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DEPARTMENT OF COMMERCE
[Docket 45-96]


Foreign-Trade Zone 70--Detroit, Michigan; Application for Subzone
Status, Marathon Oil Company (Oil Refinery Complex), Wayne County, MI

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Greater Detroit Foreign Trade Zone, Inc., grantee of FTZ 70, requesting special-purpose subzone status for the oil refinery complex of Marathon Oil Company, located in Wayne County (Detroit area), Michigan. 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 28, 1996.

The refinery complex (246 acres, 365 employees) consists of 4 sites and connecting pipelines in Wayne County (Detroit area), Michigan: Site 1 (183 acres)--main refinery complex (70,000 BPD) located at 1300 South Fort Street on the Detroit River, Detroit and Melvindale ; Site 2 (15 acres)--asphalt storage facility located at 301 South Fort Street on the Rouge River, 1 mile east of the refinery, Detroit; Site 3 (4 acres)--finished product storage facility, located on Fordson Island in the Rouge River, 2 miles northeast of the refinery, Dearborn; Site 4 (44 acres)--underground LPG storage cavern, located at 24400 Allen Road, 12 miles south of the refinery, Woodhaven.

The refinery complex is used to produce fuels and petrochemical feedstocks. Fuels produced include gasoline, jet fuel, naphthas, distillates, and residual fuels. Petrochemical feedstocks and refinery by-products include methane, ethane, butane, propane, propylene, sulfur, asphalt, carbon black oil and petroleum coke. About 48 percent of the crude oil (91 percent of inputs) and some feedstocks and motor fuel blendstocks used in producing fuel products are sourced abroad.

Zone procedures would exempt the operations involved from Customs duty payments on the foreign products used in its exports. On domestic sales, the company would be able to choose the finished product duty rate (nonprivileged foreign status--NPF) on certain petrochemical feedstocks and refinery by-products (duty-free) instead of the duty rates that would otherwise apply to the foreign-sourced inputs (e.g., crude oil). The duty rates on crude oil range from 5.25 cents/barrel to 10.5 cents/barrel. 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 August 5, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period (to August 20, 1996).

A copy of the application and accompanying exhibits will be available for public inspection at each of the following locations:

U.S. Department of Commerce District Office, 1140 McNamara Building, 477 Michigan Ave., Detroit, Michigan 48226 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 29, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-14158 Filed 6-5-96; 8:45 am]