[Federal Register Volume 73, Number 19 (Tuesday, January 29, 2008)]
[Notices]
[Pages 5175-5176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1536]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 2-2008]


Foreign-Trade Zone 124--Gramercy, LA; Application for Subzone; 
Baker Hughes, Inc., (Barite Grinding and Milling), Morgan City, LA

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of South Louisiana, grantee of Foreign-Trade 
Zone (FTZ) 124, requesting special-purpose subzone status for the 
barite grinding and milling facility of Baker Hughes, Inc. (Baker 
Hughes) located in Morgan City, Louisiana. 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 January 16, 2008.
    The Baker Hughes facility (12 acres, 13 employees) is located at 
100 First Street, in Morgan City, within the Morgan City Customs and 
Border Protection port of entry. The facility is used for 
manufacturing, warehousing and distribution activities related to the 
processing of raw barite (HTSUS 2511.10) into ground barite (up to 
350,000 tons annually). Ground barite is used in the production of 
drilling fluids (drilling mud) and various specialty chemicals for use 
by the oil and gas exploration industry. Baker Hughes sources the 
majority of its raw barite from abroad. The duty rate on the imported 
raw barite is $1.25 per metric ton.
    This application requests authority for Baker Hughes to conduct the 
activity under FTZ procedures, which would exempt the company from 
Customs duty payments on the imported barite used in export production. 
Less than one percent of production is exported. On domestic sales, the 
company could choose the lower duty rate (duty-free) for the imported 
raw barite used in manufacturing that applies to the finished product. 
The majority of FTZ-related savings will come from the elimination of 
the duty on the finished product. Baker Hughes will also realize 
additional savings on the elimination of duties on materials that 
become scrap/waste during manufacturing. The application indicates that 
the FTZ-related savings would improve the plant'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 listed below. The closing period for their 
receipt is March 31, 2008. Rebuttal comments in response to material 
submitted during the foregoing period may be submitted during the 
subsequent 15-day period (to April 14, 2008).

[[Page 5176]]

    A copy of the application and accompanying exhibits will be 
available at each of the following addresses: Port of South Louisiana, 
171 Belle Terre Blvd., P.O. Box 909, LaPlace, LA 70069; and, Office of 
the Executive Secretary, Foreign-Trade Zones Board, Room 2111, U.S. 
Department of Commerce, 1401 Constitution Ave, NW., Washington, DC 
20230. For further information contact Christopher Kemp at 
[email protected] or (202) 482-0862.

    Dated: January 16, 2008.
Andrew McGilvray,
Executive Secretary.
 [FR Doc. E8-1536 Filed 1-28-08; 8:45 am]
BILLING CODE 3510-DS-P