DEPARTMENT OF COMMERCE
                           Foreign-Trade Zones Board

                               [Docket No. 35-88]

                                  53 FR 45137

                                November 8, 1988


Foreign-Trade Zone 15 -- Kansas City, MO; Application for Subzone; Ortech
Motor Vehicle Component Plant, Kirksville, MO

TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Greater Kansas City Foreign-Trade Zone, Inc. (KCFTZ),
grantee of FTZ 15, requesting special-purpose subzone status for the motor
vehicle component manufacturing plant of Ortech Company (a joint venture
partnership between Orscheln International Company, a Missouri corporation,
and Yuhshin USA, Ltd.), located in Kirksville (Adair County), Missouri. 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 October 26, 1988.

   The Ortech plant (36 acres) is located at 2806 North Industrail Road,
within the Kirksville Industrial Park, Kirksville, some 150 miles northeast
of Kansas City. The plant will be used to produce electronic/mechanical
components for motor vehicles, such as controls, signaling devices, clocks,
touring computers, locks, latches, handles and knobs. The application
indicates that the components made at the plant will displace components
currently being produced in Japan. At the outset, Ortech plans to mostly
use foreign parts and material, including resistors, relays, terminals,
switches, conductors, junction boxes, control panels, instruments, locks,
latches, fittings, mountings and indicator panels. However, the company
expects to source 75 percent of its parts and material domestically
within 4 years. Most of the finished components will be shipped to domestic
auto assembly plants.

   Zone procedures would exempt Ortech from Customs duty payments on
foreign materials and components that are reexported as auto parts. On
products shipped to U.S. auto assembly plants with subzone status, the
company would be able to take advantage of the same duty rate available to
importers of complete automobiles. The duty rates on materials and
components range from 0.0 to 6.5 percent, whereas the rate on autos is 2.5
percent. The applicant indicates that the savings would help improve the
plant'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; Theodore
Galantowicz, District Director, U.S. Customs Service, North Central Region,
7911 Forsythe Boulevard, Suite 625, St. Louis, Missouri 63105; and, Colonel
John Atkinson, District Engineer, U.S. Army Engineer District Kansas City,
700 Federal Building, 601 East 12th Street, Kansas City, Missouri
64106-2896.

   Comments concerning the proposed subzone are invited in writing from
interested parties. They should be addressed to the Board's Executive 
Secretary at the address below and postmarked on or before December 22,
1988. 

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


U.S. Department of Commerce,
District Office, Room 635,
601 East 12th Street,
Kansas City, MO 64106


Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 2835,
14th & Pennsylvania Ave., NW.,
Washington, DC 20230 

   Dated: November 2, 1988.


John J. Da Ponte, Jr.,

   Executive Secretary.  
[FR Doc. 88-25786 Filed DS-7-88; 8:45 am]

   BILLING CODE 3510-DS-M