Import Administration
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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
 
                                [Order No. 415] 
 
                                  53 FR 53040 
 
                               December 30, 1988 
 
   Resolution and Order Approving the Application of the State of Hawaii 
for a Subzone at the Chevron U.S.A., Inc., Refinery in Ewa, Oahu, HI  
 
TEXT: Proceedings of the Foreign-Trade Zones Board, Washington, DC.  
 
 
Resolution and Order 
 
   Pursuant to the authority granted in the Foreign-Trade Zones Act of June
18, 1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board (the
Board) has adopted the following Resolution and Order: 
 
   The Board, having considered the matter, hereby orders:  
 
   After consideration of the application of the State of Hawaii (Department
of Business and Economic Development), grantee of FTZ 9, filed with the 
Foreign-Trade Zones Board (the Board) on December 30, 1987, requesting 
special-purpose subzone status for the crude oil refinery of Chevron U.S.A.,
Inc., located in Ewa, Oahu, Hawaii, adjacent to the Honolulu Customs port 
of entry, the Board, finding that the requirements of the Foreign-Trade 
Zones Act, as amended, and the Board's regulations would be satisfied, and
that the proposal would be in the public interest, if approval is subject 
to certain conditions, approves the application subject to the following 
conditions:  
 
   1. Foreign crude oil used as fuel for the refinery shall be dutiable.  
 
   2. Chevron shall elect privileged foreign status on foreign crude oil 
and other foreign merchandise admitted to the subzone. 
 
   3. The U.S. Customs Service shall inform the Foreign-Trade Zones Board 
on or before July 1, 1991, that a satisfactory control system has been 
implemented so that the revenue can be fully protected; otherwise, the 
authority under this grant shall expire on that date. 
 
   The Secretary of Commerce, as Chairman and Executive Officer of the 
Board, is hereby authorized to issue a grant of authority and appropriate 
Board Order.  
 
   Grant of Authority to Establish a Foreign-Trade Subzone at the Chevron 
U.S.A., Inc. Refinery in Ewa, Oahu, Hawaii 
 
   Whereas, by an Act of Congress approved June 18, 1934, an Act "To 
provide for the establishment, operation, and maintenance of foreign-trade
zones in ports of entry of the United States, to expedite and encourage 
foreign commerce, and for other purposes", as amended (19 U.S.C. 81a-81u) 
(the Act), the Foreign-Trade Zones Board (the Board) is authorized and 
empowered to grant to corporations the privilege of establishing, operating,
and maintaining foreign-trade zones in or adjacent to ports of entry under 
the jurisdiction of the United States;  
 
   Whereas, the Board's regulations (15 CFR 400.304) provide for the 
establishment of special-purpose subzones when existing zone facilities 
cannot serve the specific use involved, and where a significant public 
benefit will result; 
 
   Whereas, the State of Hawaii (Department of Business and Economic 
Development), grantee of Foreign-Trade Zone No. 9, has made application 
(filed December 30, 1987, FTZ Docket 49-87, 53 FR 784) in due and proper 
form to the Board for authority to establish a special-purpose subzone at 
the oil refinery of Chevron U.S.A., Inc. (Chevron), located in Ewa, Oahu, 
Hawaii;  
 
   Whereas, notice of said application has been given and published, and 
full opportunity has been afforded all interested parties to be heard; and 
 
   Whereas, the Board has found that the requirements of the Act and the 
Board's regulations are satisfied and that the proposal would be in the 
public interest if approval is given subject to the conditions in the 
resolution accompanying this action; 
 
   Now, therefore, in accordance with the application filed December 30, 
1987, the Board hereby authorizes the establishment of a subzone at the 
Chevron refinery, designated on the records of the Board as Foreign-Trade 
Subzone No. 9E, at the location mentioned above and more particularly 
described on the maps and drawings accompanying the application, said grant 
of authority being subject to the provisions and restrictions of the Act 
and the Regulations issued thereunder, and those stated in the resolution 
accompanying this action, and also to the following express conditions and 
limitations:  
 
   Activation of the subzone shall be commenced within a reasonable time 
from the date of issuance of the grant, and prior thereto, any necessary 
permits shall be obtained from Federal, State, and municipal authorities.  
 
   Officers and employees of the United States shall have free and 
unrestricted access to and throughout the foreign-trade subzone in the 
performance of their official duties. 
 
   The grant shall not be construed to relieve responsible parties from 
liability for injury or damage to the person or property of others 
occasioned by the construction, operation, or maintenance of said subzone, 
and in no event shall the United States be liable therefor. 
 
   The grant is further subject to settlement locally by the District 
Director of Customs and District Army Engineer with the Grantee regarding 
compliance with their respective requirements for the protection of the 
revenue of the United States and the installation of suitable facilities. 
 
   In witness whereof, the Foreign-Trade Zones Board has caused its name 
to be signed and its seal to be affixed hereto by its Chairman and 
Executive Officer or his delegate at Washington, DC, this 21st day of 
December, 1988, pursuant to Order of the Board. 
 
 
Foreign-Trade Zones Board. 
Jan. W. Mares, 
 
   Assistant Secretary of Commerce for Import Administration, Chairman, 
Committee of Alternates. 
 
 
Attest: 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.   
[FR Doc. 88-30115 Filed 12-29-88; 8:45 am] 
 
   BILLING CODE 3510-DS-M