Background

The Foreign-Trade Zones Board has received from Toyota Motor Manufacturing Alabama Inc. a

notification of proposed production activity at its facilities in Huntsville, Ala., which are used for the production of spark-ignition engines, transmissions and related components for passenger motor vehicles. A separate request for subzone designation at these facilities will be submitted and processed.

Production under FTZ procedures could exempt TMMAL from customs duty payments on the foreign status components used in export production. On its domestic sales, TMMAL would be able to choose for the specified foreign status inputs the duty rate that applies to passenger motor vehicle engines, transmissions and related components (2.5 percent). Customs duties also could possibly be deferred or reduced on foreign status production equipment.

Comments on this notification are due no later than June 22.

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