Foreign-Trade Zone (FTZ) 75--Phoenix, Arizona, Notification of Proposed Production Activity, Nikola Corporation, (Electric Road Tractors and Motor Vehicles), Coolidge, Arizona

Topics:  Nikola

Andrew McGilvray
Department of Commerce
19 July 2021

[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Notices]
[Pages 38008-38009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15267]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-54-2021]


Foreign-Trade Zone (FTZ) 75--Phoenix, Arizona, Notification of 
Proposed Production Activity, Nikola Corporation, (Electric Road 
Tractors and Motor Vehicles), Coolidge, Arizona

    Nikola Corporation (Nikola) submitted a notification of proposed 
production activity to the FTZ Board for its facility in Coolidge, 
Arizona. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on July 12, 
2021.
    The Nikola facility is located within Subzone 75M. The facility 
will be used for production of battery-electric and hydrogen-electric 
vehicles. Pursuant to 15 CFR 400.14(b), FTZ activity 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 Nikola 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, Nikola would be able to choose the duty rates 
during customs entry procedures that apply to electric road tractors 
for semi-trailers, and electric motor vehicles for the transport of 
goods (duty rate ranges from 4.0 to 25.0%). Nikola 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: Polyester-
based paints; acrylic or vinyl polymer-based paints and varnishes; 
prepared water pigments; silicone and hydrophilic sealants; pastes 
(epoxide resin-based; adhesive); instant glues; coolants; thermally 
conductive greases and pastes; plastic baffle inserts; tubes, pipes, 
and hoses (rigid ethylene; rigid propylene; rigid plastic; flexible 
plastic; not reinforced plastic without fittings; reinforced plastic; 
not reinforced vulcanized rubber with or without fittings; rubber with 
fittings reinforced with metal, or textile materials, or materials 
other than metal or textiles; rubber without fittings reinforced with 
textile materials, or materials other than metal or textiles); plastic 
components (brake hose fittings; fittings; lids; caps; plugs; stoppers; 
plates; bushings; spacers; buttons; clips; ties; gaskets; seals; 
washers; O-rings; handles; knobs; shrouds; panels; guards; housings; 
insulators; moldings; protectors; mats; trays; pads; cable supports; 
brackets; fasteners; covers; capacitors; gap pads; bumpers; bumper 
covers, end caps, wings, panels, air inlets, grills, fascia, sides, and 
lower trim); electrical tape; self-adhesive components (strips; tape; 
rolls of plastic; vitrifiable transfer labels; labels); propylene 
sheets, plates, foils, strips, and film; cellular polyurethane plates, 
sheets, and film; synthetic rubber in plates, strips, or sheets; 
vulcanized rubber components (endless transmission belts; transmission 
belts; seals; insulators; O-rings; washers; gaskets; grommets; rings; 
bellows; dampers; diaphragms; boots; clips; cups; mats or cushions; 
valves; bonnets; covers; insulation; wiper refills; shock absorbers; 
spring isolators; handles; mounts; bushings; caps; plugs; knobs; 
stoppers); tires (pneumatic or retreaded pneumatic for use on trucks; 
solid or cushion); rubber inner tubes; cellular rubber pads and seals; 
rubber floor mats; cork gaskets and packing; not printed paper or 
paperboard labels; coated paper or paperboard gaskets and packing; 
manuals (operational; service; printed); tufted carpet; canvas rain 
guards; gaskets (graphite; carbon; combined metal and paper, metal and 
rubber, and metal and plastic); safety glass (tempered; laminated); 
mirrors (rear view; framed glass); glass lenses for headlamps; glass 
fiber engine insulation; glass fiber insulators; assemblies 
(insulation; lock; hinge; caster; oil pump drive spindle; stators or 
rotor; hose; relief and safety valve; solenoid valve; bearing; flange; 
drive unit; gear; pulley; clutch; yoke; armature; holder; charger; 
converter; rectifier; magnet; lead-acid storage battery; turn signal 
lamp; heater; buzzer; flasher unit; horn; display; headlamp; LED 
headlamp; regulator; brush; crossmember; brake; control arm; power 
steering; steering shaft; thermostat switch; electrical pressure 
sensor; airflow meter; indicator; speed sensor; hour meter; meter 
housing; thermostat); wire (zinc-coated or plated; aluminum alloy; 
magnet); steel components (sheet; mesh; retainer plates; bumper fold-up 
steps and hooks; bumper beams, cross members, bridges, and 
reinforcements); iron or steel components (tubes; pipes; fittings with 
mechanical, push-on, or flanged joints; pipe or tube adapters, joints, 
or unions; pipe or tube connectors, nipples, and connector assemblies; 
threaded adapters, connectors, and connector assemblies; cables; roller 
chain; chain; master chain links; leaf chain; lifting chains; threaded 
self-tapping screws; machine screws; screws; bolts; threaded bolts or 
studs; U-bolts; threaded nuts; threaded plugs; spring or lock washers; 
washers; rivets; collars; split pins; snap rings; cotters; dowels; 
dowel pins; plug and pin assemblies; woodruff keys; rings; leaf 
springs; helical springs; springs; links; bands; adjuster bars; caps; 
clamps; clevis pins; connectors; rods and rod assemblies; bushings; 
grommets; cable guides; clips; plugs; hose bands; retainer plates); 
iron or nonalloy steel pipe or tube flanges and flange assemblies; 
iron, alloy, or nonalloy steel components (threaded couplings or 
elbows; adapters, connectors, nipples, and connector assemblies); 
copper components (profiles; bars; rods; plates; foil; threaded tube 
and pipe fittings; washers; ferrules; gaskets; seals; plugs; pin 
receptacles; springs; insulated cables or wires); brass components 
(standoffs; clamps); nickel plates; aluminum components (bars; 
profiles; rods; wire; plates; sheets; tubes; pipes; tube and pipe 
fittings; spacers; plugs; connectors; clips; clamps; pins; forgings; 
capacitors); base metal locks; lock

