Foreign-Trade Zone (FTZ) 38--Spartanburg County, South Carolina; Notification of Proposed Production Activity; ZF Chassis Systems Duncan, LLC, (Automotive Suspension Systems), Duncan, South Carolina

Topics:  ZF

Elizabeth Whiteman
Department of Commerce
30 July 2019

[Federal Register Volume 84, Number 146 (Tuesday, July 30, 2019)]
[Notices]
[Page 36886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16158]



[[Page 36886]]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-45-2019]


Foreign-Trade Zone (FTZ) 38--Spartanburg County, South Carolina; 
Notification of Proposed Production Activity; ZF Chassis Systems 
Duncan, LLC, (Automotive Suspension Systems), Duncan, South Carolina

    ZF Chassis Systems Duncan, LLC (ZF Chassis) submitted a 
notification of proposed production activity to the FTZ Board for its 
facility in Duncan, South Carolina. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on July 23, 2019.
    ZF Chassis already has authority to produce automotive suspension 
systems within FTZ 38. The current request would add 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 described in the submitted 
notification (as described below) and subsequently authorized by the 
FTZ Board.
    Production under FTZ procedures could exempt ZF Chassis 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, ZF Chassis would be able to choose 
the duty rates during customs entry procedures that apply to automotive 
suspension systems (2.5%). ZF Chassis 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: Plastic 
fittings for tubes, pipes, and hoses; plastic mounting clips; paper and 
paperboard labels; iron or steel self-tapping screws; steel threaded 
nuts; steel non-threaded clips; copper non-threaded screws and bolts; 
copper threaded nuts and plugs; vacuum pipes; steel check valves; wheel 
speed sensors/ABS sensors; insulated wiring sets; plastic cable trays; 
steel front axle carriers; drive axles with differentials; steering 
boxes; steering columns; steering gears; steering wheels; angle joint 
assemblies for front axles; and, level sensors (duty rate ranges from 
duty-free to 8.6%). The request indicates that certain materials/
components are subject to special duties under 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 September 9, 
2019.
    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 Juanita Chen at 
juanita.chen@trade.gov or 202-482-1378.

    Dated: July 24, 2019.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2019-16158 Filed 7-29-19; 8:45 am]
 BILLING CODE 3510-DS-P