[Federal Register Volume 74, Number 236 (Thursday, December 10, 2009)]
[Notices]
[Page 65515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-29472]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 55-2009]


Foreign-Trade Zone 74--Baltimore, MD: Application for Subzone 
Michelin North America, Inc. (Tire Distribution and Wheel Assembly); 
Elkton, MD

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the City of Baltimore, grantee of FTZ 74, requesting 
special-purpose subzone status for the distribution facility of 
Michelin North America, Inc. (MNA), located in Elkton, Maryland. 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 December 3, 2009.
    MNA's facility (130 employees, approximately 71 acres/756,600 
enclosed square feet) is located at 515 Fletchwood Road, Elkton, 
Maryland. The facility is primarily used for the storage and 
distribution of tires and tire accessories (duty rates range from duty-
free to 4.0%); however, the applicant is also requesting manufacturing 
authority to perform wheel assembly at the proposed subzone.
    On its distribution activity, FTZ procedures could exempt MNA from 
customs duty payments on the foreign products that are exported (3 to 
7% of shipments). On its domestic sales, the company would be able to 
defer duty payments until merchandise is shipped from the facility and 
entered for consumption. Certain tires from China are temporarily 
subject to additional duties imposed in a Section 421 safeguard case; 
such tires will be admitted to the proposed subzone under privileged 
foreign status (19 CFR 146.41) or domestic (duty paid) status (19 CFR 
146.43).
    As noted above, the applicant is also requesting to perform wheel 
assembly (up to 100,000 units annually) using domestic and foreign 
components on behalf of auto manufacturer clients. Foreign-sourced 
components include tires (HTSUS 4011.10, 4011.20, 4011.61, 4011.62, 
4011.63, 4011.92, 4011.93, 4011.94, 4011.99, duty-free to 4.0%), wheel 
rims (HTSUS 8708.70, duty-free to 2.5%), flaps (HTSUS 4012.90, duty-
free to 4.2%), valves (HTSUS 8481.80, 2% to 5.6%), tubes (HTSUS 
4013.10, 3.7%), gaskets (HTSUS 4016.93, 2.5%), sensors (HTSUS 8525.10, 
duty-free), and nuts (HTSUS 7318.16, duty-free).
    FTZ procedures could exempt MNA from customs duty payments on the 
foreign components used in production for export to non-NAFTA 
countries. On shipments for U.S. consumption and to NAFTA markets, MNA 
could elect the wheel assembly duty rate (generally dutiable as an auto 
part--2.5%) for the foreign components (mostly tires, dutiable at 4%) 
listed above. The auto part duty rate (2.5%) would apply if the wheel 
assemblies are shipped via zone-to-zone transfer to U.S. motor vehicle 
assembly plants with subzone status.
    FTZ designation would further allow Michelin to realize logistical 
benefits through the use of certain customs procedures and duty savings 
on scrap and waste. The request indicates that the savings from FTZ 
procedures would help improve the facility's international 
competitiveness.
    In accordance with the Board's regulations, Diane Finver 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 
February 8, 2010. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to February 23, 2010.
    A copy of the application will be available for public inspection 
at the Office of the Executive Secretary, Foreign-Trade Zones Board, 
Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW., 
Washington, DC 20230-0002, and in the ``Reading Room'' section of the 
Board's Web site, which is accessible via http://www.trade.gov/ftz.
    For further information, contact Diane Finver at 
[email protected] or (202) 482-1367.

    Dated: December 3, 2009.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E9-29472 Filed 12-9-09; 8:45 am]
BILLING CODE 3510-DS-P