DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 20-84]
49 FR 18880
May 3, 1984
Foreign-Trade Zone 18 -- San Jose, California; Application for Subzone for
GM-Toyota Auto Plant in Fremont and Public Hearing
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the City of San Jose, California, grantee of Foreign-Trade
Zone 18, requesting special-purpose subzone status for the automobile
manufacturing facility of New United Motor Manufacturing, Inc. (NUMMI), a
joint venture between General Motors Corporation (GM) and Toyota Motor
Corporation, located in Fremont, California, within the San Francisco-
Oakland Customs port of entry. 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 30, 1984. The applicant is authorized to make this proposal
under Sections 6300-6304, Chapter 4, of the California Government Code.
The proposed subzone would be located at the former GM assembly plant
at 45500 Fremont Boulevard at Highway 17 in Fremont. NUMMI will use 211
acres at the facility to produce some 200,000 new subcompact automobiles
annually, involving 3000 new jobs. Roughly half the value of the vehicle
will involve foreign-sourced parts and material, including engines,
transaxles, brake system components, steering components, and a portion of
its steel requirements.
Zone procedures will exempt NUMMI from paying duties on foreign material
used for its exports. On its domestic sales, the company will be able to
defer duty payments and take advantage of the same duty rate available to
importers of finished autos. The estimated average duty rate on most of the
foreign components NUMMI expects to use will be 4 to 5 percent, whereas the
rate for finished autos is 2.7 percent. The reduction of Customs costs and
material transit time as provided by zone procedures will play an important
role helping to make NUMMI competitive with auto assembly facilities
offshore.
In accordance with the Board's regulations, an examiners committee has
been appointed to investigate the application and report to the Board. The
committee consists of: Dennis Puccinelli (Chairman), Foreign-Trade Zones
Staff, U.S. Department of Commerce, Washington, D.C. 20230; Paul R.
Andrews, District Director, U.S. Customs Service, Pacific Region, 555
Battery St., P.O. Box 2450, San Francisco, CA 94111; and Colonel Edward M.
Lee, Jr., District Engineer, U.S. Army Engineer District San Francisco, 211
Main Street, San Francisco, CA 94105.
As part of its investigation, the examiners committee will hold a public
hearing on June 7, 1984, beginning at 9:00 a.m., in the City Council
Chambers of the San Jose City Hall, 501 North First Street, San Jose.
Interested parties are invited to present their views at the hearing.
Persons wishing to testify should notify the Board's Executive Secretary in
writing at the address below or by phone (202/377-2862) by May 31. Instead
of an oral presentation, written statements may be submitted in accordance
with the Board's regulations to the examiners committee, care of the
Executive Secretary, at any time from the date of this notice through
July 9, 1984.
A copy of the application and accompanying exhibits will be available
during this time for public inspection at each of the following locations:
U.S. Dept. of Commerce District Office,
Federal Building,
450 Golden Gate Ave.,
P.O. Box 36013,
San Francisco, CA 94102.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 1872,
14th and Pennsylvania, NW.,
Washington, D.C. 20230.
Dated: April 30, 1984.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 84-11966 Filed 5-2-84; 8:45 am]
BILLING CODE 3510-DS-M