[Federal Register Volume 65, Number 48 (Friday, March 10, 2000)]
[Notices]
[Pages 12969-12970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5937]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 5-2000]


Foreign-Trade Zone 15--Kansas City, MO; Expansion of 
Manufacturing Authority--Subzone 15E, Kawasaki Motors Manufacturing 
Corp., U.S.A., Plant (Internal-Combustion Engines, Parts of Industrial 
Robots), Maryville, MO

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Greater Kansas City Foreign-Trade Zone, Inc., 
grantee of FTZ 15, requesting, on behalf of the Kawasaki Motors 
Manufacturing Corp., U.S.A. (KMM), operator of FTZ Subzone 15E, KMM 
plant, Maryville, Missouri, an expansion of the scope of manufacturing 
authority to include new manufacturing capacity under FTZ procedures 
within Subzone 15E. It was formally filed on March 1, 2000.
    Subzone 15E was approved by the Board in 1989 with authority 
granted for the manufacture of small internal-combustion engines and 
transmissions for motorcycles, personal water craft, all-terrain 
vehicles, subject to certain conditions (Board Order 454, 54 FR 50257, 
12-5-89). The Board authorized KMM's request for removal of the 
conditions in 1992 (Board Order 560, 57 FR 4862, 2-10-92), and an 
expansion of the scope of manufacturing authority under FTZ procedures 
(engines for lawn/garden equipment and additional small engine 
production capacity to 500,000 units/year) was approved in 1999 (Board 
Order 1014, 64 FR 5765, 2-5-99).
    KMM is now requesting that its current scope of FTZ manufacturing 
authority be extended to include small industrial diesel engines and 
parts of industrial robots. Subzone 15E at the KMM plant (600 
employees, 113 acres) would be expanded by some 525,360 square feet 
from the current 607,080 to a total of 1.13 million square feet of FTZ 
manufacturing space. Most of the finished engines and industrial robot 
components are shipped to KMM's Lincoln, Nebraska, plant to equip 
vehicles and industrial robots

[[Page 12970]]

assembled there. The application states that the additional production 
activity at the Maryville plant will supplant similar activity 
currently conducted abroad. The new manufacturing activity will involve 
casting, machining, finishing, and assembly using domestic and foreign 
materials and components.
    The expanded operations will involve a continuation of KMM's 
utilization of foreign-sourced materials and components (up to 81% of 
the finished engines' ex-plant value at the outset). Components that 
will be sourced from abroad include: belts, electrical components, fuel 
pumps, housings, fasteners, gaskets, flywheels, rocker arms, pistons, 
crankshafts, connecting rods, cylinder heads, balancer shafts, 
manifolds, crankcases, intake/exhaust valves, flanges/spacers/grommets, 
starter motors, breathers, pulleys, exhaust components, carburetors, 
turbojets/props/turbines and parts, pumps, parts of transmissions, 
gauges, bearings, hoses, o-rings, resins, cements, adhesives, 
ballotini, rubber belts, paper packaging, base metal mountings, 
netting, articles of plastic/rubber, articles of aluminum and zinc, 
fabricated steel and copper tube/wire/chain/springs, and electric 
motors/generators (duty rate range: free--12.5%). The application 
indicates that the extent of domestic sourcing of materials and 
components will increase in the future.
    FTZ procedures would exempt KMM from Customs duty payments on the 
foreign components used in export activity (about 13% of shipments). On 
its domestic sales, the company would be able to elect the duty rate 
that applies to finished engines and industrial robot parts (duty 
free--2.8%) for the foreign components noted above. The finished 
engines and industrial robot parts shipped in-bond to Subzone 59A at 
KMM's plant in Nebraska would be processed for Customs entry after 
final assembly of robots and vehicles (duty free--2.8%). The 
application indicates that the savings from FTZ procedures help improve 
KMM'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 9, 2000. Rebuttal comments in response 
to material submitted during the foregoing period may be submitted 
during the subsequent 15-day period to May 24, 2000.
    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 4008, U.S. Department of Commerce, 14th Street 
& Pennsylvania Avenue, NW, Washington, DC 20230.

    Dated: March 3, 2000.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 00-5937 Filed 3-9-00; 8:45 am]
BILLING CODE 3510-DS-P