Foreign-Trade Zone 39Dallas/Fort Worth, TX, Request for Manufacturing Authority, Selective Technology, Inc. (Automotive Air- Conditioner Components)

DEPARTMENT OF COMMERCE

Docket A(32b1)-4-96

Foreign-Trade Zone 39--Dallas/Fort Worth, TX, Request for

Manufacturing Authority, Selective Technology, Inc. (Automotive Air-

Conditioner Components)

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

(the Board) by the Dallas/Fort Worth International Airport Board,

grantee of FTZ 39, pursuant to Sec. 400.32(b)(1) of the Board's

regulations (15 CFR Part 400), requesting authority on behalf of

Selective Technologies, Inc. (Seltec) (a joint-venture of Tama

Manufacturing and Zexel, of Japan), to manufacture automotive air-

conditioner compressors under zone procedures within FTZ 39. It was

formally filed on October 18, 1996.

Seltec operates an automotive air-conditioner compressor assembly

facility (50 employees) within FTZ 39, and this application requests

authority to allow Seltec to conduct the activity under FTZ procedures.

Seltec's compressors are sold in the automotive parts aftermarket and

to specialty original equipment motor vehicle manufacturers in the U.S.

and abroad. The activity involves the assembly of finished air-

conditioner compressors using foreign-sourced compressor units

(comprising about 72% of the finished products' value) and foreign and

domestically-sourced electromagnetic clutches. The application

indicates that 32 percent of the finished air-conditioner compressors'

material value will be U.S. sourced within two years.

Zone procedures would exempt Seltec from Customs duty payments on

the foreign components used in export activity (some 50% of shipments).

On its domestic sales, Seltec would be able to elect the duty rate that

applies to finished automotive air-conditioner compressors (2.0%) for

the foreign electromagnetic clutches as they are processed for Customs

entry, rather than the higher rate on electromagnetic clutches (3.6%).

The motor vehicle duty rate (2.5%) could apply to the foreign

electromagnetic clutches that are shipped as part of air-conditioner

compressors to motor vehicle assembly plants with subzone status for

inclusion into finished motor vehicles under FTZ procedures. The

application indicates that the savings from FTZ procedures would help

improve the plant's international competitiveness.

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 November 29, 1996. Rebuttal comments in

response to material submitted during the foregoing period may be

submitted during the subsequent 15-day period (to December 16, 1996).

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 3716, U.S. Department of Commerce, 14th Street

and Pennsylvania Avenue, NW., Washington, DC 20230.

Dated: October 22, 1996.

John J. Da Ponte, Jr.

Executive Secretary

[FR Doc. 96-27856 Filed 10-29-96; 8:45 am]

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