Foreign-Trade Zone 72Indianapolis, IN; Application for Subzone Status, Fujitsu Ten Corporation of America Plant (Automotive Audio Products and Electronic Components), Rushville, IN

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 64-96]

Foreign-Trade Zone 72--Indianapolis, IN; Application for Subzone

Status, Fujitsu Ten Corporation of America Plant (Automotive Audio

Products and Electronic Components), Rushville, IN

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

(the Board) by the Indianapolis Airport Authority, grantee of FTZ 72,

requesting special-purpose subzone status for the automotive audio

products and electronic components manufacturing plant of Fujitsu Ten

Corporation of America (FTCA), located in Rushville, Indiana. 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 August 19, 1996.

The FTCA plant (95,000 sq.ft. On 32 acres) is located at 616 Conrad

Harcourt Way in Rushville (Rush County), Indiana, some 40 miles east of

Indianapolis. The plant (354 employees) is used to produce (1)

automotive audio products, including electronic tuning

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AM/FM radios, AM/FM radio/cassette units, cassette deck units, power

amplifiers, and front end AM/FM receiver modules; and (2) automotive

electronic components, including relay integration modules (i.e.,

warning indicators, light dimmers) and security systems with remote

keyless entry, for the U.S. market and export. As part of this

application, FTZ authority is also being requested for other automotive

electronic components which may be manufactured in the future,

including air bag controllers, speed control systems, fuel injection

systems, seat controls, anti-lock brake units, automatic windshield

wipers, heated seat modules, indicator sensors, and vehicle navigation

systems. The production process involves assembly, testing, and

warehousing. Components purchased from abroad (about 76% of total unit

material value) include: self-adhesive plastic plates/foil/film,

labels, copper and steel fasteners, steel springs, other articles of

copper, flywheels and pulleys, electric motors, electronic parts

(transformers, inductors, capacitors, resistors, diodes, transistors,

LED's, insulators), liquid crystal displays, integrated circuits, PC

boards, electrical switches, other electrical and audio parts (duty

rate range: free--12.5%, 40 cents/unit, 7 cents/kg ). The application

indicates that 26 percent of all components (by value) will be

purchased from U.S. suppliers within three years after approval of

subzone status.

FTZ procedures would exempt FTCA from Customs duty payments on the

foreign components used in the export production (11% of total

shipments). On its domestic sales, the company would be able to choose

the duty rates that apply to finished automotive audio products and

automotive electronic components (duty free--8.5%) for the foreign

inputs noted above. The motor vehicle duty rate (2.5%) could apply to

the finished audio and electronic products that are shipped to U.S.

motor vehicle assembly plants with subzone status for inclusion into

finished motor vehicles under FTZ procedures. Under the FTZ Act,

certain merchandise in FTZ status is exempt from ad valorem inventory-

type taxes. The application indicates that subzone status 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 October 28, 1996. Rebuttal comments in

response to material submitted during the foregoing period may be

submitted during the subsequent 15-day period (to November 12, 1996).

A copy of the application and the accompanying exhibits will be

available for public inspection at each of the following locations:

U.S. Export Assistance Center, Penwood One, Suite 106, 11405 N.

Pennsylvania Street, Carmel, IN 46032

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

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

NW., Washington, DC 20230-0002

Dated: August 19, 1996.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 96-22124 Filed 8-28-96; 8:45 am]

BILLING CODE 3510-DS-P