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                           DEPARTMENT OF COMMERCE

  			 Foreign-Trade Zones Board

                               (Docket 17-93)

Foreign-Trade Zone 84--Houston, TX; Application for Subzone, Dril-Quip, Inc.,
         Oil Field Equipment Manufacturing Facilities, Houston, TX

                           Tuesday, May 18, 1993

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 for export activity at the oil field 
equipment manufacturing facilities of Dril-Quip, Inc. (DQI), located in 
Houston, 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 
May 10, 1993.

The DQI facilities consist of two sites in Houston (Harris County), Texas,
approximately 12 miles northwest of downtown Houston. Site 1: (13.5
acres)-- 13550 Hempstead Highway, Houston, Texas 77040; and, Site 2: (193
acres)--6300 Eldridge Parkway North (north of 13300 W. Little York),
Houston, Texas. The facilities produce offshore and surface oil drilling
and well completion equipment for export and the domestic market.
Foreign-origin materials used in the manufacturing process include: Iron,
steel, or non-alloy casings; drill pipe of iron, non-alloy, or alloy; tubes
of iron, non-alloy or alloy; and, alloy tube/pipe fittings. (Foreign
materials would be admitted under privileged foreign status (19 CFR

Zone procedures would exempt DQI from Customs duty payments on the foreign
materials used in export production (70% of output). On domestic sales, the
company would be able to defer Customs duties until finished products are
shipped from the plant. Foreign materials and finished products held for
export would be eligible for an exemption from certain 
state and local ad valorem taxes. The application indicates that the
savings from zone procedures would help improve DQI's international

In accordance with the Board's regulations (as revised, 56 FR 50790-50808,
10- 8-91), a member of the FTZ Staff has been appointed examiner to
investigate the application and report to the Board.

Public comment on the application is invited from interested parties.
Submissions (original and three copies) shall be addressed to the Board's
Executive Secretary at the address below. The closing period for their
receipt is July 19, 1993. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period (to August 2, 1993).

A copy of the application and the accompanying exhibits will be available
for public inspection at each of the following locations:
U.S. Department of Commerce District Office, 1 Allen Center, 500 Dallas,
Suite 1160, Houston, TX 77002.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, room 3716,
14th Street & Constitution Avenue, NW., 
Washington, DC 20230.
Dated: May 10, 1993.

John J. Da Ponte, Jr.,

Executive Secretary.

(FR Doc. 93-11771 Filed 5-17-93; 8:45 am)