FTZ Manufacturing Authority Application Submitted for Volkswagen

Foreign-Trade Zone 134 - Chattanooga, TN, Application for Manufacturing Authority, Volkswagen Group of America Chattanooga Operations, LLC (Motor Vehicles),Chattanooga, TN

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Chattanooga Chamber Foundation, grantee of FTZ 134, pursuant to Section 400.28(a)(2) of the Board's regulations (15 CFR Part 400), requesting authority on behalf of Volkswagen Group of America Chattanooga Operations, LLC (VGACO) to produce light-duty passenger vehicles under FTZ procedures within FTZ 134. It was formally filed on August 19, 2009.

The VGACO facility (1,187 acres, 2.1 million sq.ft.) is located at 7351 Enterprise South Boulevard within the Enterprise South Industrial Park in Chattanooga (Hamilton County), Tennessee (Site 3). The facility (approximately 2,000 employees), currently under construction, will be used to produce passenger sedans, sport utility vehicles, and minivans for export and the domestic market. At full capacity, the facility will manufacture up to approximately 150,000 vehicles annually. Components to be purchased from abroad (representing about 25% of total material inputs, by value) would include: paint and varnish, zinc coating, sealants, grease/lubricating agents, adhesives, motor oil, transmission fluid, fuel additives, anti-freeze, tubing, flexible rubber tubes/hoses, self-adhesive plastic or polyurethane sheets/foil/film, labels, sealing tape, plastic bags, articles of plastic (incl. handles, grips, knobs, locks, seals, o-rings, caps), articles of rubber (incl. belts, tubes, hoses, dampeners, grommets, plugs, mountings), tires, gaskets, seals, floor mats, leather bags, man-made fiber and cotton bags/cases (HTSUS categories 4202.12.8030, 4202.12.8070, 5608.19, 6305.20; will be admitted to the zone under privileged foreign status (19 CFR Sec. 146.41) or domestic (duty paid) status (19 CFR Sec. 146.43)), leather articles, wood boxes, printed materials, nets, carpet sets, safety glass, glass lenses, mirrors, car covers, heat deflectors, tube/pipe fittings, pins, hangers, body parts, trim parts, articles of base metals, doors, fasteners, cotter pins, helical springs, clamps, articles of aluminum, hand tools, catalytic converters, locks and keys, spark-ignition and diesel engines, engine parts, pumps, compressors, air conditioner components, turbochargers, cooling boxes, filters, valves, parts of steering systems, steering wheels, hubs and flanges, chain, universal joints, clutches, half/drive shafts, transmissions and parts thereof, torque converters, differentials, bearings and parts thereof, compasses, thermostats, motors, batteries, ignition parts, electrical parts, lighting equipment, horns, windshield wipers, electric heaters, cameras, audio/video components, speakers, antennas, wiring harnesses, seats, seat belts, airbag modules/inflators, brake components, wheels, wheel locks, lug nuts, lug wrenches, suspension components, radiators, heater cores, exhaust systems, hinges, pneumatic dampeners, speedometers, tachometers, voltmeters, flow meters, anti-theft systems, regulators/controllers, sensors, resistors, relays, starters, electrical components, cigarette lighters, clocks, spark plugs, and switches (duty rate range: free 20%). The application also requests authority to include a broad range of inputs and finished motor vehicles that VGACO may produce under FTZ procedures in the future. New major activity involving these inputs/products would require review by the FTZ Board.

FTZ procedures could exempt VGACO from customs duty payments on foreign components used in export production (estimated to be 20% of plant shipments). On its domestic sales, VGACO would be able to choose the duty rate that applies to finished passenger vehicles (2.5%) for the foreign inputs noted above that have higher rates. Certain logistical/supply chain management savings would also be realized through FTZ procedures. Customs duties also could possibly be deferred or reduced on foreign status production equipment. The application indicates that the savings from FTZ procedures would help improve the facility's international competitiveness.

In accordance with the Board's regulations, Pierre Duy of the FTZ Staff is designated examiner to evaluate and analyze the facts and information presented in the application and case record and to report findings and recommendations to the Board.

Public comment is invited from interested parties. Submissions (original and 3 copies) shall be addressed to the Board's Executive Secretary at the following address: Office of the Executive Secretary, Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 20230-0002. The closing period for receipt of comments is October 26, 2009. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to November 10, 2009.

