Foreign-Trade Zone (FTZ) 75-Phoenix, Arizona; Notification of Proposed Production Activity; Lucid Motors USA, Inc;. (Electric Automobiles and Subassemblies); Casa Grande and Tempe, Arizona

Citation85 FR 36375
Record Number2020-12951
Published date16 June 2020
SectionNotices
CourtForeign-trade Zones Board
Federal Register, Volume 85 Issue 116 (Tuesday, June 16, 2020)
[Federal Register Volume 85, Number 116 (Tuesday, June 16, 2020)]
                [Notices]
                [Pages 36375-36376]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-12951]
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                DEPARTMENT OF COMMERCE
                Foreign-Trade Zones Board
                [B-37-2020]
                Foreign-Trade Zone (FTZ) 75--Phoenix, Arizona; Notification of
                Proposed Production Activity; Lucid Motors USA, Inc;. (Electric
                Automobiles and Subassemblies); Casa Grande and Tempe, Arizona
                 Lucid Motors USA, Inc. (Lucid Motors) submitted a notification of
                proposed production activity to the FTZ Board for its facilities in
                Casa Grande and Tempe, Arizona. The notification conforming to the
                requirements of the regulations of the FTZ Board (15 CFR 400.22) was
                received on June 2, 2020.
                 The Lucid Motors facilities are located within Subzone 75N. The
                facilities will be used for the production of electric passenger
                automobiles and subassemblies. Pursuant to 15 CFR 400.14(b), FTZ
                activity would be limited to the specific foreign-status materials and
                components and specific finished products described in the submitted
                notification (as described below) and subsequently authorized by the
                FTZ Board.
                 Production under FTZ procedures could exempt Lucid Motors from
                customs duty payments on the foreign-status components used in export
                production. On its domestic sales, for the foreign-status materials/
                components noted below, Lucid Motors would be able to choose the duty
                rates during customs entry procedures that apply to electric passenger
                vehicles (for nine or less people), lithium-ion battery packs for
                electric vehicles, drive inverters, AC motors, DC/DC converters, and
                differentials (duty rate ranges from duty-free to 3.4%). Lucid Motors
                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 equipment.
                 The components and materials sourced from abroad include: Rigid
                plastic tubing (ethylene; propylene; vinyl chloride); plastic tubes
                (having a minimum burst pressure of 27.6 MPa; not reinforced, without
                fittings; not reinforced, with fittings; reinforced); plastic
                components (fittings for hoses; gap pads; caps and closures; plugs;
                door handles; trays; baffle inserts; brackets; cable supports; cable
                ties; clips; fasteners; gaskets; mounts and fittings; O-rings; seals;
                washers; converter covers; vents; brake hoses; seat organizers);
                electrical tape; self-adhesive plastic components (sheet in rolls;
                tape; film; labels; strips); separators (polyethylene; polypropylene;
                air particle); butadiene-styrene-alkyl-methacrylate copolymer; styrene-
                butadiene rubber; rubber hoses (not reinforced, with or without
                fittings; reinforced, with or without fittings); radial tires; rubber
                components (O-rings; rings; seals; gaskets; washers; bumpers; grommets;
                bushings); natural rubber spring isolators; paper labels; carpet;
                passenger window tempered safety glass; windshields of laminated safety
                glass (not framed and not fitted; cut-to-size, framed to fit, framed
                with ceramic frit coating); nickel plated steel sheet; steel components
                (pipes for rotors; pipe bends and elbow fittings; tube fittings; mesh;
                bolts; screws; locknuts; nuts; plugs; studs; washers; dowel pins; leaf
                springs; springs; caps; clamps; clips; retainer plates; rings; hinges;
                brackets; mountings; fittings for motor vehicles); iron leaf springs;
                copper components (solid bars for rotors; profiles for rotors; shield
                plates; foil; ferrules); brass standoffs; nickel alloy plates; aluminum
                bonding wire (not alloy); aluminum alloy bonding wire; aluminum alloy
                sheets; aluminum components (foil; tube fittings; spacers; clamps;
                castings; forgings; plugs; hinges; brackets, mountings, fittings,
                bushings for motor vehicles; cooling tubes; wheels); assemblies
                operated by a key or radio wave signal (deck lid/trunk latch; side door
                latch); tubular keys; hood latches not containing any locking
                mechanism; metal door handles not containing lock or latch assemblies;
                brazing rings; electromechanical brake boosters; pumps (displacement;
                electric oil; centrifugal); reservoirs (brake fluid; coolant);
                compressors; vent fans for cooling systems; fans for center console
                controllers; compressor tubes; compressor discharge fittings; hose
                assemblies for air conditioner systems; battery chillers; heat
                exchangers; coolant heaters; assemblies (radiator/condenser; drive
                unit; printed circuit board (for: Converters; inverters; power
                supplies; controllers; distribution); occupant detection sensor;
                seatbelt adjuster; cross member; door switch plate; suspension; axle);
                heat exchanger coil springs; oil filters; housings (for: Air filters;
                flange bearings; motors; drive inverters; visual signaling equipment;
                lighting equipment; controllers; junction boxes; plastic connectors;
                gear boxes); windshield washer reservoir assemblies with motor;
                windshield washer nozzles; pressure relief valves; check valves;
                coolant manifolds; valve bodies; bearings (ball; wheel; tapered
                roller); door components (actuators; rocker panels; dampeners;
