Import Administration
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last update: September 2002 

Foreign-Trade Zones Board
[Docket 58-96]

Foreign-Trade Zone 86, Tacoma, Washington, Proposed Foreign-Trade
Subzone; Texaco, Inc. (Oil Refinery Complex), Skagit County, Washington

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Port of Tacoma (Washington), grantee of FTZ 86, requesting special-purpose subzone status for the oil refinery complex of Texaco Refining and Marketing, Inc. (wholly-owned subsidiary of Texaco, Inc.), located in Skagit County (Anacortes area), Washington. 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 July 17, 1996.

The refinery complex (143,000 BPD, 400 employees), including a pipeline corridor and marine terminal, is located on a 640-acre site at 600 South Texas Road, Skagit County, Washington, on the Puget Sound, some 2 miles east of Anacortes (60 miles north of Seattle).

The refinery is used to produce fuels and petrochemical feedstocks. Fuels produced include gasoline, jet fuel, distillates, residual fuels and naphthas. Petrochemicals and refinery by-products include methane, ethane, propane, propylene, ethylene, benzene, toluene, xylene, butane, petroleum coke, asphalt and sulfur. Some 19 percent of the crude oil (97 percent of inputs), and some feedstocks and motor fuel blendstocks are sourced abroad.

Zone procedures would exempt the refinery 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, natural gas condensate). The duty rates on inputs 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 September 24, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period (to October 9, 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 Export Assistance Center, 2001 6th Ave., Suite 650, Seattle, Washington 98121 Office of the Executive Secretary, Foreign-Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW., Washington, DC 20230

Dated: July 18, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-19063 Filed 7-25-96; 8:45 am]