U.S. Foreign-Trade Zones Board

July 28, 1993

Mr. James F. Maroney III
Vice President, Secretary
      and General Counsel
Tuboscope Vetco International
2835 Holmes Road
P.O. Box 808
Houston, Texas 77001

Dear Mr. Maroney:

This is in response to your request for a determination as to whether the storage under zone procedures of pipe and tubing which would later be entered for consumption is within the scope of authority for Subzone 84I at the Tuboscope Vetco International facility in Houston, Texas (Board Order 609, 57 FR 57729, 12/7/92).

We have reviewed the matter, and I have determined pursuant to 400.32(c) of the FTZ Board's regulations that the storage of such products for import appears to be within the scope of authority for the subzone. The Board's approval of "subzone status for export activity" refers only to manufacturing or processing activity. All zones generally are permitted to conduct under zone procedures storage operations for products for eventual importation without further Board approval, provided that the requirements of the Customs regulations and the FTZ Board's regulations are satisfied. With regard to subzones, storage operations should be related to the business activity for which subzone status was approved.

It appears that the storage operation to which you refer could otherwise be conducted within a general-purpose zone without further Board review, and the products involved are related to Vetco's business. Therefore, I have found that the proposed activity storage of pipe and tubing for import is within Subzone 84I's scope of authority.

If you have any further questions, you may contact me at (202) 482-2862.



Dennis Puccinelli
Acting Executive Secretary