ZF Seeks Duty Breaks for Electric Vehicle Transmissions in SC
Published Date: 4/21/2025
Notice
Summary
ZF Transmissions Gray Court LLC wants to expand its production of electric and automatic vehicle parts in South Carolina’s Foreign-Trade Zone 38. This means they’ll add new electric vehicle components like motors and transmissions using specific imported materials, which could save them money on import duties. The proposal was officially received on April 15, 2025, and now awaits approval to get rolling.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
FTZ expansion for EV parts production
ZF Transmissions Gray Court LLC submitted a request on April 15, 2025 to expand production at Foreign-Trade Zone 38 (Subzone 38K) in Gray Court and Fountain Inn, South Carolina to add electric and automatic vehicle transmissions and related components. If the Board authorizes this, the company may conduct production under FTZ procedures that can reduce or defer import duties on the specified foreign materials and components.
Stated duty-rate ranges for products and parts
The notice lists duty-rate ranges for the proposed items: finished products (plug-in hybrid transmissions, electric drives, motors, etc.) carry duty rates ranging from 2.5% to 6.5%, and the listed foreign-status materials/components carry duty rates ranging from duty-free up to 9.0%.
Certain inputs subject to special duty rules
The request states some materials/components are subject to duties under section 1702(a)(1)(B) of the International Emergency Economic Powers Act, section 232 of the Trade Expansion Act of 1962, or section 301 of the Trade Act of 1974 depending on country of origin, and those items must be admitted to FTZs in privileged foreign status under 19 CFR 146.41.
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