[[Page 38009]]

cylinders and keys; locks; ignition keys; hinges; swivel casters; iron, 
steel, aluminum, or zinc components (hinges; latches; handles; anchors; 
backing plates; brackets; mountings; fittings); base metal plates; 
pumps (lubricating or cooling centrifugal; reciprocating positive 
displacement; vacuum); electromechanical brake boosters; oil pump 
housings; brake fluid reservoirs; fans (cooling; vent); compressors and 
related components (housings; discharge fittings; tubes); breathers; 
mufflers; fan blades; fan spacers; stators; rotors; air conditioners 
and related components (motors; fans; valve expansions; condensers); 
battery components (chillers; isolators; exhaust ducts; sensors); 
coolant heaters; heat exchangers; heat exchanger coil springs; cooling 
tubes; filters (air; gas separation); weighing machinery and sensors; 
fire extinguishers; windshield washer components (reservoirs with 
motors; nozzles); hoists; winches; jacks; external drive units; 
hydraulic accumulators; valves (intake; exhaust; oleohydraulic or 
pneumatic transmission; oil check; pressure relief; hand operated 
control); dampeners and damper dust boots; valve bodies; coolant 
manifolds; bearings (ball; roller lift ball; sprocket and flange; 
wheel; single row spherical roller; needle roller; cylindrical roller; 
side roller; main); mast side rollers; tapered roller bearings, cones, 
and cups; bearing components (balls; needles; cones; cups); camper link 
bushings; sprockets; gears, gear pinions, and gearing; pulleys; 
clutches; universal joints; yokes; pinion spacers; shims, sleeves, and 
sprockets; plugs (vent; drain; oil; end); covers for transmission and 
gearbox components; mechanical seals; motors (electric under 18.65W; 
AC/DC; DC to an output of 750W; DC of an output from 750W to 75kW; AC 
multi-phase); window lift mechanisms; armature; motor brush, front, and 
bearing covers; holders; electric motor carbon brush holders; motor 
sensor housings; spring brushes; ground terminals; transformers; 
inverter unit drives; power supplies, inverters, and rectifiers; speed 
drive controllers; voltage components (regulators; current regulators; 
advancers; limiters; overload protectors); power inductors; ferrite 
beads; inverter heat sinks; magnets; sensors (magnet input; occupant 
detection; pressure; temperature; water temperature; lock or brake; 
meter; oxygen; air suspension); electromagnetic couplings, clutches, 
and brakes; lead-acid storage batteries; lithium-ion batteries and 
related components (packs; cells; side rails; module insulators); lead 
acid battery cells; distribution control systems; modules (electrical 
ignition; damper spring; airbag); condensers; vehicle lighting and 
headlamps; vehicle visual signaling lighting; vehicle horns; radar 
detectors; windshield wipers; defrosters and demisters; wiper arms and 
blades; light bulbs; lenses and lens assemblies for automotive 
signaling or lighting equipment; water and immersion heaters; 
microphones; loudspeakers (single; multiple); headphones and earphones; 
audio amplifiers; speaker grills; park assist and rearview cameras; 
navigational equipment; GPS tracking devices; radio broadcast 
receivers; antennae; combination meters and meter panels; indicator 
