DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
(Docket No. 52-93)
Foreign-Trade Zone 70--Detroit, MI; Application for Subzone, BASF
Chemical Manufacturing Facilities, Wyandotte, MI
Monday, October 25, 1993
An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Greater Detroit Foreign Trade Zone, Inc., grantee of FTZ 70,
requesting special-purpose subzone status for the chemical manufacturing
facilities of BASF Corporation located in the Wyandotte, Michigan, area.
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 October 12, 1993.
The BASF facilities consist of two sites in the Detroit area: Site 1 (233
acres)--"North Works" manufacturing facility, 1609 Biddle Avenue,
Wyandotte, Michigan, some nine miles south of downtown Detroit on the
Detroit River; and, Site 2 (2.5 acres)--"Refactory Handling, Inc.," raw
materials/finished goods warehousing, distribution facility, 17423 West
Jefferson Avenue, Riverview, Michigan, about one mile south of the
The facilities (845 employees) are used to produce certain chemical
products, such as bulk vitamins, thermoplastic polyurethanes, expanded
polyolefins, polyols, plastic materials, and elastocell products (duty
rates--3.1% to 12.5%). Currently, some 40 percent of material inputs are
sourced from abroad, including isophytol, trimethylhydroquinone, napthalene
diisocyanate, castor oil, styrene, alcohols, phenols, nitrogen-function
compounds, vitamins/provitamins/hormones, glycosides/vegetable alkaloids,
beta carotene, mixed alkylbenzenes and alsylnapthalenes, polyacetals,
polyethers, and polycarbonates (duty rates--free to 20%, 3.7/kg+13.6%).
Zone procedures would exempt BASF from Customs duty payments on the foreign
items used in export production. On domestic sales, the company would be
able to choose the duty rates that apply to the finished products made at
the plant for the foreign materials noted above (For example, the duty rate
on napthalene diisocyanate is 13.5%, whereas, the duty rate for the
finished product, motor vehicle jounce bumpers, is 3.1% (2.5% if
transferred in-bond to auto assembly subzones)). The application indicates
that the savings from zone procedures would help improve the facilities'
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 on December 27, 1993. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period to January 10, 1994.
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, 1140 Patrick V. McNamara
Building, 477 Michigan Avenue, Detroit, MI 48226.
Office of the Executive Secretary, [Image]Foreign[Image][Image]-Trade
[Image] [Image]Zones[Image] Board, U.S. Department of Commerce, Room 3716,
14th Street & Constitution Avenue, NW., Washington, DC 20230.
Dated: October 15, 1993.
John J. Da Ponte, Jr.,
(FR Doc. 93-26183 Filed 10-22-93; 8:45 am)