[Federal Register Volume 60, Number 81 (Thursday, April 27, 1995)]
[Rules and Regulations]
[Pages 20628-20642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10226]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 146
[T.D. 95-35]
RIN 1515-AB20
Petroleum Refineries in Foreign Trade Subzones
AGENCY: Customs Service, Department of the Treasury.
ACTION: Final rule.
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SUMMARY: This document amends the Customs Regulations by adding special
procedures and requirements governing the operations of crude petroleum
refineries approved as foreign trade subzones, in implementation of
section 9002 of the Technical and Miscellaneous Revenue Act of 1988,
which amended the Foreign Trade Zones Act to make specific provision
for petroleum refinery subzones.
EFFECTIVE DATE: These regulations are effective October 24, 1995.
FOR FURTHER INFORMATION CONTACT: For Legal aspects: Bill Rosoff, Chief,
Entry Rulings Branch (202)482-7040. For Operational aspects: Louis
Hryniw, Regulatory Audit (202)927-1100.
SUPPLEMENTARY INFORMATION:
Background
On August 10, 1992 (57 FR 35530), Customs published a document in
the Federal Register proposing to amend the Customs Regulations to add
special procedures and requirements governing the operations of crude
petroleum refineries approved as foreign trade subzones, in
implementation of section 9002 of the Technical and Miscellaneous
Revenue Act of 1988 which amended the Foreign Trade Zones Act, 19
U.S.C. 81c(d), to make specific provision for petroleum refinery
subzones.
Briefly, as stated in the August 10, 1992, notice of proposed
rulemaking, the statutory amendment obviates the need to determine
exactly when and where in the manufacturing process crude and other
feedstocks become other products. In so doing, it permits refiners as
well as Customs to assess the relative value of such multiple products
at the end of the manufacturing period during which such products were
produced, when the actual quantities of these products resulting from
the refining process can be measured with certainty. Also, the
amendment permits the products refined in a subzone during a
manufacturing period to be attributed to a given crude or other
feedstocks introduced into production during the period, to the extent
that such products were producible (could have been produced) therefrom
in the quantities removed from the subzone.
As a result of extensive and varied input received from the oil
refinery and foreign trade zone communities, as well as from other
interested parties, in response to the initial notice of proposed
rulemaking, Customs published a significantly revised notice on March
4, 1994 (59 FR 10342) and solicited additional public comment on the
revised proposed rule.
The following discussion includes a summary of the various comments
received in response to the March 4, 1994, notice of proposed
rulemaking, together with an explanation and analysis regarding the
sections to be added, eliminated or further revised. The final rule as
revised is thereafter set forth.
Discussion of Comments
Comment: Two commenters suggested deletion of proposed
Sec. 146.92(a)(1), (2) and (3) because it is already covered in
proposed Sec. 146.93.
Customs Response: Customs agrees and, therefore, these three
subsections have been deleted.
Comment: Three commenters suggested that the definition in proposed
Sec. 146.92(b) be expanded to include products from natural gas
production and blendstocks and, additionally, that the definition state
that Customs may add other merchandise to this definition by way of a
ruling.
Two commenters suggested the inclusion of ``other hydrocarbon
feedstocks, light olefins, and other aromatics and their derivatives''
in this definition.
Customs Response: Regarding the suggestion that this definition may
be modified by a ruling, Customs regulations may not be modified or
changed by way of a ruling. Any changes to the regulations would have
to follow regulatory procedures. It is not clear to Customs how natural
gas production and blendstocks apply to producibility. Any change to
T.D. 66-16 to include feedstocks or products not listed must include
supporting records and a technical explanation of the change.
Therefore, this suggestion has not been adopted.
Comment: One commenter suggested that the word ``means'' in
proposed Sec. 146.92(c) be changed to ``is based on''. Another
commenter suggested deletion of ``utilizing T.D. 66-16 (see
Sec. 146.92(h)), and'' and insertion of ``volumetric'' between ``any''
and ``loss''.
Customs Response: The suggested change has been adopted with
respect to addition of the word ``volumetric'' and Sec. 146.92(c) has
been reworded. Customs disagrees that the phrase ``utilizing T.D. 66-
16'' should be deleted. The word ``means'' should be retained since
this section defines terms for use in this subpart.
