[Federal Register Volume 84, Number 213 (Monday, November 4, 2019)]
[Notices]
[Page 59352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24037]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-68-2019]


Foreign-Trade Zone 12--McAllen, Texas; Application for Production 
Authority; Black & Decker (U.S.), Inc. (Lithium Ion Battery Assembly 
for Cordless Power Tools), Mission, Texas

    An application has been submitted to the Foreign-Trade Zones (FTZ) 
Board by the McAllen Foreign Trade Zone Inc., grantee of FTZ 12, 
requesting production authority on behalf of Black & Decker (U.S.), 
Inc. (Black & Decker), located in Mission, Texas. The application 
conforming to the requirements of the regulations of the FTZ Board (15 
CFR 400.23) was docketed on October 25, 2019.
    The Black & Decker facility (180 employees, 17.2 acres) is located 
within Site 4 of FTZ 12. The facility is used for the manufacture/
assembly of cordless power tools and of power tool components (lithium 
ion batteries, plastic injection molded parts, cordless motors, and 
certain subassemblies), and for the packaging/kitting of power tools 
with their components. In 2018, Black & Decker requested production 
authority in a notification proceeding (15 CFR 400.22 and 400.37). 
After an initial review, the requested production authority was 
approved subject to a restriction requiring that lithium ion batteries 
and related components be admitted in privileged foreign status, which 
precludes inverted tariff benefits on those inputs (see B-33-2018, 83 
FR 50636, October 9, 2018). The pending application proposes to remove 
that restriction.
    If the application were approved, on its domestic sales, Black & 
Decker would be able to choose the duty rates during customs entry 
procedures that apply to lithium ion batteries (duty rate: 3.4%) and 
cordless power tools (duty rate ranges between duty free to 4%) for the 
foreign-status inputs noted below. The company currently intends to 
ship a significant portion of its Mission-produced battery packs zone 
to zone to its manufacturing facility (Subzone 38M) in Fort Mill, South 
Carolina. Black & Decker 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 
request indicates that the savings from FTZ procedures would help 
improve the plant's international competitiveness.
    Components and materials sourced from abroad (representing 60 
percent of the value of the finished battery pack) include lithium ion 
batteries and related parts (lithium ion cells, assembly housings, cell 
holders, front insert covers, cover housings, and latches) (duty rate: 
3.4%). 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).
    In accordance with the FTZ 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 FTZ Board.
    Public comment is invited from interested parties. Submissions 
shall be addressed to the FTZ Board's Executive Secretary and sent to: 
[email protected]. The closing period for their receipt is January 3, 2020. 
Rebuttal comments in response to material submitted during the 
foregoing period may be submitted during the subsequent 15-day period 
to January 21, 2020.
    A copy of the application will be available for public inspection 
in the ``Reading Room'' section of the FTZ Board's website, which is 
accessible via www.trade.gov/ftz.
    For further information, contact Diane Finver at 
[email protected] or (202) 482-1267.

    Dated: October 29, 2019.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2019-24037 Filed 11-1-19; 8:45 am]
BILLING CODE 3510-DS-P