DEPARTMENT OF COMMERCE
Consolidated Application for Extension of Authority, Expansion, and Removal
Certain Restrictions for Subzones 122D, 122E, and 122H Corpus Christi, TX
Thursday, September 12, 1991
During April-June 1991, the Port of Corpus Christi Authority (PCC)
submitted applications to the Foreign-Trade Zones Board (the Board)
requesting: An indefinite extension of authority and the removal of certain
restrictions applicable to Subzones 122D, 122E, and 122H; the expansion of
Subzones 122E and 122H; and, new manufacturing authority for Subzone 122H.
The applications have been consolidated as a single-docketed case (FTZ
Docket 50-91). The consolidated application was formally filed
September 5, 1991.
In September 1985, the three subzones were approved with restrictions
(Board Order 310, 50 FR 38020, 9/19/85). In two recent Board actions
affecting certain restrictions, the time period for the subzones was
temporarily extended to 9/5/92 (Board Order 536, 8/30/91) and the central
control system restriction was removed (Board Order 529, 56 FR 42310,
Subzone 122D, Gulf Marine Fabricators, Inc. (GMF), produces offshore
platforms and drilling production modules for oil and gas. The duty rates
on the foreign-sourced steel mill products range from 2.8 to 8.0 percent.
Duties on the finished products range from 5.0 to 5.7 percent. GMF has
requested that the Board rescind the export-only restriction, as well as
the requirement that Customs duties be paid on foreign-sourced steel mill
products prior to production activity. This would allow duty exemptions on
foreign-sourced items used to build platforms and modules that are exported
and, in regard to those imported, the election of the finished-product duty
Subzone 122E, Berry Contracting, Inc., is also engaged in construction of
offshore platforms and drilling modules, as well as steel towers and
columns for the oil and gas industries. Berry's request and zone usage are
similar to that of GMF. The applicant further requests that an additional
30.26 acres be added to this subzone site.
Subzone 122H, Hitox Corporation of America, manufactures inorganic
pigments. The original authority involved the manufacture of buff titanium
dioxide pigment (brand name, Hitox) using foreign-sourced synthetic rutile.
(Duty rate on rutile is 5% (temporarily suspended to 1992) and 6% on
finished pigment). Hitox now requests authority to manufacture barytes
under zone procedures. The duty rate on barytes ore is $1.25 per metric
ton, and duties would be paid at this rate on any ores used in producing
items for import (rate for finished barytes is $3.20 per metric ton). Zone
procedures would exempt Hitox from Customs duty payments on the foreign
material used in its exports. Hitox also requests that 10.82 acres be added
to the current subzone.
In accordance with the Board's regulations, an examiners committee has been
appointed to investigate the application and report to the Board. The
committee consists of: John J. Da Ponte, Jr. (Chairman), Foreign-Trade Zones
Staff, U.S. Department of Commerce, Washington, DC 20230; Paul Rimmer,
Deputy Assistant Regional Commissioner, U.S. Customs Service, Southwest
Region, 5850 San Felipe Street, Houston, TX 77057-3012; and, Colonel Brink
P. Miller, District Engineer, U.S. Army Engineer District Galveston, P.O.
Box 1229, Galveston, TX 77553-1229.
Comments concerning the applications are invited in writing from interested
parties. They should be addressed to the Board's Executive Secretary at the
address below and postmarked on or before October 21, 1991.
A copy of the applications and accompanying exhibits will be available
during this time for public inspection at the following locations:
Office of the Port Director,
U.S. Customs Service,
400 Mann Street, suite 305,
Corpus Christi, Texas 78401.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th & Pennsylvania Ave., NW., room 3716,
Washington, DC 20230.
Dated: September 6, 1991.
John J. Da Ponte, Jr.,
[FR Doc. 91-22003 Filed 9-11-91; 8:45 am]