[Federal Register Volume 73, Number 73 (Tuesday, April 15, 2008)]
[Notices]
[Page 20246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-8042]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

(Docket 22-2008)


Foreign-Trade Zone 2 New Orleans, Louisiana, Application for 
Subzone, Haliburton Energy Services, Inc.(Barite Grinding and Milling) 
New Orleans, Louisiana

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of New Orleans, grantee of Foreign-Trade Zone 
(FTZ) 2, requesting special-purpose subzone status for the barite 
grinding and milling facility of Haliburton Energy Services, Inc. 
(HESI) located in New Orleans, 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 April 1, 2008.
    The HESI facility (12 acres, 18 employees) is located within the 
14-acre Port of New Orleans property located at 8000 Jourdan Road, in 
New Orleans. The facility is used for the 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 480,000 
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. HESI 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 HESI 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 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. HESI 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, Christopher Kemp of the 
FTZ staff is 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 June 16, 2008. Rebuttal comments in response to material 
submitted during the foregoing period may be submitted during the 
subsequent 15-day period (to June 30, 2008).
    A copy of the application and accompanying exhibits will be 
available at each of the following addresses: U.S. Department of 
Commerce Export Assistance Center, 2 Canal Street, Suite 2710, New 
Orleans, LA 70130; and, Office of the Executive Secretary, Foreign-
Trade Zones Board, Room 2111, U.S. Department of Commerce, 1401 
Constitution Ave, NW, Washington, D.C. 20230. For further information 
contact Christopher Kemp at [email protected] or (202) 482-
0862.

    Dated: April 1, 2008.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E8-8042 Filed 4-14-08; 8:45 am]
BILLING CODE 3510-DS-S