DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 22-88]
53 FR 16303
May 6, 1988
Foreign-Trade Zone 133 -- Quad-City, Iowa; Application for FTZ Subzones;
Maytag Corporation Plants in Newton, Iowa, Etc.
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Quad-City Foreign-Trade Zone, Inc. (QCFTZ), grantee of
FTZ 133, requesting special-purpose subzone status for three plants of the
Maytag Corporation, which produce major home appliances. One of the plants
is located in Iowa, while the other two are in Illinois. QCFTZ is authorized
under the laws of Iowa and Illinois to apply for zone projects in both
states. 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 25, 1988.
The Three Maytag plants are: Admiral Division of Maytag (50 acres),
Monmouth Boulevard and Linwood Road, Galesburg, Illinois (refrigerators and
dehumidifiers); Norge, a division of Admiral (34 acres), Lyerla Drive,
Herrin, Illinois (clothes washing machines and dryers); Maytag (plant #2,
Newton, 37 acres), N. 19th Avenue East and E. 8th Street North, Newton, Iowa
(clothes washing machines and dryers, dishwashers and food waste disposers).
The plants employ a total of some 6,400 persons.
The plants source certain parts from abroad, including compressors, ball
bearings, capacitors, controllers, and thermostats, which account for up to
20 percent of total material costs.
Zone procedures would exempt Maytag from Customs duties on the foreign
components that are reexported in finished products. On products shipped
into the United States, the company would be able to take advantage of the
same duty rate available to importers of finished refrigerators, clothes
washers and dryers and dishwashers. (The company does not plan to use zone
procedures for the production of dehumidifiers and food waste disposers.)
The duty rates on components used at the three plants range from 3.4 to 11.0
percent, whereas the rates on the finished products range from 2.8 to 3.6
percent. The application indicates that the savings will help improve the
company's international competitiveness.
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, DC. 20230; Larry Shirk,
Assistant District Director, U.S. Customs Service, North Central Region, 610
South Canal Street, Chicago, Illinois 60607; Theodore Galantowicz, District
Director, U.S. Customs Service, North Central Region, 7911 Forsyth Boulevard,
Suite 625, Clayton, Missouri 63105; Colonel Neil A. Smart, District Engineer,
U.S. Army Engineer District Rock Island, P.O. Box 2004, Clark Tower Building,
Rock Island, Illinois 61204-2004; and Colonel Daniel M. Wilson, District
Engineer, U.S. Army Engineer District St. Louis, 210 Tucker Boulevard N., St.
Louis, Missouri 63101-1986.
Comments concerning the proposed subzone are invited in writing from
interested parties. They shall be addressed to the Board's Executive
Secretary at the address below and postmarked on or before June 20, 1988.
A copy of the application is available for public inspection at each of
the following locations:
Port Director's Office,
U.S. Customs Service,
525 East 10th Avenue,
P.O. Box 767,
Milan, Illinois 61264
Office of the District Director,
U.S. Customs Service,
7911 Forsyth Boulevard, Suite 625,
Clayton, Missouri 63105
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 1529,
14th and Pennsylvania Avenue, NW.,
Washington, DC 20230
Dated: May 2, 1988.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 88-10118 Filed 5-5-88; 8:45 am]
BILLING CODE 3510-DS-M