[Federal Register Volume 62, Number 43 (Wednesday, March 5, 1997)] [Notices] [Pages 10022-10023] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-5404] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [Docket 10-97] Foreign-Trade Zone 38, Spartanburg, SC; Request for Manufacturing Authority, Zeuna Starker USA, Inc., (Automotive Exhaust Systems) An application has been submitted to the Foreign-Trade Zones Board (the Board) by the South Carolina State Ports Authority, grantee of FTZ 38, pursuant to Sec. 400.28(a)(2) of the Board's regulations (15 CFR part 400), requesting authority on behalf of Zeuna Starker USA, Inc. (ZSUSA) (a subsidiary of Zeuna Starker GmbH & Co., KG, Germany), to manufacture automotive exhaust systems under FTZ procedures within FTZ 38, with certain restrictions applicable to foreign stainless steel materials. It was formally filed on February 18, 1997. The ZSUSA plant is located at 2651 New Cut Road within the proposed Site 4 of FTZ 38 in the Wingo Corporate Park, Spartanburg, South Carolina (Docket 65-96, 61 FR 45400, 8-29-96). The ZSUSA plant (50 employees) is used to manufacture exhaust systems for automotive applications that are sold in the U.S. and exported. Components sourced from abroad (about 80% of total) include: Catalytic converters, muffler boxes, flanges, fasteners, helical pressure and threaded inserts, brackets, stainless steel alloy pipe, and monoliths (duty rate range: 0.1-5.3%). The [[Page 10023]] application indicates that the majority of the plant's current output is shipped to BMW Manufacturing Corporation's auto plant in Spartanburg, South Carolina. Some two percent of the ZSUSA plant's shipments are exported. FTZ procedures would exempt ZSUSA from Customs duty payments on the foreign components used in export production. On its domestic sales, ZSUSA would be able to choose the duty rate during Customs entry procedures that applies to finished auto exhaust systems (2.7%) for the foreign inputs noted above, except that foreign status stainless steel pipe would be admitted to FTZ 38 in privileged foreign status (19 CFR 146.41), making such materials subject to the full duty normally applicable. The motor vehicle duty rate (2.5%) could apply to the foreign components in the finished exhaust systems, which are not in privileged foreign status, and that are shipped to the BMW plant (FTZ Subzone 38A) or other U.S. motor vehicle assembly plants with subzone status for manufacture into finished motor vehicles under FTZ procedures. FTZ procedures would also exempt the foreign components that become scrap during the production process (about 0.08% for stainless steel pipe; 4% for the other foreign items) from Customs duties. The request indicates that the savings from FTZ procedures would help improve the ZSUSA 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 5, 1997. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period (to May 19, 1997). A copy of the application and the accompanying exhibits will be available for public inspection at the following location: Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue, NW, Washington, DC 20230. Dated: February 24, 1997. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 97-5404 Filed 3-4-97; 8:45 am] BILLING CODE 3510-DS-P