Foreign-Trade Subzone 59A; Lincoln, NE; Request for Expanded Manufacturing Authority; Kawasaki Motors Manufacturing Corporation, U.S.A., Plant (Industrial Robots)

DEPARTMENT OF COMMERCE

[Docket 7-94]

Foreign-Trade Subzone 59A; Lincoln, NE; Request for Expanded

Manufacturing Authority; Kawasaki Motors Manufacturing Corporation,

U.S.A., Plant (Industrial Robots)

An application has been submitted to the Foreign-Trade Zones Board

(the Board) by the Kawasaki Motors Manufacturing Corporation, U.S.A.

(KMM), operator of FTZ Subzone 59A, KMM plant, Lincoln, Nebraska,

requesting authority to manufacture industrial robots under zone

procedures. The application was submitted pursuant to the provisions of

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

February 24, 1994.

Subzone 59A was approved by the FTZ Board in 1980 with activity

granted for the manufacture of motorcycles, jet skis, and four wheel

all terrain vehicles (Board Order 163, 45 FR 58637, 9-4-80). An

application for expansion of the subzone is currently pending (Doc. 56-

93, 58 FR 63335, 12-1-93) and an application for authority to

manufacture utility work trucks (Doc. 4-94, 59 FR 2592, 1-18-94).

KMM is now requesting subzone authority to manufacture certain

automated industrial robots (6 axis) for the U.S. market and export.

Foreign-sourced components and subassemblies comprise approximately 80

percent of the finished robots' material value and include: Plastic

parts, rubber belts, fasteners, metal fittings, air pumps/compressors,

data processing equipment, optical readers, valves and switches,

electric motors and transformers, transmissions/gear boxes,

controllers, diodes, transistors, semiconductors, liquid crystal

devices, lasers, and measuring instruments (duty rate range: Free--

20%). The application indicates that all steel mill products will be

sourced domestically.

Zone procedures would exempt KMM from Customs duty payments on the

foreign components used in export production. On its domestic sales,

the company would be able to choose the duty rate that applies to the

finished industrial robots (HTSUS# 8479.89.9049, duty rate 3.7%) for

the foreign components noted above. The application indicates that the

savings from zone procedures would help improve KMM's international

competitiveness.

In accordance with the Board's regulations, a member of the FTZ

Staff has been appointed 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 May 9, 1994. Rebuttal comments in response

to material submitted during the foregoing period may be submitted

during the subsequent 15-day period (to May 23, 1994).

A copy of the application and the accompanying exhibits will be

available for public inspection at each of the following locations:

U.S. Department of Commerce District Office, 11133 ``O'' Street, Omaha,

Nebraska 68137.

Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.

Department of Commerce, room 3716, 14th Street & Constitution Avenue,

NW., Washington, DC 20230.

Dated: February 24, 1994.

Dennis Puccinelli,

Acting Executive Secretary.

[FR Doc. 94-5186 Filed 3-7-94; 8:45 am]

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