Foreign-Trade Zone 98Birmingham, AL; Application for Subzone Status, ZF Industries, Inc. (Automotive Axle Assemblies), Tuscaloosa, Alabama

COMMISSION ON CIVIL RIGHTS

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 31-96]

Foreign-Trade Zone 98--Birmingham, AL; Application for Subzone

Status, ZF Industries, Inc. (Automotive Axle Assemblies), Tuscaloosa,

Alabama

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

(the Board) by the City of Birmingham, Alabama, grantee of FTZ 98,

requesting special-purpose subzone status for the automotive axle

assembly manufacturing plant of ZF Industries, Inc. (ZF) (subsidiary of

ZF Friedrichshafen AG, Germany), located in Tuscaloosa, Alabama. 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 April 16, 1996.

The new ZF plant (34 acres, 83,000 sq.ft.), currently under

construction, is located at 1200 Commerce Drive within the Tuscaloosa

County Airport Industrial Park, about 4 miles west of the City of

Tuscaloosa. The facility (200 employees) will be used to produce front

and rear axle assemblies for passenger vehicles manufactured at the

Mercedes-Benz motor vehicle assembly plant in Tuscaloosa County, as

well as for export. The application indicates that, at the outset,

foreign-sourced parts and materials will comprise some 25 percent of

the finished axle assemblies' material value, including: pinion sets,

steering gears, tie rods, parking brake cables, and fasteners (duty

rate range: 2.9-12.5%). Foreign (non-North American) parts and

materials purchases are projected to decline to about 14 percent of the

total in the medium term.

Zone procedures would exempt ZF from Customs duty payments on the

foreign items used in production for export. On domestic shipments

transferred in-bond to the Mercedes-Benz plant (Subzone 98A, Board

Order 803, 61 FR 8237, 3-4-96), no duties would be paid on foreign-

origin components of the axle assemblies until Mercedes enters the

finished motor vehicles for domestic consumption, at which time,

Mercedes could choose to apply the finished auto duty rate (2.5%).

Mercedes would pay no duties on its exports. For axle assemblies

withdrawn for Customs entry, the company would be able to choose the

axle duty rate (2.9%) for the foreign-origin fasteners noted above. The

application indicates that the savings from zone procedures would help

improve the plant's 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 June 24, 1996. Rebuttal comments in

response to material submitted during the foregoing period may be

submitted during the subsequent 15-day period (to July 9, 1996).

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, Medical Forum Building,

7th Floor, 950 22nd Street North, Birmingham, AL 35203.

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

Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue,

NW., Washington, DC 20230.

Dated: April 17, 1996.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 96-10110 Filed 4-25-96; 8:45 am]

BILLING CODE 3510-DS-P