Zone procedures would exempt Fedders from Customs duty payments on the
foreign components used in production for export. On domestic sales, the
firm would be able to choose the duty rate for finished air conditioners
(2.2%) to apply to foreign-origin components (average duty rate 4.3%).
Public comment is invited from interested parties. Submission (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 26, 1992. A
copy of the request will be available for public inspection at the
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 3716,
14th Street and Pennsylvania Avenue, NW.,
Washington, DC 20230.
Dated: July 30, 1992.
John J. Da Ponte, Jr.,
(FR Doc. 92-18695 Filed 8-5-92; 8:45 am)