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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 10-82] 
                                  47 FR 16058 
                                 April 14, 1982 
Foreign-Trade Zone No. 7, Mayaguez, Puerto Rico; Application for Subzone  
TEXT: Notice is hereby given that an application has been submitted to the 
Foreign-Trade Zones Board (the Board) by the Puerto Rico Industrial 
Development Company, Inc. (PRIDCO), an agency of the Commonwealth of 
Puerto Rico and grantee of Foreign-Trade Zone 7, requesting authority to 
establish a foreign-trade subzone for Commonwealth Oil Refining Company, 
Inc. near Penuelas, Puerto Rico, adjacent to the Ponce Customs port of 
entry. 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 April 
2, 1982. The applicant is authorized to make this proposal under Joint 
Resolution No. 26 of the Commonwealth of Puerto Rico Legislature, approved 
June 19, 1958. 
   On June 27, 1960, PRIDCO received authority from the Board to establish 
a foreign-trade zone project in Mayaguez, Puerto Rico (25 FR 6311, 7-2-60).
Covering 42 acres in an industrial park setting, the zone offers over 
230,000 square feet in 12 buildings for manufacturing and warehousing 
activities. Five manufacturing firms employing 400 persons utilized zone 
facilities in fiscal year 1980. 
   PRIDCO now requests subzones status for the petroleum refining and 
petrochemical complex of the Commonwealth Refining Company, Inc. (CORCO)
near Penuelas. CORCO is an independent refiner with its headquarters in San 
Antonio, Texas. The 695-acre Penuelas complex is the firm's only production 
facility. It includes a 100,000 barrel per day crude oil refinery which 
produces gasoline and fuel oil, as well as three petrochemical plants which 
produce intermediate industrial products such as benzene, toluene,and 
cyclohexane. The facility has been a major supplier of energy and 
petrochemcial products for Puerto Rico since its start-up in 1956. 
   Since 1979, CORCO has seen a major reduction in its share of the domestic
mainland and Puerto Rican markets, with a resulting severe cut-back in 
operations at the complex. Employment has dropped from a peak of 1400 to 
200 today. In its efforts to revive the facility and to achieve a 
profitable level of capacity utilization, the company has set its sights 
on the export market, mainly through processing agreements which would 
help develop long-term supply relationships. Because it is dependent on 
foreign suppliers for its feedstocks, CORCO desires subzone status to 
facilitate the Customs phase of its operations.  
   Zone procedures will allow CORCO to avoid duty and drawback on its 
exports. On its domestic sales the company can defer payment of duties and 
take advantage of lower duty rates available to importers of refined 
products. It will also utilize subzone status to provide assurances to 
foreign crude oil suppliers that CORCO will be able to fulfill long-term 
commitments under processing agreements. 
   In accorance with the Board's regulations, an examiners committee has 
been appointed to investigate the application and report to the Board. The 
committee consists of: Dennis Puccinelli (Chairman), Foreign-Trade Zones 
Staff, U.S. Department of Commerce, Washington, D.C. 20230; Charles W. 
Winwood, Director (Inspection and Control), U.S. Customs Service, Region 
IV, 99 S.E. 5th Street, Miami, Florida 33131; and Colonel Alfred B 
Devereaux, District Engineer, U.S. Army Engineer District Jacksonville, 
P.O. Box 4970, Jacksonville, Florida 32232.  
   Comments concerning the proposed subzone are invited in writing from 
interested persons and organizations. They should be addressed to the 
Board's Executive Secretary at the address below and postmarked on or 
before May 12, 1982. 
   A copy of the application is available for public inspection at each 
of the following locations: 
   U.S. Dept. of Commerce District Office, 
Room 659, Federal Building, 
Avenida Chardon, 
San Juan, Puerto Rico 00918. 
   Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, 
14th and Constitution Avenue, NW., Room 3721, 
Washington, D.C. 20230. 
   Dated: April 8, 1982. 
John J. Da Ponte, Jr., 
   Executive Secretary, Foreign-Trade Zones Board.   
[FR Doc. 82-10154 Filed 4-13-82; 8:45 am] 
   BILLING CODE 3510-25-M