[Federal Register Volume 74, Number 136 (Friday, July 17, 2009)]
[Notices]
[Page 34714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17075]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

(Docket T-1-2009)


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

    An application has been submitted to the Executive Secretary of the 
Foreign-Trade Zones Board (the Board) by the Chattanooga Chamber 
Foundation, grantee of FTZ 134, requesting temporary/interim 
manufacturing (T/IM) authority within FTZ 134 at the Volkswagen Group 
of America Chattanooga Operations, LLC (VGACO) facility in Chattanooga, 
Tennessee. The application was filed on July 10, 2009.
    The VGACO facility (approx. 2,000 employees, 1,187 acres, 2.1 
million sq.ft., 150,000 unit capacity) is located at 7351 Enterprise 
South Boulevard within the Enterprise South Industrial Park in 
Chattanooga (Hamilton County), Tennessee (Site 3). Under T/IM 
procedures, the company has requested authority to produce light-duty 
passenger vehicles (sedans, sport utility vehicles, minivans) (HTSUS 
8703.23, 8703.24, 2.5%). Foreign components that would be used in 
production (representing about 25% of total material inputs) include: 
plastic tubes/pipes/hoses (3917.31, 3917.40), plastic sheets/strips/
plates (3919.90, 3921.90), rubber tubes/hoses (4009.11), tires 
(4011.20), gaskets/washers/o-rings (4016.93, 4016.99), safety glass 
(7007.11, 7007.21), mirrors (7009.10), tube fittings (7307.22, 
7307.99), fasteners (7318.14), locks/keys (8301.20, 8301.40), engines 
(8407.34), engine parts (8409.91), pumps (8413.30), valves (8481.80), 
and bumpers (8708.10) (duty rates: free 6.5%). T/IM authority could be 
granted for a period of up to two years.
    FTZ procedures could exempt VGACO from customs duty payments on the 
foreign components used in export production. The company anticipates 
that some 20 percent of the plant's shipments will be exported. 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. 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.
    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 August 17, 2009.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
the address listed above, and in the ``Reading Room'' section of the 
Board's website, which is accessible via www.trade.gov/ftz. For further 
information, contact Pierre Duy at [email protected] or (202) 
482-1378.

    Dated: July 10, 2009.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E9-17075 Filed 7-16-09; 8:45 am]
BILLING CODE 3510-DS-S