DEPARTMENT OF COMMERCE
                           Foreign-Trade Zones Board

                               [Docket No. 23-81]

                                  46 FR 62487

                               December 24, 1981



Application for Subzone at the Nissan Truck Manufacturing Plant in Smyrna,
Tenn. 

TEXT: Notice is hereby given that an application has been submitted to
the Foreign-Trade Zones Board (the Board) by the Metropolitan-Nashville
Davidson County Port Authority (the Port Authority) requesting authority
for a special-purpose subzone at the truck and parts manufacturing and
assembly facility of Nissan Motor Manufacturing Corporation U.S.A. in
Smyrna, Tennessee, adjacent to the Nashville Customs port of entry. The
application was submitted pursuant to the provisions of the Foreign-Trade
Zones Act, as amended (19 CFR Part 400). It was formally filed on
December 18, 1981. The applicant is authorized to make this proposal
under Section 7-5-107(6), Tennessee Code Annotated. The Port Authority
has an application for a general-purpose foreign-trade zone in Nashville,
filed November 6, 1981, currently pending before the Board (Docket 20-81,
46 FR 56226, 11-16-81).

   The Nissan plant, now under construction, will cover 825 acres on
U.S. Route 41-70S in Smyrna, some 20 miles southeast of the Nashville
Metropolitan Airport. Operations will include stamping, welding, painting
and assembly. The plant's imcoming shipments will include: engines,
transmissions, drive trains. steering and electrical systems,
instrumentation, suspensions, wheels, tires, chassis, body parts, and
metal products. Trucks, with production estimated at 156,000 annually,
and parts will be produced for domestic and overseas markets. At the
outset, the foreign content is expected to be 60 percent of total
material value, dropping to 40 percent as additional domestic sources
are established. 

   Zone procedures will allow Nissan to avoid duty and drawback
procedures on its exports. On its domestic sales, the company will be
able to avoid duty on scrap and rejects and to defer duty on finished
products until entry into Customs territory. Because the duty on trucks
(25% A.V.) is higher that that on components (average 5% A.V.) Nissan
plans to elect privileged status, making its Customs entries on the
foreign components. Subzone status is considered an important factor
in Nissan's shifting production from overseas to the Tennessee
facility, which will employ 2,200 persons.

   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,
D.C. 20230; Max G. Willis, District Director, U.S. Customs Service,
Region V, 423 Canal Street, Room 244, New Orleans, Louisiana 70130;
and Colonel Lee W. Tucker, District Engineer, U.S. Army Engineer
District, Nashville, P.O. Box 1070, Nashville, Tennessee 37202. 

   Comments concerning the proposed subzone are invited in writing from
interested persons and organizations. Submissions shall include 12
copies. They should be addressed to the Board's Executive Secretary at
the address below and postmarked on or before January 29, 1982.

   A copy of the application is available for public inspection at each
of the following locations:


U.S. Dept. of Commerce Satellite Office,
Room 1024, Andrew Jackson Building,
Nashville, Tennessee 37219.


Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th and E Streets, NW., Room 3721,
Washington, D.C. 20230. 

   Dated: December 18, 1981.


John J. Da Ponte, Jr.,
Executive Secretary,
Foreign-Trade Zones Board. 

[FR Doc. 81-36685 Filed 12-23-81; 8:45 am]