Comment: The suggestion was made that proposed Sec. 146.92(d) be
re-worded to read as follows:
Final product means any product that is produced in a petroleum
refinery subzone from feedstock processed therein, and thereafter
removed therefrom or consumed within the zone.
Two commenters suggested that the phrase ``and or hydrocarbon
product'' be inserted after ``product'' and before ``that''. Another
commenter suggested that the phrase ``lost or destroyed in the subzone
as provided in Sec. 146.53(c)(1)(iv)'' be inserted after ``therefrom''.
Customs Response: The first suggestion regarding the rewording of
Sec. 146.92(d) has been adopted. The use of attribution by records
requires that the amounts removed or consumed actually be measured;
such method is not acceptable to account for unmeasured losses. This
suggestion has not been adopted. It is Customs position that 19 U.S.C.
81c(d) applies only to crude petroleum products and not to hydrocarbons
in general. Therefore, this suggestion was not adopted.
Comment: Two commenters suggested that the words ``or
manufacturer'' be inserted after ``refiner'' and that the words
``production facility'' be inserted after ``refinery'' in proposed
Sec. 146.92(e). One commenter suggested deletion of the phrase ``for
which * * * subzone'' because attribution is addressed
[[Page 20629]] elsewhere in the regulations. Another commenter
recommended that the word ``for'' after ``month'' be deleted and
replaced with ``within''.
Customs Response: Regarding the first suggestion, the purpose of
these regulations is to implement 19 U.S.C. 81c(d). That statutory
provision only applies to crude petroleum refineries in foreign trade
zones. Therefore, there is no basis to extend these regulations to
``production facilities.'' The suggestion to remove the reference to
final products consumed or removed from the subzone has not been
adopted since the statute provides an attribution formula to be used at
specific subzones. The word ``for'' is shorter than ``within'' and
there is no change in substance.
Comment: One commenter proposed addition of a definition of
``Petroleum'' to read as follows:
Petroleum means a feedstock listed on the top line of the tables
set forth in T.D. 66-16 and includes any hydrocarbon feedstock produced
from natural gas liquids or comprised of natural gas liquids.
Customs Response: Customs disagrees that such a definition is
necessary and, therefore, has not included this definition in the final
rule.
Comment: Two commenters recommended that the phrase ``listed on the
top line of the tables set forth in T.D. 66-16'' be replaced with ``as
defined herein into final products as defined herein''. One commenter
suggested that the following phrase be added at the end of proposed
Sec. 146.92(f):
* * * and includes any facility that processes a hydrocarbon
feedstock utilizing one or more of the units in the definition of a
refinery operating unit.
Two other commenters advocated re-naming this definition
``Petroleum refinery or production facility'' and then adding the
following:
Production facility means a facility that primarily converts
hydrocarbon feedstocks, light olefins, aromatics and their derivatives
into primarily light olefin products such as ethylene or propylene or
other products such as toluene, benzene, or derivatives of olefins and
aromatic products such as cyclohexane, acrylates, alcohols,
caprolactam, or other petrochemical products.
Customs Response: As previously stated, there is no authority to
extend the application of 19 U.S.C. 81c(d) beyond a crude petroleum
refinery.
Comment: Two commenters proposed deletion of ``market'' and ``each
month'' from the definition in proposed Sec. 146.92(g).
Customs Response: Customs disagrees with this suggestion. A refiner
has the option to use the market value of each product or a published
standard value such as Platts.
Comment: Two commenters suggested addition of the phrase ``is an
inventory control'' before the word ``method'' in proposed
Sec. 146.92(h) and replacement of the phrase ``set forth in T.D. 66-
16'' with ``as verified and adopted by the Secretary of the Treasury''.
Customs Response: The suggested changes have not been adopted.
Producibility is not an inventory control because it does not reflect
actual feedstocks in inventory at any given time. It is a statutory
method to account for import duties owed on privileged foreign
feedstocks. The Industry Standards of Potential Production are set
forth in T.D. 66-16 and, even if that Treasury Decision is modified in
the future, the reference will always be to ``T.D. 66-16 as modified by
T.D.----''.
