[Federal Register Volume 62, Number 125 (Monday, June 30, 1997)] [Notices] [Page 35152] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-17052] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE 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] BILLING CODE 3510-DS-P