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Foreign-Trade Zone (FTZ) 126--Reno, Nevada, Notification of Proposed Production Activity, Tesla Motors, Inc., Subzone 126D; (Lithium-Ion Batteries, Electric Motors and Stationary Energy Storage Systems), Sparks, Nevada

American Government Topics:  Tesla

Foreign-Trade Zone (FTZ) 126--Reno, Nevada, Notification of Proposed Production Activity, Tesla Motors, Inc., Subzone 126D; (Lithium-Ion Batteries, Electric Motors and Stationary Energy Storage Systems), Sparks, Nevada

Andrew McGilvray
Department of Commerce
10 August 2016

[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)]
[Pages 52824-52825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18917]



Foreign-Trade Zones Board


Foreign-Trade Zone (FTZ) 126--Reno, Nevada, Notification of 
Proposed Production Activity, Tesla Motors, Inc., Subzone 126D; 
(Lithium-Ion Batteries, Electric Motors and Stationary Energy Storage 
Systems), Sparks, Nevada

    The Economic Development Authority of Western Nevada, grantee of 
FTZ 126, submitted a notification of proposed production activity to 
the FTZ Board on behalf Tesla Motors, Inc. (Tesla), operator of Subzone 
126D, for its facility located in Sparks, Nevada. The notification 
conforming to the requirements of the regulations of the FTZ Board (15 
CFR 400.22) was received on July 20, 2016.
    The facility is used for the production of lithium-ion batteries, 
electric motors and stationary energy storage systems. Pursuant to 15 
CFR 400.14(b), FTZ activity would be limited to the specific foreign-
status materials and 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 Tesla from customs 
duty payments on the foreign-status materials and components used in 
export production. On its domestic sales, Tesla would be able to choose 
the duty rates during customs entry procedures that apply to lithium-
ion batteries/cells/modules, electric motors, and stationary energy 
storage systems (duty rates--2.8% or 3.4%) for the foreign-status 
inputs noted below. Customs duties also could possibly be deferred or 
reduced on foreign-status production equipment.
    The components and materials sourced from abroad include: Carbon 
black; silicon oxide; nickel cobalt aluminum cathode material; 
coolants; ethyl methyl carbonate; ethylene carbonate; n-methyl-2-
pyrrolidone; preparations based on carbon black; lubricants for gears; 
automatic transmission fluid lubricants; grease; adhesives; epoxy 
hardeners; graphite; joint compound; battery electrolyte; carbon black 
solution (AB paste); sealants; methacrylate-butadiene-styrene (MBS) 
copolymers; polyvinylidene fluoride (PVDF); carboxymethylcellulose 
(CMC); electrical tape; polyethylene separators; polypropylene 
separators; plastic tubing/fittings for hoses/gap pads/bags/caps and 
closures/plugs/trays/baffle inserts/brackets/cable supports/cable ties/
clips/fasteners/gaskets/heatshrink/mounts and fittings/o-rings/seals/
pipes for stators/covers for converters; plastic self-adhesive sheets 
in rolls/tapes/films/labels/strips; butadiene-styrene-alkyl-
methacrylate copolymer; styrene-butadiene rubber (SBR); rubber hoses/o-
rings/seals/bumpers/grommets/isolator bushings; labels; nickel-plated 
steel sheets; steel pipes for rotors/pipe bends and elbow fittings/
other pipe fittings/tubefittings/mesh/bolts/screws/locknuts/nuts/plugs/
studs/washers/dowel pins/springs/caps/clamps/clips/retainer plates/
rings; copper profiles for rotors/bars for rotors/shield plates/foil/
ferrules; brass standoffs; nickel alloy plates; nickel copper tabs 
(copper ribbon); aluminum alloy bonding wire and sheets; aluminum foil/
tube fittings/spacers/discs/clamps/plugs/cooling tubes/capacitors; 
tubular keys; metal hinges/brackets for motor vehicles/fittings for 
motor vehicles/brackets and mounts suitable for buildings/brackets/
fittings/mounts/latches/spacers for rotors; braze rings; displacement 
pumps; electric oil pumps; centrifugal pumps; compressors; fans; parts 
of compressors; battery chillers; heat exchangers; radiator/condenser 
assemblies; parts of heat exchangers; parts of radiators; oil filters; 
housings for air filters; parts of air filters; parts of oil filters; 
air particle separators; pressure relief valves; check valves; breather 
valves; coolant manifolds; parts of breather valves; valve bodies; 
drive unit assemblies; bearing endbells; heat sinks for drive units; 
housings for motors; inverter gearcases; laminations for stators; motor 
gearcases; parts of bearing endbells; parts of encoders; parts of 
gearcases; parts of heat sinks to drive units; other parts of motors; 
rotor endcaps; rotor shafts; rotor stacks; rotors; stator stacks; 
stators; electrical transformers; drive inverters; power supplies; 
ferrite beads; power inductors; doors for thermal power supplies; 
housings for drive inverters; parts of drive inverters; parts

[[Page 52825]]

of manifolds for inverters; parts of power supplies; printed circuit 
board assemblies for converters; printed circuit board assemblies for 
power supplies; magnets; finished lithium-ion batteries; finished 
lithium-ion batteries for electrically powered vehicles; battery 
exhaust ducts; connectors for batteries; enclosures for finished 
battery packs (and parts thereof); fittings for lithium-ion battery 
cells; fittings for lithium-ion battery modules; insulators for 
lithium-ion battery modules; layer and aramid heat resistance layers 
(separators); lithium-ion battery cells; lithium-ion battery modules; 
multilayer laminated film layered by polyolefin base; parts of heat 
sinks to lithium-ion batteries, parts of lithium-ion battery cells and 
modules; side rails for lithium-ion battery enclosures; steel 
enclosures for batteries (and parts thereof); terminal plates; top 
plates for lithium-ion battery cells; vents; capacitors; single layer 
ceramic dielectrics; multilayer ceramic dielectrics; fixed film 
resistors; fixed resistors; thermistors; flexible printed circuit board 
assemblies; fuses; grounding wires; electrical relays; electrical 
switches; connectors for printed circuit board assemblies; pin 
receptacles; wire harness connectors; busbars; electrical connectors; 
junction boxes; lug connectors; terminal lugs; terminals; controller 
boards; switchboards; housings for controllers; housings for junction 
boxes; housings for plastic connectors; metal contacts; molded parts 
for printed circuit board assemblies; parts of connectors; parts of 
fuses; plates for junction boxes; printed circuit board assemblies for 
controllers; printed circuit board assemblies; diodes; transient 
voltage suppression (TVS) diodes; transistors; LED lights; programmable 
integrated circuits; operational amplifiers; other integrated circuits; 
crystal oscillators; encoder wheels; wire harnesses; thermal barriers; 
ceramic insulators; plastic insulating fittings; cross shafts; gear box 
coolers; intermediate shafts; parts of gears; pinion gears; 
differential roll pins; differentials; housings for differentials; 
parts of differentials; parts of drive shafts; baffles for oil pans; 
sensors; and, thermal regulators (duty rate ranges from free to 8.5%).
    Public comment is invited from interested parties. Submissions 
shall be addressed to the FTZ Board's Executive Secretary at the 
address below. The closing period for their receipt is September 19, 
    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 
FTZ Board's Web site, which is accessible via www.trade.gov/ftz.
    For further information, contact Diane Finver at 
Diane.Finver@trade.gov or (202) 482-1367.

    Dated: August 2, 2016.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2016-18917 Filed 8-9-16; 8:45 am]

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