Comment: Four commenters suggested replacement of the definition in
proposed Sec. 146.92(i) with the following language:
Relative value means a factor assigned to each final product
attributed to the separation from a privileged foreign feedstock equal
to the ratio of its ``price of product'' to the average ``price of
product'' for all final products at the time of separation.
Customs Response: Customs disagrees with this suggestion because
``relative value'' is a dollar value assigned to products and not a
factor. Therefore, the definition remains as proposed.
Comment: Two commenters suggested addition of ``or production
operating unit'' to the title of Sec. 146.92 and insertion of the
following language in the definition:
Production operating unit means a unit in a production facility in
which feedstock is processed such as a thermal cracking furnace or
distillation tower.
Four commenters suggested deletion of proposed Sec. 146.92(j)
(definition of ``Refinery operating unit'') in its entirety.
Alternatively, one commenter suggested the definition should read as
``a facility within a refinery wherein feedstocks lose their unique
physical identity or may undergo changes in physical characteristics''.
Another commenter agreed with the proposed definition but also
suggested adding the words, ``including, but not limited to, API
gravity, distillation traits, chemical characteristics, etc.'' Yet
another commenter proposed deletion of any reference to ``operating
unit'' in this section and in proposed Secs. 146.93(a) (1) and (4),
146.93(b), 146.94(a), and 146.96(a)(1).
Customs Response: Customs agrees with the position asserted by the
commenters that the manufacture and manipulation of feedstocks begins
on admission to a refinery subzone because a refiner deliberately mixes
various feedstocks on admission to achieve optimum characteristics for
processing. For that reason, proposed Sec. 146.92(j) is unnecessary and
has been deleted. Based on the assertion by refiners that the mixing
occurs on admission, the admission of feedstock in nonprivileged status
will be binding and a post-admission request for privileged status will
be denied unless the refiner establishes that the feedstock was not
manipulated or manufactured to effect a change in tariff
classification. A new Sec. 146.93(e) has been added to reflect this
position.
Comment: Two commenters suggested revising proposed Sec. 146.92(k)
to read as follows:
Time of separation in the case of privileged foreign feedstock
means the manufacturing period in which such feedstock is deemed to
have been separated into two or more final feedstocks.
Customs Response: Customs disagrees with this suggestion since it
merely adds words without changing the substance of the definition.
Comment: Three commenters proposed inclusion of the following
language in proposed Sec. 146.93(a) immediately following
``Attribution'' and before ``(1) Producibility'':
(a) Attribution. All final products removed from or consumed within
a petroleum refinery zone must be attributed to feedstock processed
within said petroleum refinery zone in the current or prior
manufacturing period. Attribution must be based on records maintained
by the operator. Attribution may be made by applying one of the
authorized inventory control methods set forth in this section. Records
may be maintained on a weight or volume basis.
Two commenters suggested that the phrase ``have been introduced
into a refinery operating unit'' in proposed Sec. 146.93(a)(1) be
replaced with ``are eligible for attribution, as set forth in paragraph
(b), of this section * * *''. Another commenter proposed replacement of
the same phrase with ``are eligible for attribution, as set forth in
paragraph (a)(4) of this section * * *''. A third commenter recommended
replacement of the same phrase with the words ``are eligible for
attribution * * *''.
Two other commenters suggested the inclusion of the phrase ``or
production operating unit'' after ``refinery operating unit''.
Customs Response: Because Customs accepts the assertions of
refiners that [[Page 20630]] they begin to manipulate all feedstocks on
admission to achieve an optimum set of characteristics for processing,
Customs has modified Sec. 146.93(a)(1) accordingly.
Comment: Two commenters recommended that ``[i]n addition, an
operator may use such other inventory control method(s) as approved by
the Secretary of the Treasury that protects the revenue'' be added at
the end of proposed Sec. 146.93(a)(3).
Customs Response: Customs disagrees. The provision for additional
methods is covered by Sec. 146.96.
Comment: Two commenters suggested re-designating proposed
Sec. 146.93(a)(4) as (b). The commenters propose the section should
read as follows:
(b) Feedstock eligible for attribution. Feedstock admitted into the
refinery zone or subzone is eligible for attribution to any final
product in accordance with the operator's inventory control method.
