Import Administration
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last update: September 2002 

[Docket 11-97]

Foreign-Trade Zone 26--Atlanta, GA, Area, Expansion of 
Manufacturing Authority-Subzone 26D, Yamaha Motor Manufacturing 
Corporation of America Plant (All-Terrain Vehicles), Newnan, GA

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Georgia Foreign-Trade Zone, Inc., grantee of FTZ 26, 
requesting on behalf of the Yamaha Motor Manufacturing Corporation of 
America (YMMC), operator of FTZ Subzone 26D, YMMC plant, Newnan, 
Georgia, an expansion of the scope of authority to include the 
manufacture of all-terrain vehicles under FTZ procedures within Subzone 
26D. It was formally filed on March 6, 1997.
    Subzone 26D was approved by the Board in 1989 with activity granted 
for the manufacture of personal water craft and golf cars (Board Order 
433, 54 FR 24370, 6-7-89). The manufacturing authority for golf cars is 
subject to a restriction that requires privileged foreign status (19 
CFR 146.41) to be elected on all foreign components.
    YMMC is now requesting authority to expand the scope of FTZ 
authority to include the manufacture of four wheel, all-terrain 
vehicles (ATVs) under FTZ procedures for the U.S. market and export. 
The plant's manufacturing space will be increased from 400,000 to 
540,000 square feet within the 238-acre plant site. The new all-terrain 
vehicle activity will involve welding, plastic molding, painting, and 
assembly using domestic and foreign components. Foreign-sourced 
components and subassemblies will comprise approximately 49 percent of 
the finished ATVs material value, and include: engines, head/tail 
lights, wiring harnesses, electrical components, spark plugs, flanges/
spacers/grommets, ignition coils, starter motors, breathers, pulleys, 
exhaust components, carburetors, axles, pinion gears, brake components, 
fasteners, shock absorbers, springs, bearings, hoses, gaskets/seals, o-
rings, steering gears (duty rate range: free-8.9%). The application 
indicates that 54 percent of the finished ATVs' material value will be 
U.S. sourced within four years of the launch of production.
    FTZ procedures would exempt YMMC from Customs duty payments on the 
foreign components used in export activity (about 2% of shipments). On 
its domestic sales, the company would be able to elect the duty rate 
that applies to finished ATVs (2.5%) for the foreign components noted 
above. The application indicates that the savings from FTZ procedures 
would help improve the plant's international competitiveness.
    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 19, 1997. Rebuttal comments in response 
to material submitted during the foregoing period may be submitted 
during the subsequent 15-day period (to June 2, 1997).
    A copy of the application will be available for public inspection 
at the following location: Office of the Executive Secretary, Foreign-

---- page 12793 ----

Zones Board, Room 3716, U.S. Department of Commerce, 14th Street and 
Pennsylvania Avenue, NW., Washington, DC 20230.

    Dated: March 10, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-6683 Filed 3-17-97; 8:45 am]