The subzone would be located at IBM's plant at New Circle and Newton Roads, Lexington, Kentucky. Up to 5 percent of the plant's components are purchased from abroad, including motors, power supplies, electronic components, and a variety of mechanical parts. Some 19 percent of the finished products are expected to be exported in the current year. Zone procedures would allow IBM to avoid duty payment on the foreign components it uses in its exports. On its domestic sales, the company will be able to take advantage of the same duty rate available to importers.
Typewriters are duty-free.
Keyboards and printers are dutiable at 4.0 and 3.0 percent, respectively. Zone procedures will thus help the plant become more competitive with manufacturing facilities abroad. In accordance with the Board's regulations, an examiners committee has been appointed to investigate the application and report to the Board. Comments concerning the proposed subzone 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 May 23, 1985.