DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 30-84]
49 FR 23669
June 7, 1984
Foreign-Trade Zone 89, Las Vegas, Nevada; Application for subzone for
Porsche Auto Plant in Reno, Nevada
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Nevada Development Authority, grantee of Foreign-Trade
Zone 89, Las Vegas, requesting special-purpose subzone status for the
automobile preparation facility of Porsche Cars North America, Inc. (PCNA)
located in Reno, Nevada, within the Reno 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 June 1, 1984. The
applicant is authorized to make this proposal under Nevada Revised
Statutes 273A.010-273A.050.
The proposed subzone for PCNA will be located on a site adjacent to
Reno's Cannon International Airport with access to the air cargo apron.
The 14-acre facility will be used to prepare high performance sports cars
for sale in the U.S. market, employing 50 persons. Processes would include
dewaxing, installation of parts and accessories, performing mechanical
modifications, painting, and making minor body corrections. The facility
will also serve as a parts warehouse and distribution center. PCNA is
establishing a similar facility in Charleston, SC (see FTZ Board Docket
No. 31-84). The autos will arrive from abroad as essentially finished
products, however, PCNA will consider purchasing domestically parts such
as tires, batteries, glass, air conditioners and radios/tape players to be
added prior to entry. Spare parts would be sourced primarily abroad.
Zone procedures will allow PCNA to defer duty payment on complete autos
and parts until they are shipped to dealers. Because parts inventory
turnover is slow and because the autos are high-valued items which require
substantial prep-time, the savings from duty deferral appear to be
significant. On certain foreign parts added to the autos, the company can
also take advantage of the same duty rate that is available to importers
that ship fully completed autos from abroad. These savings will encourage
PCNA to add value in the U.S. while helping it to compete with imported
sports cars modified abroad.
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, 550
Battery Street, P.O. Box 2450, San Francisco, CA 94111; and Colonel
Arthur E. Williams, District Engineer, U.S. Army Engineer District
Sacramento, 650 Capitol Mall, Sacramento, CA 95814.
Comments concerning the proposed subzone are invited in writing from
interested persons and organizations. They should be addressed to the
Board's Executive Secretary at the address below and postmarked on or
before July 10, 1984.
A copy of the application is available for public inspection at each of
the following locations:
U.S. Dept. of Commerce District Office,
1755 E. Plumb Lane, #152,
Reno, NV 89502
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: June 1, 1984.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 84-15254 Filed 6-6-84; 8:45 am]
BILLING CODE 3510-DS-M