FR Doc E9-29472[Federal Register: December 10, 2009 (Volume 74, Number 236)]
[Notices]              
[Page 65515]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10de09-40]                        

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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
Diane.Finver@trade.gov 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