[Federal Register Volume 63, Number 133 (Monday, July 13, 1998)]
[Notices]
[Page 37515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18600]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 35-98]


Foreign-Trade Zone 122--Corpus Christi, Texas; Application for 
Foreign-Trade Subzone Status; Ultramar Diamond Shamrock Corporation; 
Oil Refinery

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Corpus Christi Authority, grantee of FTZ 
122, requesting special-purpose subzone status for the oil refinery and 
petrochemical complex of Diamond Shamrock Refining Company L.P. (an 
affiliate of Ultramar Diamond Shamrock Corporation), located in Three 
Rivers, 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 30, 1998.
    The refinery and petrochemical complex (463 acres, 300 employees) 
is located at 301 Leroy Street on the Frio River, Three Rivers (Live 
Oak County), Texas, some 75 miles northwest of Corpus Christi. The 
refinery (90,000 BPD) is used to produce fuels and petrochemical 
feedstocks. Fuel products include gasoline, jet fuel, distillates, 
residual fuels, naphthas and motor fuel blendstocks. Petrochemical 
feedstocks and refinery by-products include methane, ethane, propane, 
liquid natural gas, propylene, ethylene, butylene, butane, butadiene, 
cumene, benzene, toluene, xylene, petroleum coke, asphalt and sulfur. 
Some 90-95 percent of the crude oil (99 percent of inputs), and some 
motor fuel blendstocks are sourced abroad.
    Zone procedures would exempt the refinery 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 and refinery by-products 
(duty-free) by admitting incoming foreign crude oil and natural gas 
condensate in non-privileged foreign status. The duty rates on inputs 
range from 5.25 cents/barrel to 10.5 cents/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 
September 11, 1998. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to September 28, 1998.)
    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, 222 N. Main, 
Suite 450, San Antonio, Texas 78212
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW, 
Washington, DC 20230

    Dated: July 2, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-18600 Filed 7-10-98; 8:45 am]
BILLING CODE 3510-DS-P