[Federal Register Volume 69, Number 235 (Wednesday, December 8, 2004)]
[Notices]
[Pages 70996-70997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26974]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[FTZ Dockets 54(1)-54(5)-2004]


Requests for Extension of Authority (Crude Oil Refineries/
Petrochemical Complexes)

    Requests have been submitted to the Foreign-Trade Zones Board (the 
Board) by the following grantees, pursuant to Sec.  400.32(b)(1) of the 
Board's regulations, for a time extension of their authority to elect 
non-privileged foreign status (NPF) on crude oil used in the production 
of certain petrochemical feedstocks and refinery by-products at the 
crude oil refineries/petrochemical complexes of the companies listed 
below. The requests were formally filed on November 30, 2004.
    The FTZ Board has authorized 81 refineries/petrochemical complexes 
to conduct crude oil/petrochemical product refining activity under FTZ 
procedures. Fifty-eight of these subzones were approved with an 
indefinite extension of NPF status on August 24, 2000 (Board Order 
1116, 65 FR 52696, 8/30/2000). Such authority involves full access to 
FTZ procedures for export activity and, with regard to products sold in 
the U.S., the option to choose NPF status (NPF option) for certain 
petrochemical feedstocks and refinery by-products. The extension case 
involved a comprehensive assessment of zone use by the 58 refineries 
considering their economic and regulatory circumstances. Since then, 
twelve new refinery subzones have been approved with indefinite NPF 
authority.
    The five refinery/petrochemical subzones listed below were not 
included in the August 2000 action because their cases were pending 
during that review and they received approval subject to the following 
restrictions:
    1. Foreign status (19 CFR 146.41, 146.42) products consumed as fuel 
for the refinery shall be subject to the applicable duty rate.
    2. Privileged foreign status (19 CFR 146.41) shall be elected on 
all foreign merchandise admitted to the subzone, except that non-
privileged foreign (NPF) status (19 CFR 146.42) may be elected

[[Page 70997]]

on refinery inputs covered under HTSUS Subheadings 2709.00.10, 
2709.00.20, 2710.11.25, 2710.11.45, 2710.19.05, 2710.19.10, 2710.19.45, 
2710.91.00, 2710.99.05, 2710.99.10, 2710.99.16, 2710.99.21 and 
2710.99.45 which are used in the production of:
    --certain petrochemical feedstocks and refinery by-products;
    --products for export;
    --and, products eligible for entry under HTSUS Subheadings 
9808.00.30 and 9808.00.40 (U.S. Government purchases).
    3. The authority with regard to the NPF option is initially granted 
until September 30, 2005, subject to extension.
    The zone grantees on behalf of the refining/petrochemical 
facilities listed below are now requesting that the authority for the 
NPF option (Condition 3) be extended.
    The refineries/petrochemical complexes produce fuels and 
petrochemical feedstocks from crude oil and other inputs, such as 
naphtha and natural gas condensate. Fuel products include gasoline, jet 
fuel, distillates, residual fuels, and motor fuel blendstocks. 
Petrochemical feedstocks and refinery by-products produced under zone 
procedures (NPF option) have included: benzene, toluene, xylene, 
naphthalene, natural gas--liquified & gaseous, ethane, propane, butane, 
ethylene, propylene, butylene, butadiene, paraffin waxes & petroleum 
jelly, carbon black oil, petroleum coke, asphalt, sulfur, sulfuric 
acid, cumene, pseudocumene, n-pentane and isopentane, isoprene, 
dicyclopentadiene, styrene, other aromatic hydrocarbon mixtures, 
mixtures of hydrocarbons not elsewhere specified, and certain other 
saturated and unsaturated acyclic and cyclic hydrocarbons. (Although 
the refining/petrochemical plants vary in their petroleum product 
slate, the review would generally include the full range of products 
listed above for all refineries.)
    Zone procedures exempt the refineries from Customs duty payments on 
the foreign products used in exports. On domestic sales, the NPF option 
allows the companies to choose the Customs duty rates that apply to 
certain petrochemical feedstocks and refinery by-products (HTSUS duty 
rates for most of these products are zero) by admitting incoming 
foreign crude oil and natural gas condensate in non-privileged foreign 
status. Such petrochemicals and by-products account for about 25 to 30 
percent of refinery activity, on average. The duty rates on inputs 
range from 5.25[cent]/barrel to 10.5[cent]/barrel. Duties on inputs 
used to make fuel products (motor gasoline, jet fuel, blendstocks), 
which constitute some 70 to 75 percent of production, will continue to 
be dutiable at the crude oil rate. The applications indicate that the 
continuation of authority to elect non-privileged foreign status will 
contribute to the refineries' international competitiveness.

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     Board order           Subzone            Company                Location                 Docket No.
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Grantee: Port of Long Beach, California
1050.................  50G...........  Shell Oil Products     Los Angeles, CA......  Doc. 54(1)-04
                                        U.S..
Grantee: Port of Corpus Christi Authority
1086.................  122N..........  Equistar Chemicals,    Nueces Co., TX.......  Doc. 54(2)-04
                                        LP.
Grantee: Port of Freeport, Texas
1087.................  149F..........  Equistar Chemicals,    Brazoria Co., TX.....  Doc. 54(3)-04
                                        LP.
1088.................  149G..........  Dow Chemical Company.  Brazoria Co., TX.....  Doc. 54(3)-04
Grantee: Board of Harbor Commissioners of the City of Los Angeles
1032.................  202C..........  ConocoPhillips         Los Angeles, CA......  Fov. 54(5)-04
                                        Company.
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    In accordance with the Board's regulations, a member of the FTZ 
Staff has been designated examiner to investigate the requests and 
report to the Board.
    Public comment on these proposals is invited from interested 
parties. Submissions (original and 3 copies) shall be addressed to the 
Board's Executive Secretary at one of the following addresses:
    1. Submissions Via Express/Package Delivery Services: Foreign-
Trade-Zones Board, U.S. Department of Commerce, Franklin Court 
Building--Suite 4100W, 1099 14th St. NW., Washington, DC 20005; or
    2. Submissions Via the U.S. Postal Service: Foreign-Trade-Zones 
Board, U.S. Department of Commerce, FCB--Suite 4100W, 1401 Constitution 
Ave. NW., Washington, DC 20230.
    The closing period for their receipt is February 7, 2005. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period (to February 22, 
2005).
    Copies of the requests will be available for public inspection at 
the Office of the Foreign-Trade Zones Board's Executive Secretary at 
address Number 1 listed above.

    Dated: December 2, 2004.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 04-26974 Filed 12-7-04; 8:45 am]
BILLING CODE 3510-DS-P