One commenter suggested the entire proposed section be deleted and
replaced with:
(4) Feedstock eligible for attribution. Feedstock admitted into the
refinery zone or subzone is eligible for attribution to the extent that
such feedstock is not remaining in tank inventory at the end of the
manufacturing period as determined in accordance with the operator's
zone procedure. For a given manufacturing period, the quantity of
feedstock eligible for attribution may be computed as beginning
inventory, plus receipts less shipments of feedstock out of the zone,
minus ending inventory.
Customs Response: Customs has incorporated some of the suggested
language and, therefore, Sec. 146.93(a)(4) (redesignated as
Sec. 146.93(b)) has been reworded.
Comment: Four commenters suggested redesignating proposed
Sec. 146.93(b) as (c) and replacing the phrase ``introduced into a
refinery operating unit'' with ``eligible for attribution under
Sec. 146.93(b) * * *''.
Customs Response: Customs agrees and has so modified the wording of
this section (redesignated as Sec. 146.93(d)).
Comment: Four commenters suggested redesignating proposed
Sec. 146.93(c) as (d), and deletion of the sentence ``(a)d valorem * *
* relative value calculation'' because duties are not relevant to the
relative value calculation.
Customs Response: Customs disagrees and this language has been
retained.
Comment: One commenter recommended deletion of proposed
Sec. 146.94(a) in its entirety. Another commenter suggested that a
refiner should only be required to maintain appropriate inventory
records to substantiate feedstocks processed and remaining in ending
inventory. Two other commenters suggested that the section should read
as follows:
(a) Feedstock processed. The operator must maintain appropriate
inventory records during the manufacturing period to substantiate the
feedstock eligible for attribution under Sec. 146.93(a)(4) and in
accordance with the operator's selected inventory control method.
Another variation was offered by a commenter who suggested the
section should read as follows:
(a) Feedstock processed. The operator shall maintain appropriate
inventory records to establish the quantity of feedstock eligible for
attribution under Sec. 146.93(a)(4) during each manufacturing period.
Customs Response: Customs disagrees that this subsection should be
deleted in its entirety. However, Customs does agree with the suggested
changes and Sec. 146.94(a) has been reworded to reflect the refiners'
assertion that feedstocks are manipulated or manufactured on admission.
Comment: Two commenters proposed replacement of the language in
proposed Sec. 146.94(b) with the following:
The operator shall maintain records to establish the quantity of
products consumed in or removed from the zone or subzone during the
entry period.
Another commenter suggested replacing this proposed section with:
(b) Final product removed, consumed, lost or destroyed. The
operator shall maintain appropriate inventory records to establish the
quantity of final products removed from, consumed in, lost, or
destroyed in the subzone during the manufacturing period.
Customs Response: Customs disagrees with the suggested changes for
the reasons noted in the Customs Response with respect to
Sec. 146.92(d).
Comment: Three commenters suggested deletion of any references to
``week'' in proposed Sec. 146.94(c) and insertion of ``approved entry
period'' instead.
Customs Response: As was explained in the March 4, 1994, Federal
Register notice, while a manufacturing or accounting period may be
greater than a week, there is no authority to permit a consumption
entry covering products removed from a zone to exceed one week. Thus,
the language of Sec. 146.94(c) remains in substance as originally
proposed.
Comment: Two commenters suggested deletion of the phrase ``* * * is
dutiable if entered for consumption unless otherwise exempt from duty''
in proposed Sec. 146.94(d) and that it be replaced with ``shall be
treated as foreign merchandise when entered for consumption''.
Customs Response: The relevancy of this suggested change is not
understood and, therefore, the suggestion has not been adopted. All
merchandise, except for domestic status merchandise, when entered for
consumption is foreign merchandise.
Comment: One commenter suggested that the title to proposed
Sec. 146.94(e) should read ``Attributing gain or loss; acceptable
methods'' instead of the proposed title. Another commenter remarked
that the regulations should specify that determination of gain or loss
may be done either at time of separation (production) or at time of
removal from or consumption in the zone.
Customs Response: Neither of these suggested changes have been
adopted since they merely add words without changing the substance.
Comment: One commenter suggested that the word ``account'' in
proposed Sec. 146.94(e)(1) be replaced with ``attribute''.
