DEPARTMENT OF COMMERCE
Docket A(32b1)-4-96
Foreign-Trade Zone 39--Dallas/Fort Worth, TX, Request for
Manufacturing Authority, Selective Technology, Inc. (Automotive Air-
Conditioner Components)
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Dallas/Fort Worth International Airport Board,
grantee of FTZ 39, pursuant to Sec. 400.32(b)(1) of the Board's
regulations (15 CFR Part 400), requesting authority on behalf of
Selective Technologies, Inc. (Seltec) (a joint-venture of Tama
Manufacturing and Zexel, of Japan), to manufacture automotive air-
conditioner compressors under zone procedures within FTZ 39. It was
formally filed on October 18, 1996.
Seltec operates an automotive air-conditioner compressor assembly
facility (50 employees) within FTZ 39, and this application requests
authority to allow Seltec to conduct the activity under FTZ procedures.
Seltec's compressors are sold in the automotive parts aftermarket and
to specialty original equipment motor vehicle manufacturers in the U.S.
and abroad. The activity involves the assembly of finished air-
conditioner compressors using foreign-sourced compressor units
(comprising about 72% of the finished products' value) and foreign and
domestically-sourced electromagnetic clutches. The application
indicates that 32 percent of the finished air-conditioner compressors'
material value will be U.S. sourced within two years.
Zone procedures would exempt Seltec from Customs duty payments on
the foreign components used in export activity (some 50% of shipments).
On its domestic sales, Seltec would be able to elect the duty rate that
applies to finished automotive air-conditioner compressors (2.0%) for
the foreign electromagnetic clutches as they are processed for Customs
entry, rather than the higher rate on electromagnetic clutches (3.6%).
The motor vehicle duty rate (2.5%) could apply to the foreign
electromagnetic clutches that are shipped as part of air-conditioner
compressors to motor vehicle assembly plants with subzone status for
inclusion into finished motor vehicles under FTZ procedures. The
application indicates that the savings from FTZ procedures would help
improve the plant's international competitiveness.
Public comment on the application is invited from interested
parties. Submissions (original and three copies) shall be addressed to
the Board's Executive Secretary at the address below. The closing
period for their receipt is November 29, 1996. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to December 16, 1996).
A copy of the application will be available for public inspection
at the following location: Office of the Executive Secretary, Foreign-
Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th Street
and Pennsylvania Avenue, NW., Washington, DC 20230.
Dated: October 22, 1996.
John J. Da Ponte, Jr.
Executive Secretary
[FR Doc. 96-27856 Filed 10-29-96; 8:45 am]