DEPARTMENT OF COMMERCE
Foreign-Trade Zone 46--Cincinnati, OH; Application for Subzone
Status, Pioneer Industrial Components, Inc., Facilities, (Automotive
Audio Products), Springboro, OH
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Greater Cincinnati Foreign Trade Zone, Inc., grantee
of FTZ 46, requesting special-purpose subzone status for the automotive
audio products manufacturing facilities of Pioneer Industrial
Components, Inc. (PIC), located in Springboro, Ohio. 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 March 8, 1996.
The proposed subzone would consist of PIC's two facilities in
southwest Ohio: Site 1--manufacturing plant (120,000 sq.ft./40 acres)--
100 Pioneer Boulevard, Springboro (Warren County), Ohio, some 15 miles
south of Dayton; and, Site 2--warehouse (12,800 sq.ft./6 acres)--315-
317 Pioneer Boulevard, Springboro, about 4 blocks south of Site 1. The
facilities (305 employees) are used to produce automotive compact disc
(CD) players, cassette/radios, CD/radios, CD/cassette/radios, AM/FM
radios, and audio amplifiers for export and the domestic market. The
production process involves assembly, testing, quality control, and
packaging. At the outset, some 60 percent of the components would be
purchased from abroad, including: Inductors/coils, transformers,
capacitors, resistors, transistors, insulators, PC boards, light
emitting diodes, fuses, diodes, liquid crystal displays, integrated
circuits, switches, knobs/buttons, relays, connectors, fasteners, and
other parts of radio/CD players (duty rate range: free--9.8%).
Zone procedures would exempt PIC from Customs duty payments on the
foreign components used in the export production (about 30% of total).
On its domestic sales, the company would be able to choose the duty
rates that apply to the finished automotive audio products (3.1-4.9%)
for the foreign inputs noted above. The motor vehicle duty rate (2.5%)
would apply to finished audio products that are shipped to U.S. motor
vehicle assembly plants with subzone status for inclusion into finished
motor vehicles under zone procedures. Zone procedures would also exempt
certain merchandise from certain ad valorem inventory taxes. The
application indicates that subzone status would help improve the
plant's international competitiveness.
In accordance with the Board's regulations, a member of the FTZ
Staff has been designated 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 May 14, 1996. Rebuttal comments in response
to material submitted during the foregoing period may be submitted
during the subsequent 15-day period May 29, 1996.
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, Room 9504, 550 Main
Street, Cincinnati, OH 45202
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue,
NW., Washington, DC 20230-0002.
Dated: March 11, 1996.
John J. Da Ponte, Jr.,
[FR Doc. 96-6284 Filed 3-14-96; 8:45 am]