FTZ #8 Expansion

Expansion of Foreign-Trade Zone 8, Toledo, Ohio

Pursuant to its authority under the Foreign-Trade Zones (FTZ) Act of June 18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board (the Board) adopts the following Order:

Whereas, the Toledo-Lucas County Port Authority, grantee of Foreign-Trade Zone No. 8, submitted an application to the Board for authority to expand Site 1 at the Port of Toledo Complex, within the Toledo/Sandusky Customs and Border Protection port of entry (FTZ Docket 64-2008, filed 12/2/2008);

Whereas, notice inviting public comment was given in the Federal Register (73 FR 78289, 12/22/2008) and the application has been processed pursuant to the FTZ Act and the Board's regulations; and,

Whereas, the Board adopts the findings and recommendations of the examiner's report, and finds that the requirements of the FTZ Act and the Board's regulations are satisfied, and that the proposal is in the public interest;

Now, therefore, the Board hereby orders:

The application to expand FTZ 8 - Site 1 is approved, subject to the Act and the Board's regulations, including Section 400.28.

FTZ Application for Reorganization Under ASF

Foreign-Trade Zone 54--Clinton County, NY; Application for Reorganization Under Alternative Site Framework

An application has been submitted to the Foreign-Trade Zones (FTZ) Board (the Board) by Clinton County, New York, grantee of FTZ 54, requesting authority to reorganize the zone under the alternative site framework (ASF) adopted by the FTZ Board (74 FR 1170, 01/12/09; correction 74 FR 3987, 01/22/09). The ASF is an option for grantees for the establishment or reorganization of general-purpose zones and can permit significantly greater flexibility in the designation of new ``usage- driven'' FTZ sites for operators/users located within a grantee's ``service area'' in the context of the Board's standard 2,000-acre activation limit for a general-purpose zone project. The application was submitted pursuant to the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR Part 400). It was formally filed on July 31, 2009.

The grantee's proposed service area under the ASF would be Clinton County, New York. If approved, the grantee would be able to serve sites throughout the service area based on companies' needs for FTZ designation. The proposed service area is adjacent to the Champlain Customs and Border Protection port of entry.

FTZ 54 was approved on February 14, 1980 (Board Order 153, 45 FR 12469, 02/26/80), and expanded on: September 23, 1982 (Board Order 196, 47 FR 43012, 09/30/82); May 29, 1996 (Board Order 829, 61 FR 28840, 06/06/96); May 29, 2001 (Board Order 1169, 66 FR 31612, 06/12/01); and November 16, 2001 (Board Order 1199, 66 FR 59235, 11/27/01). The applicant is requesting to include its current sites in the reorganized zone as ``magnet'' sites. The applicant proposes that Site 4 be exempt from ``sunset'' time limits that otherwise apply to sites under the ASF. No usage-driven sites are being proposed at this time. Because the ASF only pertains to establishing or reorganizing a general-purpose zone, the application would have no impact on FTZ 54's authorized subzones.

In accordance with the Board's regulations, Kathleen Boyce of the FTZ Staff is designated examiner to evaluate and analyze the facts and information presented in the application and case record and to report findings and recommendations to the Board.

Public comment is invited from interested parties. Submissions (original and 3 copies) shall be addressed to the Board's Executive Secretary at the address below. The closing period for their receipt is October 5, 2009. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period (to October 20, 2009).

FTZ Notice of Public Hearing and Comment Period

Foreign-Trade Zone 82, Application for Subzone Authority, ThyssenKrupp Steel and Stainless USA, LLC, Notice of Public Hearing and Reopening of Comment Period

A public hearing will be held on the application for subzone authority at the ThyssenKrupp Steel and Stainless USA, LLC (ThyssenKrupp) facility in Calvert, Alabama (73 FR 58535-58536, 10/7/08). The Commerce examiner will hold the public hearing on September 10, 2009 at 1:00 p.m., at the Department of Commerce, Room 4830, 1401 Constitution Ave., NW, Washington, DC 20230. Interested parties should indicate their intent to participate in the hearing and provide a summary of their remarks no later than September 4, 2009.

The comment period for the case referenced above is being reopened through September 25, 2009, to allow interested parties additional time in which to comment. Rebuttal comments may be submitted during the subsequent 15-day period, until October 13, 2009. Submissions (original and one electronic copy) shall be addressed to the Board's Executive Secretary at: Foreign-Trade Zones Board, U.S. Department of Commerce, Room 2111, 1401 Constitution Ave. NW, Washington, DC 20230.