[Federal Register: May 12, 1999 (Volume 64, Number 91)]
[Notices]               
[Page 25477]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12my99-41]

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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