                strikers; pockets); AC electric motors exceeding 150kW;
                [[Page 36376]]
                electric vehicle motors/drive units; bearing end bells; heat sinks for
                drive units; stators and components (laminations; plastic pipes;
                stacks); motor gear cases; rotors and components (endcaps; shafts;
                stacks; aluminum spacers); electrical transformers; DC/DC converters;
                driver inverters; controllers for electric motors (direction; speed
                drive); wireless Qi charging modules; ferrite beads; power inductors;
                inverter heat sinks; metal magnets; 12V batteries; finished lithium-ion
                batteries; finished lithium-ion battery packs for electrically powered
                vehicles; lithium-ion battery cells; battery exhaust ducts; connectors
                (battery; printed circuit board assembly; wire harness; lug); finished
                battery pack enclosures; lithium-ion battery module insulators;
                lithium-ion battery modules; lithium-battery enclosure side rails;
                terminal plates; lithium-ion battery cell top plates; silicon rubber
                vents; lights (back panel; interior; dashboard; side exterior nose;
                license plate); lamps (taillight; trunk and/or luggage compartment;
                position; headlight; fog light; glove compartment; map; ashtray; dome
                light; sealed beam; tungsten halogen); light bars; interior roof
                lighting modules; visual signaling equipment (lamps (turn signal;
                brake; stop; parking; running; reverse/back up); reflectors/markers;
                horns); windshield wipers; defrosters; demisters; microphones for
                hands-free use of phone input to vehicle sound system; loudspeakers
                (single; multiple); microphone and loudspeaker sets; audio amplifiers;
                speaker grills; cameras (with or without monitors); blind spot
                detection radars; vehicle GPS tracking devices; radio receivers (AM/FM;
                satellite); antennas; capacitors (fixed; aluminum; ceramic dielectric
                (single layer; multilayer); plastic); fixed resistors (composition;
                film); thermistors; printed circuits; busbars; fuses; automotive
                signaling flashers; electrical relays; electrical switches; pin
                receptacles; junction boxes; lug connectors; terminal lugs; terminals;
                controller boards; switchboards; contactors; junction box plates;
                sensors (wheel speed; battery); electronic control units; magnet wires
                (aka winding wire); wire harnesses; cables for voltage not exceeding
                1,000V (alone or fitted with connectors); insulated busbars (for: A
                voltage not exceeding 1,000V and fitted with connectors; a voltage
                exceeding 1,000V); insulated grounding wire for a voltage not exceeding
                1,000V (fitted or not fitted with connectors); cable for a voltage
                exceeding 1,000V (alone or fitted with connectors); subframes; body
                panels; bumper components (fascia; air inlet; reinforcement beam); seat
                belts; seat belt webbing; cross members; fenders; hoods; body stamped
                components (door panel; floor panel; electric charger port door; hinge
                door; door skin; windshield molding); visors; torque boxes; cables
                (hood; decklid; door); trunk liners; cargo restraint nets; stoppers
                (brake pedal; accelerator pedal arm); interior door trim/molding;
                dashboard panels; air ducts; glove compartment doors; pillars; trunk
                lids; window lift mechanisms; brake components (brake discs/rotors;
                plates (metal backing; anchor); brake line brackets; shoes; drums;
                hubs; rotors; rotor shields; spindles; brake pads; shims; pistons;
                piston boots; boot rings; calipers); gears and components (boxes;
                carriers; shims); suspension systems and components (coil springs;
                assemblies (link; control arm); camber link bushings; shocks; struts;
                axle damper forks; dampers; damper dust boots; damper spring modules;
                knuckles; ride height sensor drop links); radiator shrouds; radiators;
                steering columns and components (power steering assemblies;
                intermediate shafts; intermediate shaft assemblies); steering wheels;
                steering boxes; safety airbags; accelerator pedals; sound absorbing
                insulation; lenses for automotive headlight lamps, parking lamps, and
                signal lamps; automotive navigation apparatus (electronic control
                units); tire pressure management systems; motor vehicle seats; lumbar
                seat bolsters; and, motor vehicle seat upholstery (duty rate ranges
                from duty free to 9.0%). The request indicates that finished lithium-
                ion batteries, finished lithium-ion battery packs for electrically
                powered vehicles, lithium-ion battery cells, lumbar seat bolsters, and
                motor vehicle seat upholstery will be admitted to the zone in
                privileged foreign (PF) status (19 CFR 146.41), thereby precluding
                inverted tariff benefits on such items. The request also indicates that
                certain materials/components are subject to duties under Section 232 of
                the Trade Expansion Act of 1962 (Section 232) or Section 301 of the
                Trade Act of 1974 (Section 301), depending on the country of origin.
                The applicable Section 232 and Section 301 decisions require subject
                merchandise to be admitted to FTZs in PF status.
                 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 July 27, 2020.
                 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 www.trade.gov/ftz.
                 For further information, contact Juanita Chen at
                [email protected] or 202-482-1378.
                 Dated: June 10, 2020.
                Andrew McGilvray,
                Executive Secretary.
                [FR Doc. 2020-12951 Filed 6-15-20; 8:45 am]
                BILLING CODE 3510-DS-P
                

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