Foreign-Trade Subzone 59ALincoln, NE, Request for Removal of Board Order Condition; Kawasaki Motors Manufacturing Corp., U.S.A. (Industrial Robots)

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 18-99]

Foreign-Trade Subzone 59A--Lincoln, NE, Request for Removal of

Board Order Condition; Kawasaki Motors Manufacturing Corp., U.S.A.

(Industrial Robots)

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

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

operator of FTZ 59A, requesting removal of the time restriction on

manufacturing authority for industrial robots pursuant to Board Order

745 (60 FR 30517, 6-9-95), which authorized the manufacture of

industrial robots under FTZ procedures for an initial period ending

July 1, 1999, subject to extension. It was formally filed on May 3,

1999.

Subzone 59A was approved by the Board in 1980 with authority

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

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

subzone was subsequently expanded in 1994 (Board Order 712, 59 FR

66891, 12-28-94). The Board later approved the manufacture of off-road,

utility work trucks and industrial robots with 6 or more axes of motion

under FTZ procedures for the U.S. market and export (Board Orders 744

and 745, 60 FR 30517, 6-9-95) . KMM is now requesting that the

manufacturing authority for industrial robots be extended on a

permanent basis. Foreign-sourced components comprise approximately 60

percent of the finished robots' FOB value and include: plastic parts,

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

processing equipment (controllers), optical readers, valves and

switches, electric motors and transformers, transmissions/gear boxes,

diodes, transistors, semiconductors, liquid crystal devices, and

measuring instruments (duty rate range: free-9.0%).

FTZ procedures exempt KMM from Customs duty payments on the foreign

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

company can choose the duty rate that applies to finished industrial

robots (HTSUS 8479.50.0000, 2.5%) for the foreign components noted

above. The request indicates that the savings from FTZ procedures will

continue to help improve the facility'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 July 12, 1999. Rebuttal comments in

response to material submitted during the foregoing period may be

submitted during the subsequent 15-day period (to July 26, 1999).

A copy of the application and the accompanying exhibits will be

available for public inspection at the following location: 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: May 3, 1999.

Dennis Puccinelli,

Acting Executive Secretary.

[FR Doc. 99-12017 Filed 5-11-99; 8:45 am]

BILLING CODE 3510-DS-P