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Foreign-Trade Zone (FTZ) 18--San Jose, California; Notification of Proposed Production Activity; Tesla, Inc. (Electric Passenger Vehicles and Components); Fremont and Palo Alto, California


American Government Topics:  Tesla

Foreign-Trade Zone (FTZ) 18--San Jose, California; Notification of Proposed Production Activity; Tesla, Inc. (Electric Passenger Vehicles and Components); Fremont and Palo Alto, California

Elizabeth Whiteman
Department of Commerce
14 August 2018 

[Federal Register Volume 83, Number 157 (Tuesday, August 14, 2018)]
[Notices]
[Page 40226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17417]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-49-2018]


Foreign-Trade Zone (FTZ) 18--San Jose, California; Notification 
of Proposed Production Activity; Tesla, Inc. (Electric Passenger 
Vehicles and Components); Fremont and Palo Alto, California

    Tesla, Inc. (Tesla) submitted a notification of proposed production 
activity to the FTZ Board for its facilities in Palo Alto and Fremont, 
California. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on August 1, 
2018.
    Tesla already has authority to produce electric vehicles and 
components of electric vehicles within Subzone 18G. The current request 
would add one foreign status material/component to the scope of 
authority. Pursuant to 15 CFR 400.14(b), additional FTZ authority would 
be limited to the specific foreign-status material/component 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 material/component used in export 
production. On its domestic sales, for the foreign-status material/
component noted below, Tesla would be able to choose the duty rates 
during customs entry procedures that apply to electric passenger 
vehicles and related components (duty-free to 3.4%). Tesla 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 material/component sourced from abroad is an automotive 
navigation apparatus (electronic control unit) (duty-free).
    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 September 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 Juanita Chen at 
juanita.chen@trade.gov or 202-482-1378.

    Dated: August 8, 2018.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2018-17417 Filed 8-13-18; 8:45 am]
 BILLING CODE 3510-DS-P




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