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last update: September 2002 
Foreign-Trade Zones Board
[Docket 64-96]

Foreign-Trade Zone 72--Indianapolis, IN; Application for Subzone
Status, Fujitsu Ten Corporation of America Plant (Automotive Audio
Products and Electronic Components), Rushville, IN

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Indianapolis Airport Authority, grantee of FTZ 72,
requesting special-purpose subzone status for the automotive audio
products and electronic components manufacturing plant of Fujitsu Ten
Corporation of America (FTCA), located in Rushville, 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 August 19, 1996.

The FTCA plant (95,000 sq.ft. On 32 acres) is located at 616 Conrad Harcourt Way in Rushville (Rush County), Indiana, some 40 miles east of Indianapolis. The plant (354 employees) is used to produce (1) automotive audio products, including electronic tuning AM/FM radios, AM/FM radio/cassette units, cassette deck units, power amplifiers, and front end AM/FM receiver modules; and (2) automotive electronic components, including relay integration modules (i.e., warning indicators, light dimmers) and security systems with remote keyless entry, for the U.S. market and export. As part of this application, FTZ authority is also being requested for other automotive electronic components which may be manufactured in the future, including air bag controllers, speed control systems, fuel injection systems, seat controls, anti-lock brake units, automatic windshield wipers, heated seat modules, indicator sensors, and vehicle navigation systems. The production process involves assembly, testing, and warehousing. Components purchased from abroad (about 76% of total unit material value) include: self-adhesive plastic plates/foil/film, labels, copper and steel fasteners, steel springs, other articles of copper, flywheels and pulleys, electric motors, electronic parts (transformers, inductors, capacitors, resistors, diodes, transistors, LED's, insulators), liquid crystal displays, integrated circuits, PC boards, electrical switches, other electrical and audio parts (duty rate range: free--12.5%, 40 cents/unit, 7 cents/kg ). The application indicates that 26 percent of all components (by value) will be purchased from U.S. suppliers within three years after approval of subzone status.

FTZ procedures would exempt FTCA from Customs duty payments on the foreign components used in the export production (11% of total shipments). On its domestic sales, the company would be able to choose the duty rates that apply to finished automotive audio products and automotive electronic components (duty free--8.5%) for the foreign inputs noted above. The motor vehicle duty rate (2.5%) could apply to the finished audio and electronic products that are shipped to U.S. motor vehicle assembly plants with subzone status for inclusion into finished motor vehicles under FTZ procedures. Under the FTZ Act, certain merchandise in FTZ status is exempt from ad valorem inventory- type 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 October 28, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period (to November 12, 1996).

A copy of the application and the accompanying exhibits will be available for public inspection at each of the following locations:

U.S. Export Assistance Center, Penwood One, Suite 106, 11405 N. Pennsylvania Street, Carmel, IN 46032 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: August 19, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-22124 Filed 8-28-96; 8:45 am]