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Foreign-Trade Zone (FTZ) 134--Chattanooga, Tennessee; Notification of Proposed Production Activity; Volkswagen Group of America--Chattanooga Operations, LLC; (Passenger Motor Vehicles); Chattanooga, Tennessee

American Government Special Collections Reference Desk

American Government Topics:  Volkswagen

Foreign-Trade Zone (FTZ) 134--Chattanooga, Tennessee; Notification of Proposed Production Activity; Volkswagen Group of America--Chattanooga Operations, LLC; (Passenger Motor Vehicles); Chattanooga, Tennessee

Andrew McGilvray
Department of Commerce
7 December 2016


[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88210-88211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29348]


=======================================================================
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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-81-2016]


Foreign-Trade Zone (FTZ) 134--Chattanooga, Tennessee; 
Notification of Proposed Production Activity; Volkswagen Group of 
America--Chattanooga Operations, LLC; (Passenger Motor Vehicles); 
Chattanooga, Tennessee

    Volkswagen Group of America--Chattanooga Operations, LLC (VW) 
submitted a notification of proposed production activity to the FTZ 
Board for its facility in Chattanooga, Tennessee, within FTZ 134. The 
notification conforming to the requirements of the regulations of the 
FTZ Board (15 CFR 400.22) was received on November 25, 2016.
    VW already has authority to produce passenger motor vehicles within 
Site 3 of FTZ 134. The current request would add foreign status 
materials/components to the scope of authority. Pursuant to 15 CFR 
400.14(b), additional FTZ authority would be limited to the specific 
foreign-status materials/components and specific finished products 
described in the submitted notification (as described below) and 
subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt VW from customs duty 
payments on the foreign-status materials/components used in export 
production. On its domestic sales, VW would be able to choose the duty 
rates during customs entry procedures that apply to passenger motor 
vehicles (duty rate 2.5%) for the foreign-status materials/components 
noted below and in the existing scope of authority. Customs duties also 
could possibly be deferred or reduced on foreign-status production 
equipment.
    The materials/components sourced from abroad include: Gasoline; 
diesel fuel, polyurea grease; hydraulic oil; polycarbamide grease; 
refrigerant; urea; clear lacquer; blending solvent; PVC finishing 
sheet; canvas covers; aluminum chassis plate; screw driver bits; 
software; spindle drives; aux-in ports; optical fiber cable; white 
motor vehicle bodies; and, prototype vehicles

[[Page 88211]]

and engines (duty rate ranges from free to 5.7% + .013/KG).
    Public comment is invited from interested parties. Submissions 
shall be addressed to the Board's Executive Secretary at the address 
below. The closing period for their receipt is January 17, 2017.
    A copy of the notification will be available for public inspection 
at the Office of the Executive Secretary, Foreign-Trade Zones Board, 
Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230-0002, and in the ``Reading Room'' section of the 
Board's Web site, which is accessible via www.trade.gov/ftz.
    For further information, contact Christopher Kemp at 
Christopher.Kemp@trade.gov or (202) 482-0862.

    Dated: November 30, 2016.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2016-29348 Filed 12-6-16; 8:45 am]
 BILLING CODE 3510-DS-P

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