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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 51-96]


Foreign-Trade Zone 47--Boone County, Kentucky; Application for
Subzone Status, Ashland Inc. (Oil Refinery Complex), Boyd and Daviess
Counties, Kentucky

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Greater Cincinnati Foreign Trade Zone, Inc., grantee of FTZ 47, Boone County, Kentucky, area, requesting special-purpose subzone status for the oil refinery complex of Ashland Inc., located at sites in Boyd and Daviess Counties, Kentucky. 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 June 17, 1996.

The refinery complex (1,250 employees) consists of 2 sites and connecting pipelines in northern Kentucky: Site 1 (1,029 acres)--main refinery complex (220,000 BPD capacity) located at the intersection of Interstate Hwy 64 and US Hwy 23 on the Big Sandy River, Boyd County, Kentucky, south of Catlettsburg, including a refined product storage and terminal facility located north of the refinery, across the river in Kenova (Wayne County), West Virginia; Site 2 (30 acres)--Ashland Pipe Line Co. crude oil terminal (4 tanks/771,000 barrel capacity) located at 1046 Pleasant Valley Road, Daviess County, east of Owensboro, Kentucky. The refinery, terminals and pipelines operate as an integrated refinery complex.

The refinery complex is used to produce fuels and petrochemical feedstocks. Fuel products produced include gasoline, jet fuel, distillates, diesel fuel, fuel oil, naphtha and MTBE. Petrochemical feedstocks and refinery by-products include methane, ethane, propane, benzene, toluene, xylene, cumene, propylene, ethylene, butylene, butadiene, isobutene-isoprene, naphthalene, carbon black oil, paraffin waxes, sulfur and asphalt. Some 70 percent of the crude oil (97 percent of inputs), and some feedstocks and motor fuel blendstocks used in producing fuel products may be sourced abroad.

Zone procedures would exempt the operations involved from Customs duty payments on the foreign products used in its exports. On domestic sales, the company would be able to choose the finished product duty rate (nonprivileged foreign status--NPF) on certain petrochemical feedstocks and refinery by-products (duty-free) instead of the duty rates that would otherwise apply to the foreign-sourced inputs (e.g., crude oil, natural gas condensate). The duty rates on inputs ranges from 5.25 cents/barrel to 10.5 cents/barrel. Foreign merchandise would also be exempt from state and local ad valorem taxes. 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 August 26, 1996. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period (to September 9, 1996).

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, Export Assistance Center, Suite 807, 405 Capitol Street, Charleston, West Virginia 25301 Office of the Executive Secretary, Foreign-Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW., Washington, DC 20230.

Dated: June 18, 1996. John J. Da Ponte, Jr., Executive Secretary. [FR Doc. 96-16190 Filed 6-25-96; 8:45 am]