Customs Response: Customs disagrees. Attribution refers to matching
actual measured amounts of privileged foreign feedstock consumed in, or
removed from, the subzone refinery in the form of final products
against the limits imposed by T.D. 66-16 or other approved method.
Comment: One commenter proposed insertion of the phrase ``or loss''
after ``volume gain'' in proposed Sec. 146.94(e)(2) and insertion of
the following at the end of the section:
The operator may determine the feedstock factor using values
associated with the total removals from and consumption in the zone or
subzone for the period in lieu of using such values for production
during the period.
Customs Response: Customs agrees with respect to the first
suggestion. Regarding the second suggestion, it is not clear which
``period'' the commenter is referring to. Customs has agreed with prior
comments that the manufacturing period will be up to a calendar month.
Therefore, this change was not adopted.
Comment: One commenter suggested insertion of the following
language at the end of proposed Sec. 146.94(e)(3):
* * * at either:
(A) The time of separation, or
(B) The time of removal from or consumption in the zone or subzone.
Customs Response: Customs disagrees. As noted above, prior
commentors had requested that the [[Page 20631]] manufacturing period
not exceed a calendar month and Customs revised the regulations
accordingly.
Comment: A commenter suggested that deviations from T.D. 66-16 be
provided for.
Customs Response: Customs agrees and has amended Sec. 146.95(a)(3)
to permit deviations from T.D. 66-16 with approval from Customs. It
requires that any such deviation not be inconsistent with any related
claim for drawback under 19 U.S.C. 1313.
Comment: Two commenters advocated incorporation of the entire
proposed Sec. 146.95 into proposed Sec. 146.96.
Customs Response: Customs agrees. Therefore, proposed Sec. 146.96
is now redesignated as Sec. 146.95.
Comment: Three commenters suggested that any references to ``listed
in'' in proposed Sec. 146.95(b) should be replaced with ``provided
for''.
Customs Response: Customs agrees with this suggestion and has so
changed Sec. 146.95(b) (redesignated as Sec. 146.95(a)(2)).
Comment: One commenter suggested the following: replacement of the
words ``using the * * * in T.D. 66-16'' in proposed Sec. 146.96(a)(1)
with the provisions of Sec. 146.95--to be denominated as new
subparagraphs (2) and (3); replacement of the words ``not listed'' with
the words ``not provided for''; and replacement of the reference to
``T.D. 66-16'' with the words ``industry standards of potential
production on a practical operating basis''.
One commenter noted that proposed Sec. 146.96(a)(1) should not be
limited to feedstocks introduced into the refinery operating unit.
Another commenter suggested replacing the phrase ``introduced into a
refinery operating unit'' with ``eligible for attribution''.
A commenter proposed deletion of the sentence ``The operator is * *
* prior period.'' and the phrase ``* * * using the * * * T.D. 66-16''.
Customs Response: Customs does not agree that references to T.D.
66-16 should be deleted from these regulations. Attribution uses the
industry standards of potential production on a practical operating
basis as set forth in T.D. 66-16. End products which are admitted into
the zone and subsequently entered for consumption without any further
processing are eligible for attribution, and the text has been modified
to reflect this. The definition of a refinery in Sec. 146.92(f) refers
to feedstocks and products listed in T.D. 66-16. Thus, to avoid
confusion the same terminology is used here.
Comment: Two commenters suggested deletion of proposed
Sec. 146.96(a)(2) in its entirety. Other commenters suggested moving
the example in this proposed section to the Appendix.
Customs Response: Customs disagrees that Sec. 146.96(a)(2)
(redesignated at Sec. 146.95(b)) should be deleted. However, the
example has been moved to the appendix.
Comment: All of the comments received suggested that the appendix
include some introductory language to the effect that where there is
any inconsistency between an example and the regulation, the regulation
prevails.
Customs Response: Customs agrees and has incorporated this change.
Comment: Four of the comments received suggested that any
references to ``actual production records'' and ``recordation'' in
proposed Sec. 146.96(b) be changed to ``refinery accounting records''
and ``accounting principles'', respectively. The suggestion was also
made that the example be included in the appendix.
