[Federal Register: May 12, 1999 (Volume 64, Number 91)]
[Notices]               
[Page 25477-25478]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12my99-42]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 15-99]

 
Foreign-Trade Zone 122--Corpus Christi, TX; Application for 
Subzone Equistar Chemicals LP (Oil Refinery); Nueces County, TX

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Corpus Christi Authority, grantee of FTZ 
122, requesting special-purpose subzone status for the petrochemical 
complex of Equistar Chemicals LP, located in Nueces 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 April 27, 1999.
    The petrochemical complex and connecting pipelines (1,700 acres) 
are located at four sites in Nueces County, Texas (Corpus Christi 
area): Site 1 (1,600 acres)--main petrochemical complex, located at 
1501 McKinzie Road; Site 2 (3 leased tanks on 51.26 acres, 141,600 
barrel capacity )--dock facility located adjacent to the Corpus Christi 
inner harbor; Site 3 (10 leased tanks, 1.4 million barrel capacity) at 
the Hess storage facility and, and Site 4 (2 leased tanks, 166,000 
barrel capacity) located at the CITGO Corpus Christi refinery located 
at 1802 Nueces Bay Blvd. The complex (253 employees) produces a variety 
of petrochemical feedstocks and fuel products, including ethylene (1.7 
billion lb. capacity), propylene (800 million lb. capacity), benzene 
(600 million lb. capacity), butadiene (200 million lb. capacity), 
propane, toluene, butylenes, piperylenes, resin oils, 
dicylcopentadiene, isoprene, methanol, and fuel oils. The complex also 
produces MTBE, biphenyl, hydrogen, and certain gasoline blendstocks, 
which will not be produced under zone procedures. Some 54 percent of 
the inputs, including gas oil, naphtha, condensate, and natural 
gasoline, are sourced abroad.
    Zone procedures would exempt the refinery 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 by admitting incoming foreign 
inputs in non-privileged foreign status. The duty rates on inputs range 
from 5.25 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 
July 12, 1999. Rebuttal comments in response to material

[[Page 25478]]

submitted during the foregoing period may be submitted during the 
subsequent 15-day period (to July 26, 1999).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

Office of the Port Director, U.S., Customs Service, 400 Mann St., 
Corpus Christi, Texas 78401
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW., 
Washington, DC 20230

    Dated: May 3, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-12014 Filed 5-11-99; 8:45 am]
BILLING CODE 3510-DS-P