[Federal Register Volume 72, Number 107 (Tuesday, June 5, 2007)]
[Notices]
[Page 31051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-10782]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 20-2007]


Foreign-Trade Zone 57 -- Charlotte, North Carolina, Expansion of 
Capacity and Manufacturing Authority -- Subzone 57B, Volvo Construction 
Equipment North America, Inc., Skyland, North Carolina, Area

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by Volvo Construction Equipment North America (Volvo CENA), 
operator of Subzone 57B, at the Volvo CENA construction equipment 
manufacturing plant in Skyland, North Carolina, requesting to expand 
capacity as well as the scope of manufacturing activity conducted under 
zone procedures within Subzone 57B. The application was submitted 
pursuant to the provisions of 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 May 30, 2007.
    Subzone 57B (240 employees) was approved by the Board in 2001 for 
the manufacture of construction equipment, specifically wheel loaders 
and articulated haulers (Board Order 1164, 66 FR28890, 5/25/01), and 
authority was expanded on August 21, 2003 to include skid-steer loaders 
and compaction rollers (Board Order 1284, 68 FR 52383, 9/3/03). The 
subzone currently consists of two sites totaling 64 acres located at 
2169 Hendersonville Road in Skyland, North Carolina and 1865 
Hendersonville Road in Asheville, North Carolina.
    The current request involves an expansion of manufacturing capacity 
under FTZ procedures to include an additional 1,000 wheel loaders (up 
to 4,000 units annually) as well as to expand the scope of 
manufacturing activity conducted under FTZ procedures at Subzone 57B to 
include an additional finished product (excavators, up to 4,500 units 
annually). Finished excavators enter the United States duty-free. Volvo 
CENA is also requesting authority to conduct cab fabrication under FTZ 
procedures to produce cabs which will be used in excavator and wheel 
loader manufacturing. Currently the finished cabs are imported from the 
parent company in Sweden. Cabs fabricated at the Skyland site would 
replace those that are currently imported.
    Volvo CENA's application indicates that foreign-sourced materials 
to be used under the expanded scope of authority fall into categories 
which are in the company's current scope of authority. Duty rates on 
the imports sourced from abroad range from duty-free to 12%. Zone 
procedures for the expanded finished products and inputs would exempt 
Volvo CENA from customs duty payments on the foreign components used in 
export production to non-NAFTA countries. Currently, foreign inputs 
account for approximately 65 percent of the value of the excavator. For 
domestic and NAFTA markets, Volvo CENA could choose the duty rate that 
applies to the finished product (duty-free) for the components used in 
production when the finished products are entered for U.S. consumption 
from the zone.
    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 
August 6, 2007. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to August 20, 2007.
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:
U.S. Department of Commerce Export Assistance Center, 521 East Morehead 
St., Suite 435, Charlotte, North Carolina 28202.
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 2111, 1401 Constitution Ave. NW, 
Washington, DC 20230.
For further information, contact Christopher Kemp at [email protected] or (202) 482-0862.

    Dated: May 30, 2007.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E7-10782 Filed 6-4-07; 8:45 am]
BILLING CODE 3510-DS-S