Customs Response: Customs disagrees regarding the rewording of
Sec. 146.96(b) (redesignated as Sec. 146.95(c)). Accounting records
could mean records that summarize net activity over a period. Customs
needs to verify actual amounts admitted into, removed from, or consumed
in a refinery subzone. Customs also needs to know if any adjustment was
made to those amounts recorded rather than a period-end summary which
nets the amount without disclosing the existence of any adjustment. The
example is more appropriately placed within the section because it
illustrates the precise principle applied.
Comment: One commenter proposed including introductory language in
proposed Sec. 146.97(a) as follows:
An operator may use the FIFO method of inventory accounting. The
use of this method is illustrated in the appendix to this subpart.
Customs Response: Customs disagrees because Sec. 146.93(a)(3)
already provides that FIFO may be used as an inventory method.
Comment: Most commenters suggested addition of a new Sec. 146.97(d)
to provide as follows:
(d) Appeal to the Commissioner. In the event that the Director,
Office of Regulatory Audit fails to approve a request under paragraph
(c) of this section, an operator may file an appeal with the
Commissioner of Customs for further review. Denial by the Commissioner
of Customs may be appealed to the Court of International Trade under 28
U.S.C. 1581(i).
Customs Response: Customs disagrees with this suggestion. The
proposal would change the statutory scope of jurisdiction of the Court
which is beyond this rulemaking.
Comment: One commenter noted that the proposed regulations do not
address zone-to-zone transfers and accounting for non-privileged
foreign goods.
Customs Response: It is Customs position that these regulations are
not the appropriate vehicle for addressing the issue of accounting for
non-privileged status merchandise. Additionally, these regulations do
not authorize the use of zone-to-zone transfers where the start of a
manufacturing period in one zone refinery would be carried over to
another zone refinery. Customs would consider promulgating regulations
to handle such transfers but only if interested parties submitted
detailed mathematical examples, with dates, showing how such transfers
would be recorded by both the first and subsequent refineries, together
with how the end products that are removed from the last zone would be
entered for consumption, consumed in the zone, or withdrawn for
exportation as defined in Secs. 146.92 (e), (g), (i), and (j). Such a
proposal must discuss the responsibilities of each refiner in the
transfer chain with respect to recordkeeping and duty liability if
there was a failure to maintain these records by one or more of the
transferors.
Comment: A commenter noted that privileged foreign merchandise
``liquidations'' are not liquidations within the meaning of 19 U.S.C.
1500. Customs has the right to correct the classification and
appraisement until the bulletin notice of liquidation is posted and the
protest period begins. Prior to such final notice, the importer has the
right and obligation to change classification when conditions warrant.
Such change of classification does not affect zone status.
Customs Response: Customs basically agrees and has made modified
Sec. 146.65 to clarify this point.
Conclusion
Based on the above, Customs believes that the proposed regulatory
amendments should be adopted as a final rule with the following
changes: Sec. 146.65 is revised to reflect Customs authority under 19
U.S.C. 1500 to fix the final classification of merchandise classified
as privileged merchandise; Sec. 146.91 is revised to eliminate
unnecessary references to eligible feedstock (the second sentence) and
to include a new third sentence to clarify that these regulations do
not address [[Page 20632]] zone-to-zone transfers; in Sec. 146.92, one
definition is deleted (Sec. 146.92(j)) and one definition is added
(Sec. 146.92(k)); Sec. 146.93 is expanded to include privileged status
after admission (paragraph (e)) and new paragraph (b) is added to
clarify feedstock eligible for attribution; in Sec. 146.94, paragraph
(a) is revised to clarify recordkeeping requirements applicable to
feedstocks admitted into the subzone; and in Sec. 146.95, language is
added to subparagraphs (a)(3) (i) and (ii) regarding attribution to
product or feedstock not listed in T.D. 66-16, and to subparagraphs (b)
regarding Customs use of refinery operating records. Other changes to
the proposed regulations involve the renumbering of two provisions
caused by the incorporation of proposed Sec. 146.95 into the text of
proposed Sec. 146.96, which is redesignated as Sec. 146.95; a
corresponding renumbering changes occur in proposed Sec. 146.97, which
is now redesignated as Sec. 146.96. Also, the example contained in
proposed Sec. 146.96(a)(2) is moved to the appendix, which contains
expanded examples.
