[Federal Register Volume 63, Number 127 (Thursday, July 2, 1998)]
[Notices]
[Page 36213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17687]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 33-98]


Foreign-Trade Zone 38 `` Spartanburg, SC, Application for Subzone 
Status; Borg-Warner Automotive Powertrain Systems Corporation 
(Automotive Transfer Cases); Seneca, 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 
transfer case manufacturing plant of Borg-Warner Automotive Powertrain 
Systems Corporation (BWA), located in Seneca, 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 June 23, 1998.
    The BWA plant (78 acres, 211,000 sq.ft.), is located at 15545 Wells 
Highway in Seneca (Oconee County), South Carolina, about 40 miles 
southwest of Greenville. The facility (175 employees) is used to 
produce transfer cases for all-wheel drive passenger vehicles 
manufactured at the Mercedes-Benz motor vehicle assembly plant in 
Alabama, as well as for export. The application indicates that foreign-
sourced parts and materials comprise some 27 percent of the finished 
transfer cases' value, including: chain, fasteners, steel belts/cable/
wire, crown corks and seals, parts of engines, ball/roller bearings, 
oil seals, rubber gaskets/washers/seals, electromagnetic couplings and 
clutches, gear boxes, and automatic regulating and controlling 
instruments (duty rates: free-9.4%).
    FTZ procedures would exempt BWA from Customs duty payments on the 
foreign items used in production for export. On domestic shipments 
transferred in-bond to the Mercedes-Benz plant (Subzone 98A, Board 
Order 803, 61 FR 8237, 3-4-96), no duties would be paid on foreign-
origin components of the transfer cases until Mercedes enters the 
finished motor vehicles for domestic consumption, at which time, 
Mercedes could choose to apply the finished auto duty rate (2.5%), 
rather than the rate on the individual parts. Mercedes would pay no 
duties on its exports. For finished transfer cases withdrawn for 
Customs entry, BWA would be able to choose the automotive transfer case 
duty rate (2.6%) for the foreign-origin items noted above. The 
application indicates that the savings from FTZ procedures would help 
improve the plant'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 address below. The closing 
period for their receipt is August 31, 1998. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to September 15, 1998.)
    A copy of the application and the accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce Export Assistance Center, Park Central 
Office Park, Building 1, Suite 109, 555 N. Pleasantburg Drive, 
Greenville, SC 29607.
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue, 
NW, Washington, DC 20230.

    Dated: June 23, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-17687 Filed 7-1-98; 8:45 am]
BILLING CODE 3510-DS-P