DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 20-90]
55 FR 23119
June 6, 1990
Proposed Foreign-Trade Zone in Culpeper County, VA, Including Subzones
for ITT Auto Parts Plant and Rochester Steel Wire Plant; Application and
Public Hearing
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) 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), by the Culpeper County Chamber of Commerce, Inc., (a Virginia non-
profit corporation), requesting authority to establish a general-purpose
foreign-trade zone and two subzones in Culpeper County, Virginia, adjacent
to the Front Royal Customs port of entry. It was formally filed on May 25,
1990. The applicant is authorized to make this proposal under chapter 14,
@ 62.1-160 of the Code of Virginia.
The proposed general-purpose zone will involve two sites in the Culpeper
area, 75 miles southwest of Washington, DC, and some 35 miles southeast of
the new Customs port of entry at Front Royal. The primary site (2,067
acres) is adjacent to the Culpeper County Airport on U.S. Route 29, some 5
miles northeast of Culpeper. It includes the Culpeper County Industrial
Airpark (107 acres) and an additional 2,500 acres (owned by five private
parties), located adjacent to the Airpark, that would be available for
future zone growth. The second site involves the Montanus Trade Center
(78 acres) owned by the Alphin Corporation, located on Route 29 at Route 666.
The application contains evidence of the need for general-purpose zone
services in the Culpeper area. Several Airpark tenants have expressed an
interest in using zone procedures for warehousing/distribution of products
such as structural materials, industrial vehicles, film processing
equipment and tools. No specific manufacturing approvals are being sought
for the general-purpose zone sites at this time. Such requests would be
made to the Board on a case-by-case basis.
The proposal also requests subzone status for the auto components
manufacturing plant of ITT Teves America Division of ITT Corporation,
located at 111 West Lovers Lane in Culpeper. The plant (69 acres) supplies
auto brake components for the world automotive industry, including
calipers, boosters, rotors, parking brakes and pump housings. Some 25
percent of the subcomponents are sourced abroad, including such items as
housings, castings, valves, springs, clips, screws, bushings, seals,
pistons and brake shoe linings. Some 30 pecent of the finished products
are exported.
Zone procedures would exempt ITT Teves from Customs duty payments on the
foreign materials used in its exports. On its domestic shipments, the
company would be able to choose the lower finished product duty rate
(3.1%). The duty rate on the subcomponents range from 3.5 to 3.9 percent.
If the items are shipped to auto assembly plants with subzone status the
auto duty rate (2.5%) would apply.
Subzone status is also requested for the wire rope and cable
manufacturing plant (39 acres) of the Rochester Corporation (subsidiary of
British Tire and Rubber, London), located on Route 727 at Route 697. Its
product lines including steel wire rope, steel electrical cable, and fiber
optic cable. Some 35 percent of the materials are sourced abroad including
such items as steel rod, steel wire and wire strand. Some 16 percent of the
finished products are exported.
Zone procedures would exempt Rochester from Customs duty payments on the
foreign materials used in its exports. On its domestic shipments, the
company would be able to choose the lower finished product duty rates
(5.3-5.8%). The duty rates on the foreign materials range from 4 to 7
percent.
The application indicates that subzone status for ITT Teves and
Rochester would improve their 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; Howard Cooperman,
Deputy Assistant Regional Commissioner, U.S. Customs Service, Southeast
Region, 909 SE. First Avenue, Miami, Florida 33131-2595; and Colonel
Joseph J. Thomas, District Engineer, U.S. Army Engineer District, Nortfolk,
803 Front Street, Norfolk, VA 23510-1096.
As part of its investigation, the examiners committee will hold a public
hearing on June 13, 1990, beginning at 1:00 p.m. in the County Board Room,
Culpeper County Courthouse, 135 West Cameron Street, Culpeper, Virginia.
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 12, 1990.
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 30, 1990.
A copy of the application and accompanying exhibits will be available
during this time for public inspection at each of the following locations:
Culpeper County Chamber of Commerce,
133 West Davis Street,
Culpeper, Virginia 22701.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th and Pennsylvania Avenue, NW., room 2835,
Washington, DC 20230.
Dated: May 29, 1990
John J. Da Ponte, Jr.
Executive Secretary.
[FR Doc. 90-13008 Filed 6-5-90; 8:45 am]
BILLING CODE 3510-DS-M