panels incorporating LCDs or LEDs; capacitors (fixed; ceramic single 
layer dielectric; ceramic multi-layer dielectric); resistors (fixed 
film or composition; fixed; variable); potentiometers; rheostats; 
thermistors; circuit boards (printed; populated); switches (isolating 
or make-and-break; push button; knife; rotary; snap-action; slide; 
limit; electronic); lighting arresters and surge suppressors; 
connectors (sensor; electrical; battery or charger); connector 
housings; snap plug receptacles; male and female bullet terminals; 
fuses; contactors and relays (for a voltage up to 60V; for a voltage 
over 60V); motor starters; lamp sockets; bus bars; electrical panel 
insulators; terminal blocks, lugs, and plates; junction boxes; boards, 
panels, modules, and controllers and control assemblies; switchboards; 
fuse boxes; contact tips and plates; contactor bases; fuse holders; 
headlamps; turn indicator, rear turn, reverse, stop, and tail lamps; 
LED headlamps; diodes; thyristors; LED diodes; transistors; speed 
controls and speed sensors; dashboard displays; equalizers; wiring 
harnesses and ignition wiring sets; electrical cables with connectors; 
brushes; chassis with engines; chassis with engines and cabs; vehicle 
cabs and chassis; seatbelts; air ducts; fenders and rocker panels; 
glove compartment doors; hoods; interior door trim and moldings; 
plastic foam separators and spacers; silicon rubber and plastic vents; 
seatbelt adjusters; brake components (calipers; cantilevers; discs; 
rotors; drums; pads; rotor shields; spacers); mounted brake linings; 
motor gear cases and boxes; gear shims; axles with differentials; road 
wheels for motor vehicle use; ball joints; struts; suspension systems; 
axle damper forks; spindles; shock absorbers; suspension knuckles; ride 
height sensor drop links; radiators; radiator shrouds; exhaust 
components (systems; manifolds; silencers); intake systems; clutches; 
steering components (columns; wheels; boxes; knuckles; gear housing 
levers); drop links and stabilizer bars; safety airbags; pedals 
(accelerator; foot); thermometers; water gauges; sensor covers; tube 
guides for measurement instruments; revolution counters; hour meters; 
speedometers; tachometers; meter housings; pressure switches 
(manostats); motor vehicle seats; upholstered metal frame seats; seat 
backs, cushions, frames, and seating; and, plastic seat foam (duty rate 
ranges from duty-free to 9.0%). The request indicates that the 
following components will be admitted to the zone in privileged foreign 
(PF) status (19 CFR 146.41), thereby precluding inverted tariff 
benefits on such items: Tufted carpet; canvas rain guards; motor 
vehicle seats; upholstered metal frame seats; and, seatbacks, cushions, 
frames and seating. The request indicates that new pneumatic tires, 
lock washers, aluminum extrusions, and tapered roller bearings and 
parts 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 PF status. 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 August 30, 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: July 13, 2021.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2021-15267 Filed 7-16-21; 8:45 am]
BILLING CODE 3510-DS-P