Foreign-Trade Zone (FTZ) 75--Phoenix, Arizona; Notification of Proposed Production Activity; Lucid Motors USA, Inc;. (Electric Automobiles and Subassemblies); Casa Grande and Tempe, Arizona

Topics:  Lucid

Andrew McGilvray
Department of Commerce
16 June 2020

[Federal Register Volume 85, Number 116 (Tuesday, June 16, 2020)]
[Notices]
[Pages 36375-36376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12951]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-37-2020]


Foreign-Trade Zone (FTZ) 75--Phoenix, Arizona; Notification of 
Proposed Production Activity; Lucid Motors USA, Inc;. (Electric 
Automobiles and Subassemblies); Casa Grande and Tempe, Arizona

    Lucid Motors USA, Inc. (Lucid Motors) submitted a notification of 
proposed production activity to the FTZ Board for its facilities in 
Casa Grande and Tempe, Arizona. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on June 2, 2020.
    The Lucid Motors facilities are located within Subzone 75N. The 
facilities will be used for the production of electric passenger 
automobiles and subassemblies. 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 Lucid Motors from 
customs duty payments on the foreign-status components used in export 
production. On its domestic sales, for the foreign-status materials/
components noted below, Lucid Motors would be able to choose the duty 
rates during customs entry procedures that apply to electric passenger 
vehicles (for nine or less people), lithium-ion battery packs for 
electric vehicles, drive inverters, AC motors, DC/DC converters, and 
differentials (duty rate ranges from duty-free to 3.4%). Lucid Motors 
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 components and materials sourced from abroad include: Rigid 
plastic tubing (ethylene; propylene; vinyl chloride); plastic tubes 
(having a minimum burst pressure of 27.6 MPa; not reinforced, without 
fittings; not reinforced, with fittings; reinforced); plastic 
components (fittings for hoses; gap pads; caps and closures; plugs; 
door handles; trays; baffle inserts; brackets; cable supports; cable 
ties; clips; fasteners; gaskets; mounts and fittings; O-rings; seals; 
washers; converter covers; vents; brake hoses; seat organizers); 
electrical tape; self-adhesive plastic components (sheet in rolls; 
tape; film; labels; strips); separators (polyethylene; polypropylene; 
air particle); butadiene-styrene-alkyl-methacrylate copolymer; styrene-
butadiene rubber; rubber hoses (not reinforced, with or without 
fittings; reinforced, with or without fittings); radial tires; rubber 
components (O-rings; rings; seals; gaskets; washers; bumpers; grommets; 
bushings); natural rubber spring isolators; paper labels; carpet; 
passenger window tempered safety glass; windshields of laminated safety 
glass (not framed and not fitted; cut-to-size, framed to fit, framed 
with ceramic frit coating); nickel plated steel sheet; steel components 
(pipes for rotors; pipe bends and elbow fittings; tube fittings; mesh; 
bolts; screws; locknuts; nuts; plugs; studs; washers; dowel pins; leaf 
springs; springs; caps; clamps; clips; retainer plates; rings; hinges; 
brackets; mountings; fittings for motor vehicles); iron leaf springs; 
copper components (solid bars for rotors; profiles for rotors; shield 
plates; foil; ferrules); brass standoffs; nickel alloy plates; aluminum 
bonding wire (not alloy); aluminum alloy bonding wire; aluminum alloy 
sheets; aluminum components (foil; tube fittings; spacers; clamps; 
castings; forgings; plugs; hinges; brackets, mountings, fittings, 
bushings for motor vehicles; cooling tubes; wheels); assemblies 
operated by a key or radio wave signal (deck lid/trunk latch; side door 
latch); tubular keys; hood latches not containing any locking 
mechanism; metal door handles not containing lock or latch assemblies; 
brazing rings; electromechanical brake boosters; pumps (displacement; 
electric oil; centrifugal); reservoirs (brake fluid; coolant); 
compressors; vent fans for cooling systems; fans for center console 
controllers; compressor tubes; compressor discharge fittings; hose 
assemblies for air conditioner systems; battery chillers; heat 
exchangers; coolant heaters; assemblies (radiator/condenser; drive 
unit; printed circuit board (for: Converters; inverters; power 
supplies; controllers; distribution); occupant detection sensor; 
seatbelt adjuster; cross member; door switch plate; suspension; axle); 
heat exchanger coil springs; oil filters; housings (for: Air filters; 
flange bearings; motors; drive inverters; visual signaling equipment; 
lighting equipment; controllers; junction boxes; plastic connectors; 
gear boxes); windshield washer reservoir assemblies with motor; 
windshield washer nozzles; pressure relief valves; check valves; 
coolant manifolds; valve bodies; bearings (ball; wheel; tapered 
roller); door components (actuators; rocker panels; dampeners; 
strikers; pockets); AC electric motors exceeding 150kW;

