[Federal Register: October 24, 2005 (Volume 70, Number 204)]
[Notices]              
[Page 61430-61431]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24oc05-28]                        

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

(Docket 50-2005)

Foreign-Trade Zone 38 Greenville-Spartanburg, SC, Application for
Subzone Status, Benteler Automotive Corporation Plant (Automotive
Suspension Components), Duncan, South Carolina

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the South Carolina State Ports Authority, grantee of FTZ
38, requesting special-purpose subzone status for the automotive
suspension components manufacturing plant of Benteler Automotive
Corporation (BAC)(a subsidiary of Benteler AG, of Germany) located in
Duncan, South Carolina. 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 17, 2005.
    The BAC plant (32 acres/191,000 sq. ft.) is located at 1255 Howell
Road in Duncan (Spartanburg County), South Carolina. The facility (130
employees) is used to produce front and rear suspension subassemblies
and modules for automobiles and light trucks (up to 250,000 units
annually) for export and the domestic market. The manufacturing process
at the facility involves machining, assembly, coating, and testing,
using domestic and foreign-origin inputs. Components that are, or may

be, purchased from abroad (representing about 40% of total, by value)
used in manufacturing include: pressure hoses, steering components,
stabilizer bars, bushings, brackets, ARS active stabilizers and motors,
active steering systems, fasteners, steering knuckles, sensors (ABS,
wheel speed, height), drive shafts, differentials, links, shock
absorbers, supports, retainers, inner tubes, rotors, calipers, shields,
brake hoses, brake shoes, electronic damping controllers, ball joints,
electro-mechanical brake components, springs, seals, adjuster screws,
stabilizers, and motors (duty rate range: free - 4.5%).
    FTZ procedures would exempt BAC from Customs duty payments on the
foreign components used in production for export to non-NAFTA
countries. On domestic shipments transferred in-bond to U.S. automobile
assembly plants with subzone status, no duties would be paid on the
foreign components used in automobile and light truck production until
the finished vehicles are formally entered for consumption, at which

time the finished automobile duty rate (2.5%) would be applied to the
foreign-origin components. For the individual suspension components and
subassemblies withdrawn directly by BAC for Customs entry, the finished
automotive part rate (2.5%) could be applied to the foreign inputs
noted above. The application indicates that subzone status would help
improve the facility's 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 following addresses:
1. Submissions via Express/Package Delivery Services: Foreign-Trade
Zones Board, U.S. Department of Commerce, Franklin Court Building
4100W, 1099 14th Street, NW, Washington, DC 20005; or,
2. Submissions via the U.S. Postal Service: Foreign-Trade Zones Board,

U.S. Department of Commerce, FCB 4100W, 1401 Constitution Ave., NW,
Washington, DC 20230.
    The closing period for their receipt is December 23, 2005. Rebuttal
comments

[[Page 61431]]

in response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to January 9, 2006.
    A copy of the application will be available for public inspection
at the Office of the Foreign-Trade Zones Board's Executive Secretary at
address No.1 listed above and at the Office of the Port Director, U.S.
Customs and Border Protection, 150-A West Phillips Road, Greer, SC
29650.

    Dated: October 17, 2005.
Dennis Puccinelli,
Executive Secretary,
[FR Doc. 05-21216 Filed 10-21-05; 8:45 am]
Billing Code: 3510-DS-S