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Foreign-Trade Zones Board
[Docket 50-97]

Foreign-Trade Zone 84--Houston, Texas; Application for Foreign-
Trade Subzone Status: Lyondell Petrochemical Company (Petrochemical 
Complex), Harris County, TX

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Houston Authority, grantee of FTZ 84, 
requesting special-purpose subzone status for the petrochemical complex 
of Lyondell Petrochemical Company (Lyondell), (subsidiary of Atlantic 
Richfield Company) located in Harris County, Texas. 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 16, 1997.
    The Lyondell petrochemical complex (2,236 acres, 700 employees) is 
located at 8280 Sheldon Road on the San Jacinto River (Harris County), 
20 miles east of Houston. The complex consists of two olefins plants 
and related processing units which produce a variety of petrochemical 
feedstocks and motor fuel blendstocks. Petrochemical feedstocks include 
ethylene (3.8 billion-lb. capacity), propylene (2.2 billion-lb. 
capacity), butadiene (615 million-lb. capacity), benzene, toluene, 
xylene, methanol, ethane, propane, butylene, raw pyrolysis gasoline and 
natural gas. Motor fuel blendstocks include MTBE and alkylates. The 
petrochemical complex is integrated with the Lyondell-Citgo Refining 
Company, Ltd. (LCR), refinery in the Houston area, which has an 
application for subzone status pending with the Board (FTZ Doc. 32-97, 
62 FR 24080, 5/2/97). The refinery will supply the petrochemical 
complex with up to 80 percent of its feedstock needs, including 
foreign-status gas oils, naphtha, natural gas condensate, natural 
gasoline and raw pyrolysis gasoline.
    Zone procedures would exempt the petrochemical complex from Customs 
duty payments on the foreign products used in its exports. On domestic 
sales, the company would be able to choose the Customs duty rates that 
apply to certain petrochemical feedstocks (duty-free) by admitting 
incoming foreign inputs (e.g. gas oils, naphtha) in non-privileged 
foreign status. The duty rates on inputs range from 5.25c/barrel to 
10.5c/barrel. Under the FTZ Act, certain merchandise in FTZ status is 
exempt from ad valorem inventory-type 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 29, 1997. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to September 15, 1997).
    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 1160, 500 
Dallas, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th and Pennsylvania Avenue, NW., 
Washington, DC 20230

    Dated: June 18, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-17052 Filed 6-27-97; 8:45 am]