Foreign-Trade Zone (FTZ) 38--Charleston, South Carolina; Notification of Proposed Production Activity; BMW Manufacturing Company, LLC (Passenger Motor Vehicles); Spartanburg, South Carolina

Topics:  BMW

Andrew McGilvray
Department of Commerce
1 February 2021

[Federal Register Volume 86, Number 19 (Monday, February 1, 2021)]
[Notices]
[Pages 7694-7695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02040]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-03-2021]


Foreign-Trade Zone (FTZ) 38--Charleston, South Carolina; 
Notification of Proposed Production Activity; BMW Manufacturing 
Company, LLC (Passenger Motor Vehicles); Spartanburg, South Carolina

    BMW Manufacturing Company, LLC (BMW MC) submitted a notification of 
proposed production activity to the FTZ Board for its facility in 
Spartanburg, South Carolina. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on January 21, 2021.
    BMW MC already has authority to produce gasoline and diesel-powered 
motor vehicles, motor vehicle bodies, stamped body parts, and lithium 
ion batteries within Subzone 38A. The current request would add a 
foreign-status component to the scope of

[[Page 7695]]

authority. Pursuant to 15 CFR 400.14(b), additional FTZ authority would 
be limited to the specific foreign-status component described in the 
submitted notification (as described below) and subsequently authorized 
by the FTZ Board.
    Production under FTZ procedures could exempt BMW MC from customs 
duty payments on the foreign-status component used in export 
production. On its domestic sales, for the foreign-status component 
noted below, BMW MC would be able to choose the duty rate during 
customs entry procedures that applies to passenger motor vehicles (duty 
rate 2.5%). BMW MC 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 component sourced from abroad is electronic toll collection 
systems (duty-free). The request indicates that electronic toll 
collection systems are subject to Section 301 of the Trade Act of 1974 
(Section 301), depending on the country of origin. The applicable 
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 March 15, 2021.
    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.

    Dated: January 26, 2021.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2021-02040 Filed 1-29-21; 8:45 am]
BILLING CODE 3510-DS-P