DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 19-90]
55 FR 22052
May 31, 1990
Foreign-Trade Zone 84, Harris County, TX (Houston Customs Port of Entry);
Application for Subzone by Hill Petroleum Co., Houston and Texas City, TX
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Port of Houston Authority, grantee of FTZ 84, requesting
special-purpose subzone status at two refineries of Hill Petroleum Company
(subsidiary of Phibro Energy, Inc.) located in Houston and Texas City,
Texas, adjacent to the Houston Customs port of entry. 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 May 18, 1990.
Hill's Houston refinery (213 acres, 71,000 BPD) is located at 9701
Manchester Avenue, adjacent to the Houston Ship Channel. The company's
Texas City refinery (281 acres, 130,000 BPD) is located at 1301 Loop 197
South, adjacent to Texas City Harbor. The facilities refine crude oil
(some 80% foreign) into a full range of petroleum products including motor
fuel, heating oil, fuel oils, jet fuel, kerosene, MTBE, propane, propylene,
butylenes, asphalt, and aromatic and aliphatic chemicals. Some 9 percent
of the products are exported.
Zone procedures would exempt the refineries from Customs duty payments on
the foreign products used in its exports. On its domestic sales, the company
is seeking to avoid duties on fuel used in the refinery. On certain
products such as asphalt and propane, the company would also be able to
choose the rate available on the end products. The duty rates on crude oil
range from 5.25 to 10.5 cents per barrel and the rates on end products
range from zero to 8 cents per barrel (equivalent). Foreign merchandise and
merchandise to be exported would also be exempt from state and local ad
valorem taxes. The applicant indicates that zone procedures would help the
company's international competitiveness.
In accordance with the Board's regulations, an examiners committee has
been appointed to investigate the application and report to the Board. The
committee consists of: John J. Da Ponte, Jr. (Chairman), Director, Foreign-
Trade Zones Staff, U.S. Department of Commerce, Washington, DC 20230; Paul
Rimmer, Deputy Assistant Regional Commissioner, U.S. Customs Service,
Southwest Region, suite 500, 5850 San Felipe Street, Houston, Texas 77057;
and Colonel Brink Miller, District Engineer, U.S. Army Engineer District
Galveston, P.O. Box 1229, Galveston, Texas 77553.
Comments concerning the proposed subzones are invited in writing from
interested parties. They should be addressed to the Board's Executive
Secretary at the address below and postmarked on or before July 9, 1990.
A copy of the application and accompanying exhibits will be available
during this time for public inspection at each of the following locations:
U.S. Department of Commerce, District Office,
2625 Federal Building,
515 Rusk Street, Houston, Texas 77002
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th and Pennsylvania Avenue, NW., room 2835,
Washington, DC 20230
Dated: May 22, 1990.
Acting Executive Secretary.
[FR Doc. 90-12522 Filed 5-30-90; 8:45 am]
BILLING CODE 3510-DS-M