[Federal Register Volume 75, Number 102 (Thursday, May 27, 2010)]
[Notices]
[Pages 29723-29724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12798]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 38-2010]


Foreign-Trade Zone 29--Louisville, KY; Application for Expansion 
and Expansion of Manufacturing Authority; Subzone 29F; Hitachi 
Automotive Products (USA), Inc. (Automotive Components)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Louisville and Jefferson County Riverport Authority, 
grantee of FTZ 29, on behalf of Hitachi Automotive Products (USA), Inc. 
(HAP), operator of Subzone 29F, HAP plant, Harrodsburg, Kentucky, 
requesting authority to expand the subzone and to expand the scope of 
FTZ manufacturing authority to include new manufacturing capacity. The 
application was submitted pursuant to the provisions of the Foreign-
Trade Zones Act, as amended (19 U.S.C. 81a-81u), and section 
400.28(a)(2) of the Board's regulations (15 CFR part 400). It was 
formally filed on May 20, 2010.
    Subzone 29F was approved by the Board in 1990 with authority 
granted for the manufacture of automotive components at HAP's 
manufacturing plant located at 955 Warwick Road (Site 1) (50 acres) in 
Harrodsburg, Kentucky (Board Order 497, 56 FR 674, 1-8-91). Activity at 
the facility (624 employees) includes machining, assembly, testing, 
warehousing, and distribution of various automotive components, 
including mass air sensors, throttle bodies and chambers, starter 
motors, motor/generator units, alternators, distributors, other static 
converters, inverter modules, rotors/stators, ignition coils, 
electronic sensors and modules, fuel injectors, emissions control 
equipment, valves, pumps, and electronic control units for engines and 
transmissions (capacity--up to 8.5 million units annually). Components 
and materials sourced from abroad (representing 80 percent of the 
finished automotive components' material value) include: adhesives, 
plastic fittings, plastic and rubber belts, fasteners, gaskets/seals/o-
rings, metal fittings, labels, plastic wedging, springs, brackets, 
plates, filters, bearings, air pumps/compressors, valves, switches, 
electric motors, tubes/pipes/profiles, aluminum plugs, transformers, 
crankshafts, camshafts, gears, pulleys, couplings, clutches, parts of 
electric motors, pinions, magnets, ignition parts, diodes, transistors, 
resistors, semiconductors, liquid crystal devices, electrical 
instruments, navigation apparatuses, capacitors, printed/integrated 
circuits, fuses, rheostats, connectors, terminals, piezoelectric 
crystals, regulators, lamps, wires, cables, cylinders, plungers, 
insulators, brushes, brackets, shafts, and measuring instruments (duty 
rate range: Free--9.0%).
    The applicant is now requesting authority to expand the subzone to 
include two new warehouse facilities: Site 2--(68,000 sq. ft.) 601 
Robinson Road in Harrodsburg, Kentucky; and Site 3--(61,010 sq. ft.) 
110 Morgan Soaper Road, Harrodsburg. The company will be expanding its 
manufacturing plant (Site 1) to increase production area that would add 
up to 720,000 additional units to the facility's capacity. The 
applicant also requests that the scope of FTZ manufacturing authority 
be expanded to include the additional production capacity for the 
manufacture of high pressure, direct-injection fuel pumps (new combined 
output would be 9.22 million units per year). The expanded operations 
will involve a continuation of HAP's utilization of both foreign-
sourced and domestic materials and components.
    Expanded FTZ procedures could continue to exempt HAP from customs 
duty payments on the foreign-origin components used in production for 
export (about 30% of shipments). On its domestic shipments, the company 
would be able to elect the duty rate that applies to finished 
automotive components (free--6.7%) for the foreign-origin inputs noted 
above. Subzone status would further allow

[[Page 29724]]

HAP to realize logistical benefits through the use of weekly customs 
entry procedures. Customs duties also could possibly be deferred or 
reduced on foreign status production equipment. HAP would also be 
exempt from duty payments on foreign inputs that become scrap during 
the production process.
    In accordance with the Board's regulations, Pierre Duy of the FTZ 
Staff is designated examiner to evaluate and analyze the facts and 
information presented in the application and case record and to report 
findings and recommendations to the Board.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the following address: Office of the Executive Secretary, 
Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW., 
Washington, DC 20230-0002. The closing period for receipt of comments 
is July 26, 2010. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to August 10, 2010.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
the address listed above and in the ``Reading Room'' section of the 
Board's Web site, which is accessible via http://www.trade.gov/ftz. For 
further information, contact Pierre Duy at <a href="/cdn-cgi/l/email-protection#603009051212054e2415192014120104054e070f16"><span class="__cf_email__" data-cfemail="5c0c35392e2e39721829251c282e3d3839723b332a">[email protected]</span></a> or 
(202) 482-1378.

    Dated: May 20, 2010.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2010-12798 Filed 5-26-10; 8:45 am]
BILLING CODE 3510-DS-P


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