[Federal Register Volume 73, Number 106 (Monday, June 2, 2008)]
[Notices]
[Page 31432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12255]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

Docket 34-2008


Foreign-Trade Zone 222 - Montgomery, AL, Application for 
Expansion of Manufacturing Authority, Subzone 222A - Hyundai Motor 
Manufacturing Alabama, LLC (Motor Vehicles and Engines)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Montgomery Area Chamber of Commerce, grantee of FTZ 
222, on behalf of Hyundai Motor Manufacturing Alabama, LLC (HMMA), 
operator of Subzone 222A at the HMMA motor vehicle manufacturing plant 
in Montgomery, Alabama, requesting an expansion of the scope of FTZ 
manufacturing authority to include new manufacturing capacity under FTZ 
procedures. The application was submitted pursuant to the provisions of 
the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and 
Section 400.28(a)(2) of the Board's regulations (15 CFR Part 400). It 
was formally filed on May 21, 2008.
    Subzone 222A was approved in 2003 for the manufacture of up to 
250,000 light-duty passenger vehicles annually at the HMMA plant (3,300 
employees/1,750 acres/2.1 million sq.ft.) in Montgomery (Montgomery 
County), Alabama (Board Order 1278, 68 FR 35622, 6-16-2003).
    The applicant currently requests that the scope of FTZ 
manufacturing authority be extended to include an additional 350,000 
square feet of production area to accommodate new engine production 
capacity (an additional 120,000 engines annually), which will be added 
within the existing boundaries of Subzone 222A. The additional engine 
output will be shipped to the Kia Motors Manufacturing Georgia, Inc. 
(KMMG), assembly plant in West Point, Georgia.
    Foreign-origin components that are used in engine production 
(representing approximately 31% of finished engine value) include: 
oils, self-adhesive plastic/polyurethane sheets/foil/film/labels, 
pumps, rubber tubes/hoses, parts of engines, filters, paint, gaskets, 
fasteners, bearings, belts, locks, half shafts, parts of transmissions, 
electrical components, wire and cable, and measuring instruments and 
related parts (duty rate range: free - 8.5%).
    Expanded FTZ procedures would continue to exempt HMMA from customs 
duty payments on the foreign components used in production for export. 
On its shipments transferred in-bond to the KMMG facility (located 
within FTZ 26), no duties would be paid on the foreign components 
within the engines until KMMG's finished vehicles are subsequently 
entered for consumption, at which time the finished automobile duty 
rate (2.5%) could be applied to the foreign inputs noted above. The 
application indicates that the savings from FTZ procedures helps to 
improve the HMMA plant's international competitiveness.
    In accordance with the Board's regulations, Pierre Duy of the FTZ 
Staff is designated examiner to investigate the application and report 
to the Board.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the following address: Office of the Executive Secretary, 
Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW., 
Washington, DC 20230-0002. The closing period for receipt of comments 
is August 1, 2008. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to August 18, 2008.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
the address listed above. For further information, contact Pierre Duy, 
examiner, at: [email protected], or (202) 482-1378.

    Dated: May 21, 2008.
Pierre V. Duy,
Acting Executive Secretary.
[FR Doc. E8-12255 Filed 5-30-08; 8:45 am]
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