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last update: September 2002 

[Federal Register: May 24, 1994]


Foreign-Trade Zones Board
[Docket 20-94]

Proposed Foreign-Trade Subzone; Chevron U.S.A. Products Company
(Oil Refinery); Philadelphia, PA

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Philadelphia Regional Port Authority, grantee of FTZ
35, requesting special-purpose subzone status for the oil refinery
complex of Chevron U.S.A. Products Company (Chevron), a wholly owned
subsidiary of Chevron Corporation, located in Philadelphia,
Pennsylvania. 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
May 11, 1993.
    The refinery complex (707 acres, 1,195 employees) consists of four
sites and connecting pipelines, located near the junction of the
Delaware and Schuylkill Rivers in southwestern Philadelphia,
Pennsylvania: Site 1 (372 acres)--175,000 BPD refinery, Lanier Avenue,
east side of the Schuylkill River; Site 2 (203 acres)--Schuylkill River
Tank Farm, west side of the Schuylkill River across from the refinery;
Site 3 (116 acres)--Darby Creek Tank Farm, Falcon Hook Rd., 3 miles
northwest of the refinery; and Site 4 (16 acres)--Hog Island Wharf, 3
miles southwest of the refinery, on the Delaware River, adjacent to the
Philadelphia International Airport. The wharf, storage facilities and
pipelines operate as an integral part of the refinery. The refinery is
used to produce fuel and chemical products. Fuels produced include
gasoline, jet fuel, heavy fuel oil, diesel fuel, and light naphtha.
Chemical products produced include liquified petroleum gas and butane;
petrochemical feedstocks, such as cumene; and refinery byproducts, such
as sulfur. All of the crude oil (95 percent of inputs) and certain
blendstocks are sourced from abroad.
    The application requests authority to use zone procedures primarily
for export activity at this time and indicates that Chevron will accept
approval subject to the standard oil refinery restrictions (privileged
foreign status on incoming foreign merchandise and full duties on fuel
consumed). At the outset, one of the main uses of zone procedures would
involve the refining of foreign crude oil for jet fuel that is sold for
international flights, displacing foreign-sourced jet fuel that is
imported duty- and tax-free under Customs' bonded fuel program.
    Zone procedures would exempt Chevron from Customs duty payments on
the foreign products used in its exports, including jet fuel sold for
international flights. The company would be able to defer Customs
duties on finished products shipped to U.S. markets. (The duty on crude
oil ranges from 5.25 to 10.5 cents/barrel.) Jet fuel sold for
international flights also would be exempt from state sales and excise
    MTBE (methyl tertiary butyl ether) is one of the blendstocks
sourced from abroad. The company would be able to defer Customs duties
on MTBE blended into motor gasoline and shipped to U.S. markets. (The
duty on MTBE is 5.6% ad valorem). The application indicates that the
savings from zone procedures would help improve the refinery's
international competitiveness.
    In accordance with the Board's regulations, a member of the FTZ
Staff has been designated examiner to investigate the application and
report to the Board.
    Public comment is invited from interested parties. Submissions
(original and 3 copies) shall be addressed to the Board's Executive
Secretary at the address below. The closing period for their receipt is
July 25, 1994. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period August 8, 1994.
    A copy of the application and accompanying exhibits will be
available for public inspection at each of the following locations:

U.S. Department of Commerce District Office, suite 201, 660 American
Avenue, King of Prussia, PA 19406.
Office of the Executive Secretary, Foreign-Trade Zones Board, room
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW.,
Washington, DC 20230.

    Dated: May 13, 1994.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 94-12653 Filed 5-23-94; 8:45 am]