[[Page 36376]]

electric vehicle motors/drive units; bearing end bells; heat sinks for 
drive units; stators and components (laminations; plastic pipes; 
stacks); motor gear cases; rotors and components (endcaps; shafts; 
stacks; aluminum spacers); electrical transformers; DC/DC converters; 
driver inverters; controllers for electric motors (direction; speed 
drive); wireless Qi charging modules; ferrite beads; power inductors; 
inverter heat sinks; metal magnets; 12V batteries; finished lithium-ion 
batteries; finished lithium-ion battery packs for electrically powered 
vehicles; lithium-ion battery cells; battery exhaust ducts; connectors 
(battery; printed circuit board assembly; wire harness; lug); finished 
battery pack enclosures; lithium-ion battery module insulators; 
lithium-ion battery modules; lithium-battery enclosure side rails; 
terminal plates; lithium-ion battery cell top plates; silicon rubber 
vents; lights (back panel; interior; dashboard; side exterior nose; 
license plate); lamps (taillight; trunk and/or luggage compartment; 
position; headlight; fog light; glove compartment; map; ashtray; dome 
light; sealed beam; tungsten halogen); light bars; interior roof 
lighting modules; visual signaling equipment (lamps (turn signal; 
brake; stop; parking; running; reverse/back up); reflectors/markers; 
horns); windshield wipers; defrosters; demisters; microphones for 
hands-free use of phone input to vehicle sound system; loudspeakers 
(single; multiple); microphone and loudspeaker sets; audio amplifiers; 
speaker grills; cameras (with or without monitors); blind spot 
detection radars; vehicle GPS tracking devices; radio receivers (AM/FM; 
satellite); antennas; capacitors (fixed; aluminum; ceramic dielectric 
(single layer; multilayer); plastic); fixed resistors (composition; 
film); thermistors; printed circuits; busbars; fuses; automotive 
signaling flashers; electrical relays; electrical switches; pin 
receptacles; junction boxes; lug connectors; terminal lugs; terminals; 
controller boards; switchboards; contactors; junction box plates; 
sensors (wheel speed; battery); electronic control units; magnet wires 
(aka winding wire); wire harnesses; cables for voltage not exceeding 
1,000V (alone or fitted with connectors); insulated busbars (for: A 
voltage not exceeding 1,000V and fitted with connectors; a voltage 
exceeding 1,000V); insulated grounding wire for a voltage not exceeding 
1,000V (fitted or not fitted with connectors); cable for a voltage 
exceeding 1,000V (alone or fitted with connectors); subframes; body 
panels; bumper components (fascia; air inlet; reinforcement beam); seat 
belts; seat belt webbing; cross members; fenders; hoods; body stamped 
components (door panel; floor panel; electric charger port door; hinge 
door; door skin; windshield molding); visors; torque boxes; cables 
(hood; decklid; door); trunk liners; cargo restraint nets; stoppers 
(brake pedal; accelerator pedal arm); interior door trim/molding; 
dashboard panels; air ducts; glove compartment doors; pillars; trunk 
lids; window lift mechanisms; brake components (brake discs/rotors; 
plates (metal backing; anchor); brake line brackets; shoes; drums; 
hubs; rotors; rotor shields; spindles; brake pads; shims; pistons; 
piston boots; boot rings; calipers); gears and components (boxes; 
carriers; shims); suspension systems and components (coil springs; 
assemblies (link; control arm); camber link bushings; shocks; struts; 
axle damper forks; dampers; damper dust boots; damper spring modules; 
knuckles; ride height sensor drop links); radiator shrouds; radiators; 
steering columns and components (power steering assemblies; 
intermediate shafts; intermediate shaft assemblies); steering wheels; 
steering boxes; safety airbags; accelerator pedals; sound absorbing 
insulation; lenses for automotive headlight lamps, parking lamps, and 
signal lamps; automotive navigation apparatus (electronic control 
units); tire pressure management systems; motor vehicle seats; lumbar 
seat bolsters; and, motor vehicle seat upholstery (duty rate ranges 
from duty free to 9.0%). The request indicates that finished lithium-
ion batteries, finished lithium-ion battery packs for electrically 
powered vehicles, lithium-ion battery cells, lumbar seat bolsters, and 
motor vehicle seat upholstery will be admitted to the zone in 
privileged foreign (PF) status (19 CFR 146.41), thereby precluding 
inverted tariff benefits on such items. The request also indicates that 
certain materials/components are subject to duties under Section 232 of 
the Trade 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 PF status.
    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 27, 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 10, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020-12951 Filed 6-15-20; 8:45 am]
BILLING CODE 3510-DS-P