[Federal Register: March 11, 2008 (Volume 73, Number 48)]
[Notices]
[Page 12949-12950]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11mr08-33]
-----------------------------------------------------------------------
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 christopher_kemp@ita.doc.gov 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