[Federal Register Volume 74, Number 165 (Thursday, August 27, 2009)]
[Notices]
[Pages 43670-43671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-20710]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

Docket 35-2009


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,

[[Page 43671]]

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.
    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: August 20, 2009.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E9-20710 Filed 8-26-09; 8:45 am]
BILLING CODE 3510-DS-S