[Federal Register Volume 65, Number 149 (Wednesday, August 2, 2000)]
[Notices]
[Page 47377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19554]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 38-2000]


Foreign-Trade Zone 57--Asheville, North Carolina; Application for 
Foreign-Trade Subzone Status; Volvo Construction Equipment North 
America, Inc. (Construction Equipment) Asheville, NC, Area

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the North Carolina Department of Commerce, grantee of 
FTZ 57, requesting special-purpose subzone status for the manufacturing 
facilities (construction equipment) of Volvo Construction Equipment 
North America, Inc. (Volvo), located at sites in the Asheville, North 
Carolina area. The application was submitted pursuant to 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 July 17, 2000.
    The Volvo facilities are located at two sites in the Asheville, 
North Carolina, area (64 acres, 531,700 sq. ft. total): Factory Site (6 
buildings/399,700 sq. ft.)--office and main manufacturing facilities, 
located at 2169 Hendersonville Rd. (U.S. Rt. 25), Skyland; and Feeder 
Distribution Warehouse Site (1 building/132,000 sq. ft.)--located at 
1856 Hendersonville Rd., Asheville.
    The facilities (400 employees) are used for the fabrication, 
assembly, and testing of Volvo's articulated haulers and loaders. Some 
of the components used in the manufacturing process are purchased from 
abroad (ranging from 36.1% to 82.8% of finished product value), 
including: Cabs; sheet metal (non-steel); hydraulic cylinders; axles; 
transmissions; engines; wheels; rims; tires; buckets; caulking 
materials; anti-corrosive preparations; locks; spanners and wrenches; 
electrical instruments and apparatuses; and lamps and lighting (duty 
rates on imported items range from duty-free to 9.0%). The company 
indicates that any foreign-produced steel products will be admitted to 
the proposed subzone in domestic (duty-paid) status.
    Zone procedures would exempt Volvo from Customs duty payments on 
foreign components used in export production. FTZ procedures will help 
Volvo to implement a more efficient and cost-effective system for 
handling Customs requirements. On its domestic sales, Volvo would be 
able to choose the lower duty rate that applies to the finished 
products (duty-free) for foreign components, including those noted 
above. The company also would benefit from duty savings on scrap and 
waste resulting from the production process. FTZ status may also make a 
site eligible for benefits provided under state/local programs. The 
application indicates that the savings from zone procedures would help 
improve the facilities' international competitiveness, and could enable 
the company to shift additional production from overseas to the 
Asheville-area facilities.
    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 October 2, 2000. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period to October 16, 2000.
    A copy of the application and the accompanying exhibits will be 
available for public inspection at each of the following locations: 
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, NW., 
Washington, DC 20230.
    U.S. Department of Commerce Export Assistance Center, 521 East 
Morehead St., Suite 435, Charlotte, NC 28202.

    Dated: July 21, 2000.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 00-19554 Filed 8-1-00; 8:45 am]
BILLING CODE 3510-DS-P