Grant of Authority for Subzone Status; Tesla Motors, Inc., (Electric Passenger Vehicles), Palo Alto and Fremont, CA

Pursuant to its authority under the Foreign-Trade Zones Act of June 18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board (the Board) adopts the following Order:

Whereas, the Foreign-Trade Zones Act provides for “* * * the establishment * * * of foreign-trade zones in ports of entry of the United States, to expedite and encourage foreign commerce, and for other purposes,” and authorizes the Foreign-Trade Zones Board to grant to qualified corporations the privilege of establishing foreign-trade zones in or adjacent to U.S. Customs and Border Protection ports of entry;

Whereas, the Board's regulations (15 CFR part 400) provide for the establishment of special-purpose subzones when existing zone facilities cannot serve the specific use involved, and when the activity results in a significant public benefit and is in the public interest;

Whereas, the City of San Jose, California, grantee of Foreign-Trade Zone 18, has made application to the Board for authority to establish a special-purpose subzone at the electric passenger vehicle manufacturing facilities of Tesla Motors, Inc., located in Palo Alto and Fremont, California (FTZ Docket 3-2012, filed 1-10-2012);

Whereas, notice inviting public comment has been given in the Federal Register (77 FR 2269, 1-17-2012) and the application has been processed pursuant to the FTZ Act and the Board's regulations; and,

Whereas, the Board adopts the findings and recommendations of the examiner's report, and finds that the requirements of the FTZ Act and Board's regulations are satisfied, and that the proposal is in the public interest;

Now, therefore, the Board hereby grants authority for subzone status for activity related to the manufacturing of electric passenger vehicles and related powertrain components at the Tesla Motors, Inc., facilities located in Palo Alto and Fremont, California (Subzone 18G), as described in the application and Federal Register notice, subject to the FTZ Act and the Board's regulations, including Section 400.13.

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