[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Notices]
[Pages 55268-55269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27360]


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DEPARTMENT OF COMMERCE
[Docket 76-96]


Foreign-Trade Zone 176--Rockford, IL; Application for Subzone 
Status, Nissan Industrial Engine Manufacturing USA, Inc., Plant (Spark 
Ignition Industrial Engines), Marengo, IL

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Greater Rockford Airport Authority, grantee of FTZ 
176, requesting special-purpose subzone status for the spark ignition 
industrial

[[Page 55269]]

engine manufacturing plant of Nissan Industrial Engine Manufacturing 
USA, Inc. (NIEM) (a Nissan Kohki Co., Ltd./Nissan Forklift Corporation, 
North America joint venture), located in Marengo, Illinois. 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 16, 1996.
    The NIEM plant (11 acres/66,000 sq.ft.) is located at 19720 East 
Grant Highway (U.S. 20) in Marengo (McHenry County), some 66 miles west 
of Chicago, Illinois. The plant (28 employees) is used to produce spark 
ignition industrial engines (ranging from 40 to 70 hp) used in forklift 
trucks, construction equipment, generators, welders, and irrigation 
equipment (HTS# 8407.90.1010) for export and the domestic market. Most 
of the finished engines are shipped to U.S. forklift truck 
manufacturers. The production process involves assembly, testing, and 
warehousing. Components purchased from abroad (about 72% of total, by 
value) include: crankcases (blocks), cylinder heads, intake/exhaust 
manifolds, balancer shafts, connecting rods, piston sets, crankshafts, 
rocker arms, intake/exhaust valves, bearings, housings, flywheels, 
pulleys, gaskets, camshafts, timing chains, water pumps, magnetos, 
fasteners, spark plugs, gauges, electrical components, thermostats, oil 
filters, hoses and plastic molded parts (duty rate range: 0.4-9.1%). 
The application indicates that U.S.-sourced components will comprise 
some 29 percent of the finished engines' value within three years.
    Zone procedures would exempt NIEM from Customs duty payments on the 
foreign components used in export production. On its domestic sales, 
the company would be able to choose the duty rate that applies to 
finished industrial engines (duty free) for the foreign inputs noted 
above. 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 December 24, 1996. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to January 8, 1997).
    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--Branch Office, P.O. Box 1747, 515 North 
Court Street, Rockford, IL 61110.
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: October 17, 1996.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 96-27360 Filed 10-24-96; 8:45 am]
BILLING CODE 3510-DS-P