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
24 September 2020

[Federal Register Volume 85, Number 186 (Thursday, September 24, 2020)]
[Notices]
[Page 60131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21102]



[[Page 60131]]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-58-2020]


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 September 18, 2020.
    Volkswagen already has authority to produce passenger motor 
vehicles within FTZ 134. The current request would add finished 
products and 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 Volkswagen from 
customs duty payments on the foreign-status materials/components used 
in export production. On its domestic sales, for the foreign-status 
materials/components noted below and in the existing scope of 
authority, Volkswagen would be able to choose the duty rates during 
customs entry procedures that apply to electric vehicles and electric 
vehicle batteries (duty rate ranges from 2.5% to 3.4%). 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 materials/components sourced from abroad include: Gap fillers 
(fills the space between the battery modules and battery packs); 
battery housings; battery housing frames; cross beams; side members; 
extruded aluminum structural members for battery housings; floor piece 
assemblies; floor piece cooling systems; crash protection assemblies; 
battery cover plates; automatic circuit breaker molded cases; relays; 
electric insulation polymer padding; plastic lids/covers for supporting 
plates; box assemblies comprised of supporting plates, box insulation, 
box protection, fuses and cover assemblies; box cover assemblies made 
from a mix of nylon polymer and copper alloys; supporting plates (metal 
construction with a plastic shield that is used to support battery 
control modules); and, transportation covers used to protect the 
connectors for battery packs (duty rate ranges from 2.7% to 3.4%). The 
request indicates that certain materials/components are subject to 
duties under Section 232 of the Trade Expansion Act of 1962 (Section 
232) and Section 301 of the Trade Act of 1974 (Section 301), depending 
on the country of origin. The applicable Section 232 and Section 301 
decisions require subject merchandise to be admitted to FTZs in 
privileged foreign status (19 CFR 146.41).
    Public comment is invited from interested parties. Submissions 
shall be addressed to the Board's Executive Secretary and sent to: 
ftz@trade.gov. The closing period for their receipt is November 3, 
2020.
    A copy of the notification will be available for public inspection 
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: September 18, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-21102 Filed 9-23-20; 8:45 am]
BILLING CODE 3510-DS-P