Foreign-Trade Zone (FTZ) 126--Reno, Nevada; Notification of Proposed Production Activity; Tesla, Inc. (Battery Penthouse Controllers); McCarren and Sparks, Nevada

Topics:  Tesla

Andrew McGilvray
Department of Commerce
19 June 2020

[Federal Register Volume 85, Number 119 (Friday, June 19, 2020)]
[Notices]
[Pages 37060-37061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13268]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-38-2020]


Foreign-Trade Zone (FTZ) 126--Reno, Nevada; Notification of 
Proposed Production Activity; Tesla, Inc. (Battery Penthouse 
Controllers); McCarren and Sparks, Nevada

    Tesla, Inc. (Tesla) submitted a notification of proposed production 
activity to the FTZ Board for its facilities in McCarren and Sparks, 
Nevada. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on June 10, 
2020.
    Tesla already has authority to produce lithium-ion batteries, 
electric motors, and stationary energy storage systems within Subzone 
126D. The current request would add a finished product and eleven 
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 
product 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/components used in export 
production. On its domestic sales, for the foreign-status materials/
components noted below and in the existing scope of authority, Tesla 
would be able to choose the duty rate during customs entry procedures 
that apply to battery penthouse controllers (duty rate 2.7%). 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 materials/components sourced from abroad include battery 
penthouse controllers, plastic carriers, aluminum gaskets, gearbox 
casings, power converters, radial bearings, resolver sensors, rotor 
rings, unsaturated polyester imide resin, plastic vents, and voltage 
measurement boards (duty rate ranges from duty-free to 6.5%). The 
request indicates that certain materials/components are subject to 
special duties under Section 232 of the Trade

[[Page 37061]]

Expansion Act of 1962 (Section 232) or Section 301 of the Trade Act of 
1974 (Section 301), depending on the country of origin. The applicable 
Section 232 and 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 July 29, 2020.
    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: June 15, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-13268 Filed 6-18-20; 8:45 am]
BILLING CODE 3510-DS-P