83 FR 33918 - Foreign-Trade Zone (FTZ) 41-Milwaukee, Wisconsin; Notification of Proposed Production Activity; CNH Industrial America LLC (Tractors, Component Parts, and Axle Subassemblies); Sturtevant, Wisconsin

DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board

Federal Register Volume 83, Issue 138 (July 18, 2018)

[Federal Register Volume 83, Number 138 (Wednesday, July 18, 2018)]
[Notices]
[Page 33918]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15329]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-46-2018]


Foreign-Trade Zone (FTZ) 41--Milwaukee, Wisconsin; Notification 
of Proposed Production Activity; CNH Industrial America LLC (Tractors, 
Component Parts, and Axle Subassemblies); Sturtevant, Wisconsin

    CNH Industrial America LLC (CNH Industrial) submitted a 
notification of proposed production activity to the FTZ Board for its 
facility in Sturtevant, Wisconsin. The notification conforming to the 
requirements of the regulations of the FTZ Board (15 CFR 400.22) was 
received on July 11, 2018.
    CNH Industrial already has authority to produce tractors and 
tractor/combine components, as well as 4-wheel drive axle subassemblies 
within Subzone 41I. The current request would add finished products and 
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 and specific finished 
products described in the submitted notification (as set forth below) 
and subsequently authorized by the FTZ Board.
    Production under FTZ procedures could exempt CNH Industrial 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 and in the existing scope of 
authority, CNH Industrial would be able to choose the duty rates during 
customs entry procedures that apply to: Rubber hoses reinforced with 
metal fittings; linear acting cylinders; housing pump drives; solenoid 
valves; regulating valves; spool assemblies; valve assemblies; carrier 
bearing housings; power take-offs; final drives; differentials; clutch 
assemblies; rotor gear, transmission or differential cases; covers for 
transmission, axle, differential or clutch cases; rear track, final 
drive, hydraulic pump, front track, speed or power take-off housings; 
and, certain sub-assemblies for tractors suitable for agricultural use 
(specifically: Brakes; carrier assemblies; brake adjusters; shafts; 
gearbox assemblies; cases; covers; housings; test transmission wheels; 
flanges; frames; axle shafts; suspension saddles; radiators; clutches; 
gears; plates; supports; hydraulic returns; and, brackets) (duty rate 
ranges from duty-free to 5.0%). CNH Industrial 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 materials/components sourced from abroad include: Reclaimed 
rubber pads/flaps/seals; pneumatic rubber tires for use on agricultural 
vehicles and machines; retreaded/used rubber tires; corrugated floor 
pads and protectors; cardboard box/packaging; roller chain; copper 
alloy tube/pipe fittings; spray guns; lead-acid storage batteries; 
color video cameras; GPS navigational systems; antennas; electronic 
control units; discharge lamps; speed sensors, radio antenna cable; 
and, gear boxes for tractors for agricultural use (duty rate ranges 
from duty-free to 5.3%). The request indicates that pneumatic rubber 
tires is subject to antidumping/countervailing duty (AD/CVD) orders if 
imported from certain countries. The FTZ Board's regulations (15 CFR 
400.14(e)) require that merchandise subject to AD/CVD orders, or items 
which would be otherwise subject to suspension of liquidation under AD/
CVD procedures if they entered U.S. customs territory, be admitted to 
the zone in privileged foreign status (19 CFR 146.41). In addition, 
color video cameras, GPS navigational systems, antennas, and electronic 
control units may be subject to special duties under Section 301 of the 
Trade Act of 1974, if imported from China. The determination of Section 
301 duties requires that such merchandise be admitted to the zone in 
privileged foreign status.
    Public comment is invited from interested parties. Submissions 
shall be addressed to the Board's Executive Secretary at the address 
below. The closing period for their receipt is August 27, 2018.
    A copy of the notification will be available for public inspection 
at the Office of the Executive Secretary, Foreign-Trade Zones Board, 
Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230-0002, and 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: July 13, 2018.
Elizabeth Whiteman,
Acting Executive Secretary.
[FR Doc. 2018-15329 Filed 7-17-18; 8:45 am]
 BILLING CODE 3510-DS-P