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	U.S. DEPARTMENT OF COMMERCE
	FOREIGN-TRADE ZONES BOARD
	ORDER NO. 863
 
	GRANT OF AUTHORITY FOR SUBZONE STATUS

	BASIS PETROLEUM, INC.
	(Oil Refinery)
	TEXAS CITY, TEXAS


Pursuant to its authority under the Foreign-Trade Zones Act of June 18, 
1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board 
(the Board) adopts the following Order:

WHEREAS, by an Act of Congress approved June 18, 1934, an Act "To 
provide for the establishment . . . 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 to grant to 
qualified corporations the privilege of establishing foreign-trade 
zones in or adjacent to U.S. Customs ports of entry;

WHEREAS, the Board's regulations (15 CFR Part 400) provide for the 
establishment of special-purpose subzones when existing zone facilities 
cannot serve the specific use involved;

WHEREAS, an application from the Texas City Foreign Trade Zone 
Corporation, grantee of Foreign-Trade Zone 199, for authority to 
establish special-purpose subzone status at the oil refinery complex 
of Basis Petroleum, Inc., in Texas City, Texas, was filed by the Board 
on April 11, 1996, and notice inviting public comment was given in 
the Federal Register (FTZ Docket 29-96, 61 FR 17875, 4-23-96); and, 

WHEREAS, the Board adopts the findings and recommendations of the 
examiner's report, and finds that the requirements of the FTZ Act and 
Board's regulations would be  satisfied, and that approval of the 
application would be in the public interest if approval is subject to 
the conditions listed below;

NOW, THEREFORE, the Board hereby authorizes the establishment of a 
subzone (Subzone 199C) at the oil refinery of Basis Petroleum, Inc., in 
Texas City, Texas, at the location described in the application, 
subject to the FTZ Act and the Board's regulations, including 400.28, 
and subject to the following conditions:

1.	Foreign status (19 CFR  146.41, 146.42) products consumed as 
fuel for the refinery shall be subject to the applicable duty rate.

2.	Privileged foreign status (19 CFR  146.41) shall be elected 
on all foreign merchandise admitted to the subzone, except that 
non-privileged foreign (NPF) status (19 CFR  146.42) may be elected 
on refinery inputs covered under HTSUS Subheadings # 2709.00.1000 - 
# 2710.00.1050, # 2710.00.2500 and # 2710.00.4500 which are used in 
the production of:

	-petrochemical feedstocks and refinery by-products (examiners 
	report,	Appendix C);
	-products for export; and,
	-products eligible for entry under HTSUS # 9808.00.30 and 
	9808.00.40  (U.S. Government purchases).

3.	The authority with regard to the NPF option is initially 
granted until September 30, 2000, subject to extension. 


Signed at Washington, DC, this ______ day of ____________ 1996.




__________________________________
Robert S. LaRussa
Acting Assistant Secretary of Commerce
   for Import Administration
Alternate Chairman
Foreign-Trade Zones Board


ATTEST:_________________________
            John J. Da Ponte, Jr.
            Executive Secretary