Foreign-Trade Zone (FTZ) 38--Spartanburg County, South Carolina; Notification of Proposed Production Activity; Michelin North America, Inc. (Tire Assemblies, Wheel Assemblies, Tire Pressure Monitor Systems), Woodruff and Laurens, South Carolina

Topics:  Michelin

Andrew McGilvray
Department of Commerce
3 May 2019

[Federal Register Volume 84, Number 86 (Friday, May 3, 2019)]
[Notices]
[Page 19034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09069]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-28-2019]


Foreign-Trade Zone (FTZ) 38--Spartanburg County, South Carolina; 
Notification of Proposed Production Activity; Michelin North America, 
Inc. (Tire Assemblies, Wheel Assemblies, Tire Pressure Monitor 
Systems), Woodruff and Laurens, South Carolina

    Michelin North America, Inc. (MNAI) submitted a notification of 
proposed production activity to the FTZ Board for its facilities in 
Woodruff and Laurens, South Carolina The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on April 8, 2019.
    MNAI already has authority to produce certain wheel assemblies 
(duty rate--2.5%) within Subzone 38L and Site 5 of FTZ 38. 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 MNAI 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, MNAI 
would be able to choose the duty rates during customs entry procedures 
that apply to: Rubber tire assemblies for motor cars; rubber tire 
assemblies for buses and trucks; rubber tire assemblies for aircraft; 
rubber tire assemblies for motorcycles; rubber tires assemblies for 
bicycles; rubber tire assemblies for agricultural or forestry vehicles 
and machines; rubber tire assemblies for construction, mining or 
industrial handling vehicles; rubber tire assemblies for all-terrain 
vehicles, golf carts, trailers, lawn and garden equipment, and tactical 
vehicles; airless skid steer loader tire assemblies; airless mower tire 
assemblies; wheel assemblies for tram and rail vehicles; airless golf 
cart tire assemblies; wheel assemblies for aircraft; and, tire pressure 
monitor systems (duty rates range from duty free to 4%). MNAI 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: Rubber 
aircraft tires; rubber motorcycle tires; rubber bicycle tires; rubber 
tires for mining equipment; rubber tires for all-terrain vehicles, golf 
carts, trailers, lawn and garden equipment, and tactical vehicles; 
rubber tire tubes; airless skid steer loader tires; hub adapter kits 
for skid steer loaders; airless mower tires; hub adapter kits for 
mowers; antennas; airless golf cart tires; hub adapter kits for golf 
carts; aircraft wheels; and, tire pressure monitor systems (duty rate 
ranges from duty free to 4%). The request indicates that mining 
equipment tires are subject to an antidumping/countervailing duty (AD/
CVD) order if imported from certain countries. The FTZ Board's 
regulations (15 CFR 400.14(e)) require that merchandise subject to AD/
CVD orders, or items which would be otherwise subject to suspension of 
liquidation under AD/CVD procedures if they entered U.S. customs 
territory, be admitted to the zone in privileged foreign status (19 CFR 
146.41). The request also 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.
    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 June 12, 2019.
    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 Diane Finver at 
Diane.Finver@trade.gov or (202) 482-1367.

    Dated: April 26, 2019.
Andrew McGilvray,
Executive Secretary.
 [FR Doc. 2019-09069 Filed 5-2-19; 8:45 am]
 BILLING CODE 3510-DS-P