NOTICES
DEPARTMENT OF COMMERCE
[Docket 19-91; Foreign-Trade Subzone 78A]
Nissan Auto/Truck Plant,
Smyrna, TN; Application for Expansion
Friday, April 19, 1991
An application has been submitted to the Foreign-Trade Zones Board
(the
Board) by the Metropolitan Nashville Port Authority, grantee of FTZ
78 and
Subzone 78A, at the automobile and pickup truck manufacturing plant
of
Nissan Motor Manufacturing Corporation U.S.A., located in Smyrna,
Tennessee,
requesting authority to expand the subzone and the scope of
manufacturing
authority. 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 April 8,
1991.
Subzone 78A was approved in 1982 for the manufacture of pickup
trucks
(Board Order 190, 47 FR 16191, 4/12/82), and the scope of
manufacturing
authority was expanded to include automobiles in 1984 (Board Order
272, 49
FR 35395, 9/7/84). Plant operations include the assembly of some
250,000
vehicles annually and the assembly of certain components such as
engines
and axles for those vehicles.
Nissan is now planning to expand operations at the Smyrna plant
and
requests that its subzone authority be extended to include the
changes. The
company proposes to expand its physical plant onto a 179-acre
parcel
adjacent to the existing 825-acre plant. It also plans to expand
production
to add a line for a new model (mid-sized sedan). Production
capacity would
increase to some 450,000 units per year. In addition, the company
is
planning to produce engines, body and other subassemblies for a
Nissan/Ford
van that will be assembled at an existing Ford facility.
The new operations will use foreign sourced materials and
components
similar to those used in existing production, including engines and
parts,
steel, and components for drivetrain, steering, braking, suspension
and
electrical systems, as well as body parts, accessories, air
conditioning
equipment, wheels and tires. The application indicates that the
value of
foreign material and components will continue at the present
level
(currently, about 60% of total material/component value is
foreign).
Specific items to be sourced from abroad for the new production
include
engine parts, transmissions, steel, pumps, fasteners, brake
parts,
electrical equipment, signal equipment and speedometer parts.
Zone procedures would exempt Nissan from Customs duty payments on
foreign
parts that are used in production for export. On domestic sales, it
would
be able to choose the finished auto duty rate (2.5%). On shipments
to the
other auto assembly subzone duties could be paid when the finished
vehicle
leaves the plant and that company could choose the finished auto
duty rate.
The duty rates on the foreign components range from zero to 9.5
percent.
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; Joel
Mish,
District Director, U.S. Customs Service, South Central Region, 423
Canal
Street, suite 337, New Orleans, LA 70130-2341; and, Colonel James
P. King,
District Engineer, U.S. Army Engineer District Nashville, P.O. Box
1070,
Nashville, TN 37202-1070.
Comments concerning the proposed subzone expansion are invited in
writing
from interested parties. They should be addressed to the Board's
Executive
Secretary at the address below on or before June 3, 1991.
A copy of the application is available for public inspection at
each of the
following locations:
U.S. Department of Commerce, District Office,
Parkway Towers, suite 114,
404 James Robertson Parkway,
Nashville, TN 37219-1505.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th & Pennsylvania Avenue, NW., room 4213
Washington, DC 20230.
Dated: April 12, 1991.
John J. Da Ponte Jr.
Executive Secretary.
[FR Doc. 91-9206 Filed 4-18-91; 8:45 am]