DEPARTMENT OF COMMERCE
                           Foreign-Trade Zones Board

                           [Docket Nos. 17 and 18-84]

                                  49 FR 18882

                                  May 3, 1984


Foreign-Trade Zone 41, Milwaukee, Wisconsin; Application for Subzones at
General Motors Auto and Electronic Products Plants in Janesville and Oak
Creek, Wisconsin

TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Foreign-Trade Zone of Wisconsin, Ltd. (FTZW), grantee of
Foreign-Trade Zone 41, Milwaukee, requesting special-purpose subzone status
for General Motors Corporation (GM) plants in Janesville (Doc. 17-84) and
Oak Creed (Doc. 18-84). Wisconsin, adjacent to the Milwaukee Customs port
of entry. The application was submitted pursuant to the provisions of the
Foreign-Trade Zones Act, as amended (19 USC 81a-81u), and the regulations
of the Board (15 CFR Part 400). It was formally filed on April 27, 1984.
The applicant is authorized to make this proposal under Chapter 110 of the
Wisconsin Laws of 1977, approved October 13, 1977.

   On September 29, 1978, the Board authorized FTZW to establish a foreign-
trade zone project in the Milwaukee area (Board Order 136, 43 FR 46887,
10/11/78). On August 4, 1981, FTZW was authorized to expand the project and
to sponsor subzones for American Motors in Kenosha and for Muskegon Piston
Ring in Manitowoc (Board Order 178, 46 FR 40718, 8/11/81).

   The proposed subzones will be located at GM's two plants in the Milwaukee
area. One is GM's Janesville plant (Doc. 17-84), a 126-acre automobile
manufacturing facility at 1000 Industrial Avenue, Janesville, some 60 miles
southwest of Milwaukee. The other is the company's Oak Creek Plant (Doc.
18-84), a 155-acre electronic products manufacturing facility at 7929 Howell
Avenue in Oak Creek, some 12 miles south of downtown Milwaukee, with a 1-
acre satellite facility at 4066 North Port Washington Road in Milwaukee. 

   The Janesville plant employs 6400 persons producing Chevrolet Cavalier
and Cadillac Cimarron model automobiles and Chevrolet/GMC light trucks.
Although most of the parts and material used at the plant are produced
domestically, 9 percent of the components are imported, including
transaxles, heat shields, bumpers and radios. A smaller percentage of the
vehicles are exported. 

   The Oak Creek plant is for GM's Delco Electronics, AC Spark Plug and
Power Products Divisions. The facility employs 2000 persons and produces
auto engine on-board computers, auto engine control modules, and inertial
aviation navigation systems. Some 7 percent of the components used in the
plant's production is purchased from foreign sources, including semi-
conductors, electronic sub-assemblies, and other electronic parts. About 19
percent of finished electronic products are exported.

   Zone procedures will exempt GM from paying duties on foreign components
used on its exports. On its domestic sales the company will be able to
defer duty and to take advantage of the same duty rate available to
importers of finished autos. The estimated average duty rate on the foreign
components used by GM is 4.2 percent at its auto assembly plants and about
7 percent at electronics products plants, whereas the rate for finished
autos in 2.7 percent. The reduction of Customs costs is part of GM's
overall program to modernized and reduce costs at its U.S. assembly plants,
making them more competitive with auto assembly facilities offshore.

   In accordance with the Board's regulations, and 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, Washingtn, D.C. 20230; Clinton P.
Littlefield, District Director, U.S. Customs Service, North Central Region,
628 E. Michigan St., Milwaukee, WI 53202; for Docket No. 17-84, Colonel
Bernard P. Slofer, District Engineer, U.S. Army Engineer District Rock
Island, Clock Tower Bldg., Rock Island, IL 61201; and for Docket No.
18-84, Colonel Raymond T. Beurket, District Engineer, U.S. Army Engineer
District Detroit, P.O. Box 1027, Detroit, MI 48231. 

   Comments concerning the proposed subzones are invited in writing from
interested persons and organizations. They should be addressed to the
Board's Executive Secretary at the address below and postmarked on or
before June 8, 1984.

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


U.S. Dept. of Commerce District Office,
Federal Building,
517 East Wisconsin Ave.,
Milwaukee, WI 53202


Office of the Executive Secretary
Foreign-Trade Zones Board,
U.S. Department of Commerce Room 1872,
14th and Pennsylvania NW.,
Washington, D.C. 20230. 

   Dated: April 27, 1984.


John J. Da Ponte, Jr.,

   Executive Secretary.  
[FR Doc. 84-11964 Filed 5-2-84; 8:45 am]

   BILLING CODE 3510-DS-M