[Federal Register Volume 63, Number 216 (Monday, November 9, 1998)]
[Notices]
[Page 60294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29991]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 48-98]


Foreign-Trade Subzone 167B--Polaris Industries, Inc.; Expansion 
of Manufacturing Authority (Internal-Combustion Engines) Osceola, 
Wisconsin

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by Polaris Industries, Inc. (Polaris), operator of FTZ 
Subzone 167B, at the Polaris plant, Osceola, Wisconsin, requesting an 
expansion of the scope of manufacturing authority to include a new end 
product (motorcycle engines) and additional internal-combustion engine 
manufacturing capacity under FTZ procedures within Subzone 167B. It was 
formally filed on November 3, 1998.
    Subzone 167B was approved by the Board in 1997 with activity 
granted for the manufacture of small internal-combustion engines for 
snowmobiles, personal water craft, all-terrain vehicles (Board Order 
940, 62 FR 66601, 12-19-97).
    Polaris has installed new manufac-turing capacity at the Osceola 
plant (84 employees) used to produce a new model motorcycle engine (V-
twin, 1,507 cc) and now requests that its FTZ manufacturing authority 
be extended to include the increased motorcycle engine capacity. The 
company plans to produce up to 20,000 motorcycle engines annually, 
which would be shipped to Polaris' Spirit Lake, Iowa, plant to equip 
motorcycles assembled there. The new engine manufacturing activity will 
involve casting, machining, finishing, and assembly using domestic and 
foreign materials and components.
    The motorcycle engine production will utilize foreign-sourced 
pistons and cylinders (2.6% duty rate) (representing 5% of the finished 
engines' ex-plant value) and all other components from domestic 
sources.
    FTZ procedures would exempt Polaris from Customs duty payments on 
the foreign components used in export activity (less than 5% of 
shipments). On its domestic sales, the company would be able to elect 
the duty rate that applies to finished engines (duty free) for the 
foreign components noted above. The application indicates that the 
savings from FTZ procedures help improve Polaris' international 
competitiveness.
    The application has requested review under Sec. 400.32(b)(1) of the 
FTZ Board regulations based on the previous Board approvals.
    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, 1998. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to January 8, 1999.)
    A copy of the application will be available for public inspection 
at the following location: Office of the Executive Secretary, Foreign-
Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th Street 
& Pennsylvania Avenue, NW, Washington, DC 20230.

    Dated: November 3, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-29991 Filed 11-6-98; 8:45 am]
BILLING CODE 3510-DS-P