|U.S. Foreign-Trade Zones Board|
June 14, 2004
Mr. Mike Chen
US Customs and Border Protection
Regulatory Audit Division
Houston Field Office, Suite 1050
2350 N. Sam Houston Pkwy East
Houston, TX 77032
Dear Mr. Chen:
I have reviewed your request for a determination regarding whether certain activity is within the standard scope of authority for oil refinery subzones. Oil refinery subzones are subject to certain standard restrictions regarding finished products that can be attributed to crude oil in NPF status.
Your request for a scope determination regards the shipment of NPF status crude out of a refinery subzone for entry. While crude is not listed in the standard appendix of products that can be attributed to NPF status feedstocks, the appendix applies to products that have been manufactured or processed in the subzone. In general, storage can occur within existing zone sites without the specific approval of the FTZ Board. Likewise, a refinery subzone can store crude oil and make entry on crude at the time it is shipped from the refinery without violating the standard refinery restrictions because the crude was not involved in production activity.
It appears that the activity you described, the shipment of crude in NPF status from a refinery subzone, is within the existing scope of authority for oil refinery subzones. If you have any further questions, please call me or Ms. Liz Whiteman at (202) 482-2862.