Foreign-Trade Zone (FTZ) 98--Birmingham, Alabama; Notification of Proposed Production Activity, Mercedes-Benz U.S. International, Inc., (Electric Motor Vehicles and Battery Assemblies), Vance and Woodstock, Alabama

Topics:  Mercedes-Benz

Andrew McGilvray
Department of Commerce
17 June 2021

[Federal Register Volume 86, Number 115 (Thursday, June 17, 2021)]
[Notices]
[Page 32247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12803]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-46-2021]


Foreign-Trade Zone (FTZ) 98--Birmingham, Alabama; Notification of 
Proposed Production Activity, Mercedes-Benz U.S. International, Inc., 
(Electric Motor Vehicles and Battery Assemblies), Vance and Woodstock, 
Alabama

    Mercedes-Benz U.S. International, Inc. (MBUSI) submitted a 
notification of proposed production activity to the FTZ Board for its 
facilities in Vance and Woodstock, Alabama. The notification conforming 
to the requirements of the regulations of the FTZ Board (15 CFR 400.22) 
was received on June 10, 2021.
    MBUSI already has authority to produce passenger motor vehicles 
within Subzone 98A. The current request would add two finished products 
and various 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 MBUSI 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, MBUSI 
would be able to choose the duty rates during customs entry procedures 
that apply to electric passenger motor vehicles and advanced lithium-
ion battery assemblies (duty rate ranges from 2.5% to 3.4%). MBUSI 
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: Sealing 
agents; thermal compounds; information labels; elastomer-molded seals; 
plastic components (cable straps; insulating plates; nuts; spacers; 
rivets; insulation); steel U-bolts; screws (steel; threaded; hex; 
rounded head; thread grooving with collars; rounded head); hex bolts; 
assemblies (washer; battery ventilation); threaded nuts; clip-type 
nuts; aluminum components (flange gaskets; panel substructures); 
lithium-ion cell blocks; lithium-ion batteries; battery housings; 
rupture disks; series resistors; high voltage battery fuse links; 
battery fuse links; pyrotechnical switches; contactors; electrical 
relays; carrier plates; high voltage plugs; junction boxes; busbar 
controllers; busbars; battery management units; battery cell monitor 
units; control unit DC/DC-converters; electrical wiring harnesses; 
battery substructure covers; housing covers; moisture wicking non-
electric air driers; cable ducts; coolant lines; electrical wiring 
harnesses with cable ducts; steel service cover plates for battery 
access; and, battery sensors (duty rate ranges from duty-free to 8.5%). 
The request 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 
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 27, 2021.
    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 14, 2021.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2021-12803 Filed 6-16-21; 8:45 am]
BILLING CODE 3510-DS-P