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DEPARTMENT OF COMMERCE
[Docket 11-97]

Foreign-Trade Zone 26--Atlanta, GA, Area, Expansion of
Manufacturing Authority-Subzone 26D, Yamaha Motor Manufacturing
Corporation of America Plant (All-Terrain Vehicles), Newnan, GA

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Georgia Foreign-Trade Zone, Inc., grantee of FTZ 26,
requesting on behalf of the Yamaha Motor Manufacturing Corporation of
America (YMMC), operator of FTZ Subzone 26D, YMMC plant, Newnan,
Georgia, an expansion of the scope of authority to include the
manufacture of all-terrain vehicles under FTZ procedures within Subzone
26D. It was formally filed on March 6, 1997.
    Subzone 26D was approved by the Board in 1989 with activity granted
for the manufacture of personal water craft and golf cars (Board Order
433, 54 FR 24370, 6-7-89). The manufacturing authority for golf cars is
subject to a restriction that requires privileged foreign status (19
CFR 146.41) to be elected on all foreign components.
    YMMC is now requesting authority to expand the scope of FTZ
authority to include the manufacture of four wheel, all-terrain
vehicles (ATVs) under FTZ procedures for the U.S. market and export.
The plant's manufacturing space will be increased from 400,000 to
540,000 square feet within the 238-acre plant site. The new all-terrain
vehicle activity will involve welding, plastic molding, painting, and
assembly using domestic and foreign components. Foreign-sourced
components and subassemblies will comprise approximately 49 percent of
the finished ATVs material value, and include: engines, head/tail
lights, wiring harnesses, electrical components, spark plugs, flanges/
spacers/grommets, ignition coils, starter motors, breathers, pulleys,
exhaust components, carburetors, axles, pinion gears, brake components,
fasteners, shock absorbers, springs, bearings, hoses, gaskets/seals, o-
rings, steering gears (duty rate range: free-8.9%). The application
indicates that 54 percent of the finished ATVs' material value will be
U.S. sourced within four years of the launch of production.
    FTZ procedures would exempt YMMC from Customs duty payments on the
foreign components used in export activity (about 2% of shipments). On
its domestic sales, the company would be able to elect the duty rate
that applies to finished ATVs (2.5%) for the foreign components noted
above. The application indicates that the savings from FTZ procedures
would help improve the plant's international competitiveness.
    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 May 19, 1997. Rebuttal comments in response
to material submitted during the foregoing period may be submitted
during the subsequent 15-day period (to June 2, 1997).
    A copy of the application will be available for public inspection
at the following location: Office of the Executive Secretary, Foreign-
Trade


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Zones Board, Room 3716, U.S. Department of Commerce, 14th Street and
Pennsylvania Avenue, NW., Washington, DC 20230.

    Dated: March 10, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-6683 Filed 3-17-97; 8:45 am]
BILLING CODE 3510-DS-P