Foreign-Trade Zone (FTZ) 38-Spartanburg County, South Carolina; Notification of Proposed Production Activity; ZF Chassis Systems Duncan, LLC, (Automotive Suspension Systems), Duncan, South Carolina

Federal Register, Volume 84 Issue 146 (Tuesday, July 30, 2019)
[Federal Register Volume 84, Number 146 (Tuesday, July 30, 2019)]
[Page 36886]
From the Federal Register Online via the Government Publishing Office []
[FR Doc No: 2019-16158]
[[Page 36886]]
Foreign-Trade Zones Board
Foreign-Trade Zone (FTZ) 38--Spartanburg County, South Carolina;
Notification of Proposed Production Activity; ZF Chassis Systems
Duncan, LLC, (Automotive Suspension Systems), Duncan, South Carolina
    ZF Chassis Systems Duncan, LLC (ZF Chassis) submitted a
notification of proposed production activity to the FTZ Board for its
facility in Duncan, South Carolina. The notification conforming to the
requirements of the regulations of the FTZ Board (15 CFR 400.22) was
received on July 23, 2019.
    ZF Chassis already has authority to produce automotive suspension
systems within FTZ 38. The current request would add foreign status
materials/components to the scope of authority. Pursuant to 15 CFR
400.14(b), additional FTZ authority would be limited to the specific
foreign-status materials/components described in the submitted
notification (as described below) and subsequently authorized by the
FTZ Board.
    Production under FTZ procedures could exempt ZF Chassis from
customs duty payments on the foreign-status materials/components used
in export production. On its domestic sales, for the foreign-status
materials/components noted below, ZF Chassis would be able to choose
the duty rates during customs entry procedures that apply to automotive
suspension systems (2.5%). ZF Chassis would be able to avoid duty on
foreign-status components which become scrap/waste. Customs duties also
could possibly be deferred or reduced on foreign-status production
    The materials/components sourced from abroad include: Plastic
fittings for tubes, pipes, and hoses; plastic mounting clips; paper and
paperboard labels; iron or steel self-tapping screws; steel threaded
nuts; steel non-threaded clips; copper non-threaded screws and bolts;
copper threaded nuts and plugs; vacuum pipes; steel check valves; wheel
speed sensors/ABS sensors; insulated wiring sets; plastic cable trays;
steel front axle carriers; drive axles with differentials; steering
boxes; steering columns; steering gears; steering wheels; angle joint
assemblies for front axles; and, level sensors (duty rate ranges from
duty-free to 8.6%). The request indicates that certain materials/
components are subject to special duties under Section 301 of the Trade
Act of 1974 (Section 301), depending on the country of origin. The
applicable Section 301 decisions require subject merchandise to be
admitted to FTZs in privileged foreign status (19 CFR 146.41).
    Public comment is invited from interested parties. Submissions
shall be addressed to the Board's Executive Secretary and sent to:
[email protected]. The closing period for their receipt is September 9,
    A copy of the notification will be available for public inspection
in the ``Reading Room'' section of the Board's website, which is
accessible via
    For further information, contact Juanita Chen at
[email protected] or 202-482-1378.
    Dated: July 24, 2019.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2019-16158 Filed 7-29-19; 8:45 am]