[Federal Register Volume 66, Number 39 (Tuesday, February 27, 2001)]
[Notices]
[Page 12460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4773]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 10-2001]


Foreign-Trade Zone 39--Dallas/Fort Worth, TX; Application for 
Expansion of Manufacturing Authority--Subzone 39C Sanden International 
(USA), Inc., Facilities Wylie, Texas (Motor Vehicle Air-Conditioner 
Components)

    A application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Dallas/Fort Worth International Airport Board, 
grantee of FTZ 39, requesting an expansion of the scope of 
manufacturing authority to include new manufacturing capacity under FTZ 
procedures and requesting authority to expand Subzone 39C at the Sanden 
International (USA), Inc. (Sanden), facility in Wylie, Texas. It was 
formally filed on February 14, 2001.
    Subzone 39C was approved by the Board in 1993 with authority 
granted for the manufacture of air-conditioner compressors, evaporator 
coils, and related components (1.3 million units/year) for use in motor 
vehicles, trucks and heavy equipment at Sanden's manufacturing plant 
(95 acres/437,000 sq. ft.) in Wylie, Texas (Board Order 666, 59 FR 60, 
1-3-94).
    The applicant is now requesting authority to expand the subzone to 
include a new 13-acre site (``Miller Road'' facility) with an 
additional 178,000 square feet of manufacturing/warehouse space located 
at 10710 Sanden Drive in Dallas, Texas. Under Sanden's current 
expansion plan, the production and warehousing area under FTZ 
procedures would be increased to a total of 615,000 square feet. 
Activity at the facilities (841 employees) involves machining and 
assembly of compressors, clutches, and evaporator coils. Components 
sourced from abroad include: clutch assemblies, crankshafts, pistons, 
castings, gears, heat insulators, rotor shafts/assemblies, centering 
balls, rings, electrical switches, coil covers, housings, fan/motor 
assemblies, gaskets, armature plates, rubber seals and dampers, 
bearings, plugs, pulleys, valves and retainers, fasteners, springs, 
sleeves, clamps, bushings, dust covers, caps, coil rings and windings, 
felt rings, and labels (duty rate range: free-9.9%), representing some 
40 percent of total purchases.
    FTZ procedures exempt Sanden from Customs duty payments on the 
foreign components used in export production (some 450,000 units/year, 
about 19% of total U.S. production). On its domestic sales, the company 
is able to choose the duty rate that applies to finished air-
conditioner compressors and related components (duty free) for the 
foreign components noted above. Foreign status and domestic status 
merchandise destined for export would be exempt from certain local ad 
valorem inventory taxes. The request indicates that the savings from 
FTZ procedures will continue to help improve the facilities' 
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 April 30, 2001. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period to May 14, 2001.
    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 & Constitution Avenue, 
NW, Washington, DC 20230.

    Dated: February 14, 2001.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 01-4773 Filed 2-26-01; 8:45 am]
BILLING CODE 3510-DS-P