DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 31-84]
49 FR 23669
June 7, 1984
Foreign-Trade Zone 21, Dorchester County, South Carolina; Application for
Subzone for Porsche Auto Plant in Charleston, South Carolina
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the South Carolina State Ports Authority, grantee of Foreign-
Trade Zone 21, requesting special-purpose subzone status for the automobile
preparation facility of Porsche Cars North America, Inc. (PCNA) located in
Charleston, South Carolina, within the Charleston 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 section 54-3-230 of Code of Laws of
South Carolina.
The proposed subzone for PCNA will be located on airport property
adjacent to the cargo apron at Charleston International Airport in
Charleston. The 13-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 Reno, NV (see FTZ Board Docket No.
30-84). 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; Ralph C. Muser,
Acting Deputy Assistant Regional Commissioner, U.S. Customs Service,
Southeast Region, 99 SE. 5th Street, Miami, FL 33131; and Lt. Colonel Lee
Smith, District Engineer, U.S. Army Engineer District Charleston, P.O. Box
919, Charleston, SC 29402.
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:
Port Director's Office,
U.S. Customs Service,
200 E. Bay Street, P.O. Box 876,
Charleston, SC 29402
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. 84-15255 Filed 6-6-84; 8:45 am]
BILLING CODE 3510-DS-M