[Federal Register Volume 64, Number 122 (Friday, June 25, 1999)]
[Notices]
[Page 34189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16245]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 31-99]


Foreign-Trade Zone 149--Freeport, Texas; Application for Foreign-
Trade Subzone Status; Dow Chemical Company (Petrochemical Complex), 
Brazoria County, Texas

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Brazos River Harbor Navigation District, grantee of 
FTZ 149, requesting special-purpose subzone status for the 
petrochemical complex of Dow Chemical Company (Dow), located in 
Brazoria County, Texas. The application was submitted pursuant to the 
provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-
81u), and the regulations of the Board (15 CFR part 400). It was 
formally filed on June 15, 1999.
    The Dow petrochemical complex (8,555 acres, 5,300 employees) 
consists of five sites in Brazoria County, Texas: Site 1: Plant A 
petrochemical manufacturing facility and marine terminal (1,571 acres) 
located adjacent to Port Freeport at FM 1495; Site 2: Plant B 
petrochemical manufacturing facility (3,077 acres) located at State 
Hwy. 288-B and State Hwy. 332, north of the Brazos River; Site 3: 
Oyster Creek petrochemical manufacturing facility (825 acres) located 
at the intersection of State Hwy. 332 and Route FM 523; Site 4: Oyster 
Creek expansion site (904 acres) located adjacent to Site 3 south of 
the intersection of State Hwy. 332 and east of Route FM 523; and Site 
5: Stratton Ridge storage facility (13 underground caverns with 15.3 
billion-pound storage capacity on 2,178 acres) located south of Route 
FM 523 and intersected by County Road 226. The olefins plants (5,300 
employees) produce a variety of petrochemical feedstocks and fuel 
products, including ethylene (3.3 billion-lb. capacity), propylene (865 
million-lb. capacity), butadiene (425 million-lb. capacity) and 
pyrolysis gasoline (875 million-lb. capacity), propane, benzene, and 
naphtha. Some 37 percent of the inputs, including fuel oil, naphtha, 
condensate, and natural gasoline, are sourced abroad.
    Zone procedures would exempt the petrochemical complex from Customs 
duty payments on the foreign products used in its exports. On domestic 
sales, the company would be able to choose the Customs duty rates that 
apply to certain petrochemical feedstocks (duty-free) by admitting 
incoming foreign inputs (e.g. naphtha, fuel oil, and condensates) in 
non-privileged foreign status. The duty rates on inputs range from 
5.2 cents/barrel to 10.5 cents/barrel. Under the FTZ Act, certain 
merchandise in FTZ status is exempt from ad valorem inventory-type 
taxes. The application indicates that the savings from zone procedures 
would help improve the refinery's international competitiveness.
    In accordance with the Board's regulations, a member of the FTZ 
Staff has been designated examiner to investigate the application and 
report to the Board.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the address below. The closing period for their receipt is 
August 24, 1999. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to September 8, 1999).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce, Export Assistance Center, 500 Dallas, 
Suite 1160, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW, 
Washington, DC 20230

    Dated: June 17, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-16245 Filed 6-24-99; 8:45 am]
BILLING CODE 3510-DS-P