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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
12 February 2018


[Federal Register Volume 83, Number 29 (Monday, February 12, 2018)]
[Notices]
[Pages 5986-5987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02773]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-08-2018]


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 
(Volkswagen), submitted a notification of proposed production activity 
to the FTZ Board for its facility in Chattanooga, Tennessee. The 
notification conforming to the requirements of the regulations of the 
FTZ Board (15 CFR 400.22) was received on January 30, 2018.
    Volkswagen already has authority to produce passenger motor 
vehicles within Site 3 of FTZ 134. The current request would add 
foreign status components to the scope of authority. Pursuant to 15 CFR 
400.14(b), additional FTZ authority would be limited to the specific 
foreign-status components described in the submitted notification (as 
described below) and subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt Volkswagen from 
customs

[[Page 5987]]

duty payments on the foreign-status components used in export 
production. On its domestic sales, for the foreign-status components 
noted below, the company would be able to choose the duty rates during 
customs entry procedures that apply to passenger motor vehicles (duty 
rate--2.5%). Volkswagen would be able to avoid duty on foreign-status 
components which become scrap/waste. Customs duties also could possibly 
be deferred or reduced on foreign-status production equipment.
    The components sourced from abroad include T-Piece/plastic pipes 
and stainless-steel flanges (duty rate ranges from 3.1 to 6.2%).
    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 March 24, 2018.
    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 website, which is accessible via www.trade.gov/ftz.
    For further information, contact Christopher Wedderburn at 
Chris.Wedderburn@trade.gov or (202) 482-1963.

    Dated: February 5, 2018.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2018-02773 Filed 2-9-18; 8:45 am]
BILLING CODE 3510-DS-P

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