DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 11-85]
50 FR 21638
May 28, 1985
Proposed Foreign-Trade Zone and Subzone; Flint, MI, Application and Public
Hearing
TEXT: An Application has been submitted to the Foreign-Trade Zones Board
(the Board) by the City of Flint, Michigan, requesting authority to
establish a general-purpose foreign-trade zone, and a subzone for the
General Motors Corporation's automobile manufacturing plant in Flint,
Michigan, within the Saginaw/Bay City/Flint Customs port of entry. It 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), and was formally filed on May 15, 1985. The applicants are authorized
to make this proposal under Act 154, Public Act of the State of Michigan,
1963.
The proposed general-purpose zone will involve 2 sites adjacent to Bishop
International Airport. Site 1 covers 20 acres at G-4075 West Bristol Road
and includes an existing warehouse. This facility is owned and operated by
National Cartage Company, Inc., which has been selected to handle
warehouse activities. Site 2 is at a 65-acre city industrial park on Torrey
Road. Individual parcels would be activated on a case-by-case basis for
companies requiring zone procedures.
The application contains evidence of the need for zone services in the
Flint area. Several firms have expressed an interest in using zone
procedures for the storage and processing of articles, such as tool and
die products, power tool accessories, communication equipment, diesel
engines, ceramic products, robotics systems, and a variety of auto parts.
Cirtek Corporation, located in Site 2, is proposing to use zone procedures
to produce automobile electronic components, and to add electronic devices
to imported auto parts such as steering columns. The company imports
capacitors, transistors and auto parts on which work is performed. Most
of the completed components and modified parts are shipped to U.S. auto
assembly plants. Any other manufacturing requests would be reviewed by the
Board on a case-by-case basis.
The subzone would involve GM's "Buick City" auto manufacturing plant,
902 E. Hamilton Avenue, Flint. The 425-acre facility is currently being
renovated to produce new, full-sized, front-wheel-drive Buicks and
Oldsmobiles, employing up to 5000 persons. An adjacent 23-acre parcel
would be included for a related parts handling facility. About 1 to 2
percent of the parts and material to be used at the plant will be dutiable,
including radios, speakers, tape players, circuit boards, wheels and
springs. Exports are expected to be in the 5 percent range.
Zone procedures would exempt GM from duty payments on the foreign parts
it uses on its exports. On domestic sales, the company will be able to
take advantage of the same duty rate available to importers of finished
autos. The average duty rate on the components GM uses is 4.2 percent,
whereas the rate for complete autos is 2.6 percent. The savings from
subzone status would contribute to the company's overall cost reduction
program, helping its U.S. plants compete with auto plants 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: John J. Da Ponte, Jr. (Chairman), Director, Foreign-
Trade Zones Staff, U.S. Department of Commerce, Washington, D.C. 20230;
William Morandini, District Director, U.S. Customs Service, North Central
Region, 477 Michigan Avenue, Detroit, MI 48226; and Colonel Raymond T.
Beurket, District Engineer, U.S. Army Engineer District Detroit, P.O. Box
1027, Detroit, MI 48231.
As part of its investigation, the examiners committee will hold a public
hearing on June 26, 1985, beginning at 9:00 A.M., in the City Council
Chambers, City Hall, 1101 South Saginaw, Flint.
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 June 20.
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 26, 1985.
A copy of the application is available for public inspection at each of
the following locations:
Dept. of Community Development, City of Flint,
1101 South Saginaw,
Flint, MI 48502
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 1529,
14th and Pennsylvania, NW.,
Washington, D.C. 20230.
Dated: May 20, 1985.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 85-12713 Filed 5-24-85; 8:45 am]
BILLING CODE 3510-DS-M