The U.S. Department of Commerce will in the Jan. 22 Federal Register issue a notice that it will take 40 days of comment on an application by GE Generators (Pensacola) LLC to the department’s Foreign-Trade Zones Board for new activity at its wind turbine facility located in Pensacola, Florida.
GE Generators already has authority to produce wind turbines and related blades within a board-administered area called Subzone 249A. The current request would add finished products (nacelle assemblies and hubs) and foreign-status components to the scope of authority. This activity would be limited to the specific foreign-status components and specific finished products described in the submitted notification and subsequently authorized by the FTZ Board.
Production under FTZ procedures could exempt GE Generators from customs duty payments on the foreign status components used in export production. On its domestic sales, GE Generators would be able to choose the duty rates during customs entry procedures that apply to nacelle assemblies and hubs (duty rates – free, 2.5%) for the foreign-status inputs noted below and in the existing scope of authority. Customs duties also could possibly be deferred or reduced on foreign status production equipment.
The components sourced from abroad include: pitch bearings; hub castings; pitch cabinets; pitch drives; gearboxes; main shafts; yaw drives; bed plates; yaw bearings; top boxes; main bearings; pillow blocks; generator frames; flex couplings; gearbox coolers; gearbox isolation pedestals; pillow block housing covers; generator frames and legs; blade root spacers; and, elastomeric gearbox mounts (duty rate ranges from free to 5.8%).