Rivian Electric Vehicle FTZ Application Draws Oppostion from Multiple U.S. Industries

Rivian Automotive, LLC (Rivian) submitted a notification of proposed production activity to the FTZ Board for its facilities in Normal, Illinois (see 86 FR 7249). The facility will be used for the production of electric passenger and delivery vehicles, as well as vehicle components, subassemblies, chargers and charging stations. Production under FTZ procedures could exempt Rivian from customs duty payments on the foreign-status materials/components used in export production. On its domestic sales, for the foreign-status materials/components below, Rivian would be able to choose the lower duty rates during customs entry procedures that apply to the finished articles, rather than the higher rates applicable to certain foreign inputs (i.e., there is a "duty inversion").

The request indicates that carrying/storage cases of man-made fibers, seat belt webbing, and camping tents for pick-up truck beds will be admitted to the zone in privileged foreign (PF) status (19 CFR 146.41) thereby precluding inverted tariff benefits on such items. This is in line with nearly two decades experience of most foreign textile components being excluded, either in the application, or, in the final Board order.

HOWEVER, the request includes many articles, such as rubber profiles, steel springs, and other such article which, while not textiles themselves, may have a textile covering or coating, such as flock.

Comments in opposition were filed by:

• Alumina and Angstrom Automotive.pdf, a Tier 1 supplier of forged aluminum parts,
• Milliken and Company,
• American Flock Association, and
• National Council of Textile Organizations

A determination by the FTZ Board is expected by early May.

Spectro Coating Aquires Dorrie International, will be the Only Vertically Integrated Provider of Flock Tape

New England flock company Spectro Coating Corp. announces the acquisition of the assets of Dorrie International / Hicks & Otis Prints Inc. of Norwalk Connecticut. Dorrie International was a major supplier of automotive flock tape for automotive window sealing systems.

The new division will be called American Flock Tape (AFT), and will be the only vertically integrated provider of flock tape in the world. The acquisition will allow them to slit and spool to the demanding requirements of the automotive, medical, and other markets.

Spectro Coating Corp. has been in business for over 30 years under the current ownership, with roots going back more than 80 years. Claremont Flock, a division of Spectro Coating Corp. has been one of the largest flock manufacturers since 1914. We are certified ISO 9001:2015 and a Minority Owned Business.

All products are proudly Manufactured in the U S A.

CBP Implementing Instructions and Procedures for the Submissions of Petitions Regarding USMCA Rules of Origin

The United States Customs and Border Protection (CBP) has posted implementing instructions on its website to provide additional detail and instruction for compliance with the automotive rules of origin under the United States-Mexico-Canada Agreement (USMCA). The instructions are available HERE.

AFA 32nd Annual Meeting

The American Flock Association 32nd annual meeting will be at the Hilton Garden Inn, Novi, MI on October 22nd and 23rd, 2017. Following the meeting the AFA will be exhibiting at the AUTO INTERIOR EXPO, October 24th - 26th (Booth A148) .

This year's meeting will be focused on flocking for the automotive industry. Here is a chance to interact with industry leaders, to discuss new concepts for Flock, and to learn about the future of Flock in cars.

Click here for a registration form.

Foreign-Trade Zone (FTZ) 98--Birmingham, Alabama; Notification of Proposed Production Activity; Brose North America Inc. (Automotive Seats, Drives and Door Frames); Vance, Alabama

Brose North America Inc. (Brose) has submitted to the Foreign-Trade Zone Board a notification of proposed production activity to the FTZ Board for its facility in Vance, Alabama within FTZ 98.

Production under FTZ procedures could exempt Brose 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, Brose would be able to choose the duty rates during customs entry procedures that apply to: Seat frames; seat adjusters for motor vehicles powered with electric DC motors; seat pans; cooling fans for automobiles; and, doors for automobiles (duty rate ranges from duty-free to 2.5%). Brose 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: Plastic tubes and hoses; plastic tube protectors; decals; plastic spacers and other articles of plastic; rubber spacers; labels; steel self-tapping screws; screw and nut assemblies; steel locking lugnuts; steel torsion spring washers and lock washers; steel rivets; metal fasteners; steel cable drum wires; steel metal clips; locks; base metal mountings; steel brackets; metal mounting for seats; steel tubular rivets; steel bearing balls; plain shaft bearings with housings; gear boxes; gears and gearing; gearing housings; synchronous electric DC motors of an output under 18.65 watts; electric DC motors of an output not exceeding 37.5 watts; universal AC/DC motors of an output between 37.5 watts and 746 watts; DC motors of an output between 37.5 watts and 14.92 kilowatts; DC generators; multi-phase AC motors exceeding 74.6 watts but not exceeding 735 watts; electrical lighting or signaling equipment; electrical circuit switching and protection components; vehicle body stampings; lock rods; lock actuators; guide rails for door assemblies; measuring instruments; seat frames; seat pans; coated cross tubes; side panels; slider assemblies; and ink ribbons used for printers (duty rate ranges from duty-free to 8.5%).

Comment is invited from interested parties. The closing period for their receipt is September 18, 2017.

Mark your calendars: STRC 2015 will be held in Greenville, S.C.

The Southern Textile Research Conference ("STRC") Committee has announced that the next conference will be held at a new location in Greenville, S.C. on May 17-19, 2015. The theme of the 2015 STRC will be Advanced Automotive Materials, Textiles and Fibers. The conference will convene at the Hyatt Regency Hotel in downtown Greenville. In addition to the new location, the format of the conference will change; a tour of an automotive research facility is being planned the afternoon of May 18.

Visit www.thestrc.org for information on the 2014 conference.