[Federal Register Volume 73, Number 48 (Tuesday, March 11, 2008)]
[Notices]
[Pages 12949-12950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-4834]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 15-2008]


Foreign-Trade Zone 122-- Corpus Christi, TX; Application for 
Subzone; Baker Hughes, Inc. (Barite Grinding and Milling); Corpus 
Christi, TX

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Corpus Christi Authority, grantee of 
Foreign-Trade Zone (FTZ) 122, requesting special-purpose subzone status 
for the barite grinding and milling facility of Baker Hughes, Inc. 
(Baker Hughes) located in Corpus Christi, 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 by the Board on February 25, 2008.
    The Baker Hughes facility (11 acres, 12 employees) is located at 
322 Manning Road, in Corpus Christi, within the Corpus Christi 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 2511.10.50) into ground barite (HTSUS 
2511.10.10) (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 natural gas exploration industry. 
Baker Hughes sources the majority of its raw

[[Page 12950]]

baritefrom abroad. The duty rate on the 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 May 12, 2008. Rebuttal comments in response to material 
submitted during the foregoing period may be submitted during the 
subsequent 15-day period May 27, 2008.
    A copy of the application and accompanying exhibits will be 
available at each of the following addresses: the Port of Corpus 
Christi Authority, 222 Power Street, Corpus Christi, TX 78403; and, 
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW., 
Washington, DC, 20230. For further information contact Christopher Kemp 
at [email protected] or (202) 482-0862.

    Dated: February 25, 2008.
Andrew McGilvray,
 Executive Secretary.
 [FR Doc. E8-4834 Filed 3-10-08; 8:45 am]
BILLING CODE 3510-DS-P