[Federal Register: February 27, 2001 (Volume 66, Number 39)]
[Notices]
[Page 12460]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27fe01-25]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 10-2001]

Foreign-Trade Zone 39--Dallas/Fort Worth, TX; Application for
Expansion of Manufacturing Authority--Subzone 39C Sanden International
(USA), Inc., Facilities Wylie, Texas (Motor Vehicle Air-Conditioner
Components)

    A application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Dallas/Fort Worth International Airport Board,
grantee of FTZ 39, requesting an expansion of the scope of
manufacturing authority to include new manufacturing capacity under FTZ
procedures and requesting authority to expand Subzone 39C at the Sanden
International (USA), Inc. (Sanden), facility in Wylie, Texas. It was
formally filed on February 14, 2001.
    Subzone 39C was approved by the Board in 1993 with authority
granted for the manufacture of air-conditioner compressors, evaporator
coils, and related components (1.3 million units/year) for use in motor
vehicles, trucks and heavy equipment at Sanden's manufacturing plant
(95 acres/437,000 sq. ft.) in Wylie, Texas (Board Order 666, 59 FR 60,
1-3-94).
    The applicant is now requesting authority to expand the subzone to
include a new 13-acre site (``Miller Road'' facility) with an
additional 178,000 square feet of manufacturing/warehouse space located
at 10710 Sanden Drive in Dallas, Texas. Under Sanden's current

expansion plan, the production and warehousing area under FTZ
procedures would be increased to a total of 615,000 square feet.
Activity at the facilities (841 employees) involves machining and
assembly of compressors, clutches, and evaporator coils. Components
sourced from abroad include: clutch assemblies, crankshafts, pistons,
castings, gears, heat insulators, rotor shafts/assemblies, centering
balls, rings, electrical switches, coil covers, housings, fan/motor
assemblies, gaskets, armature plates, rubber seals and dampers,
bearings, plugs, pulleys, valves and retainers, fasteners, springs,
sleeves, clamps, bushings, dust covers, caps, coil rings and windings,
felt rings, and labels (duty rate range: free-9.9%), representing some
40 percent of total purchases.
    FTZ procedures exempt Sanden from Customs duty payments on the
foreign components used in export production (some 450,000 units/year,
about 19% of total U.S. production). On its domestic sales, the company
is able to choose the duty rate that applies to finished air-

conditioner compressors and related components (duty free) for the
foreign components noted above. Foreign status and domestic status
merchandise destined for export would be exempt from certain local ad
valorem inventory taxes. The request indicates that the savings from
FTZ procedures will continue to help improve the facilities'
international competitiveness.
    In accordance with the Board's regulations, a member of the FTZ
Staff has been designated examiner to investigate the application and
report to the Board.
    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 April 30, 2001. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period to May 14, 2001.
    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

4008, U.S. Department of Commerce, 14th Street & Constitution Avenue,
NW, Washington, DC 20230.

    Dated: February 14, 2001.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 01-4773 Filed 2-26-01; 8:45 am]
BILLING CODE 3510-DS-P