The Regulatory Flexibility Act and Executive Order 12866
Based on the supplementary information set forth above, pursuant to
the provisions of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.,
it is certified that the regulations will not have a significant
economic impact on a substantial number of small entities. Accordingly,
the regulations are not subject to the regulatory analysis or other
requirements of 5 U.S.C. 603 and 604. This document does not meet the
criteria for a ``significant regulatory action'' as specified in E.O.
12866.
Paperwork Reduction Act
The collection of information requirements contained in these final
regulations have been reviewed and approved by the Office of Management
and Budget (OMB) in accordance with Paperwork Reduction Act of 1980 (44
U.S.C. 3507) under control number 1515-0189. The estimated average
annual burden associated with this collection is 18,824 hours, or 2,353
hours per respondent or recordkeeper. Comments concerning the accuracy
of this burden estimate and suggestions for reducing this burden should
be directed to the U.S. Customs Service, Paperwork Management Branch,
Room 6316, 1301 Constitution Avenue, NW., Washington, DC 20229, or the
Office of Management and Budget, Attention: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503.
Drafting Information
The principal author of this document was Russell Berger,
Regulations Branch, U.S. Customs Service. However, personnel from other
offices participated in its development.
List of Subjects in 19 CFR Part 146
Customs duties and inspection, Entry, Exports, Foreign-trade zones,
Imports, Penalties, Petroleum, Reporting and recordkeeping
requirements.
Amendments to the Regulations
For the reasons stated above, the proposed amendments to part 146
of the Customs Regulations (19 CFR part 146), which were published at
59 FR 10342 on March 1, 1994, are adopted as a final rule as set forth
below.
PART 146--FOREIGN-TRADE ZONES
1. The general authority citation for part 146 is revised to read
as follows:
Authority: 19 U.S.C. 66, 81a-81u, 1202 (General Note 20,
Harmonized Tariff Schedule of the United States (HTSUS)), 1623,
1624.
* * * * *
2. In Sec. 146.65, paragraph (a)(1) is amended by adding a sentence
at the end to read as follows:
Sec. 146.65 Classification, valuation, and liquidation.
(a) Classification.--(1) * * * Notwithstanding the grant of
privileged status, Customs may correct any misclassification of any
such entered merchandise when it posts the bulletin notice of
liquidation under Sec. 159.9 of this chapter.
* * * * *
3. Part 146 is amended by adding a new subpart H and appendix to
read as follows:
Subpart H--Petroleum Refineries in Foreign-Trade Subzones
Sec.
146.91 Applicability.
146.92 Definitions.
146.93 Inventory control and recordkeeping system.
146.94 Records concerning establishment of manufacturing period.
146.95 Methods of attribution.
146.96 Approval of other recordkeeping systems.
Appendix to Part 146--Guidelines for Determining Producibility and
Relative Values for Oil Refinery Zones
Subpart H--Petroleum Refineries in Foreign-Trade Subzones
Sec. 146.91 Applicability.
This subpart applies only to a petroleum refinery (as defined
herein) engaged in refining petroleum in a foreign-trade zone or
subzone. Further, the provisions relating to zones generally, which are
set forth elsewhere in this part, including documentation and document
retention requirements, and entry procedures, such as weekly entry,
shall apply as well to a refinery subzone, insofar as applicable to and
not inconsistent with the specific provisions of this subpart. It does
not cover zone-to-zone transfers in which the fact of removal from one
zone is ignored.
Sec. 146.92 Definitions.
(a) Attribution. ``Attribution'' means the association of a final
product with its source material.
(b) Feedstocks. ``Feedstocks'' means crude petroleum or
intermediate product that is used in a petroleum refinery to make a
final product.
(c) Feedstock factor. ``Feedstock factor'' means the relative value
of final products utilizing T.D. 66-16 (see Sec. 146.92(h)), and which
takes into account any volumetric loss or gain.
(d) Final product. ``Final product'' means any petroleum product
that is produced in a refinery subzone and thereafter removed therefrom
or consumed within the zone.
(e) Manufacturing period. ``Manufacturing period'' means a period
selected by the refiner which must be no more than a calendar month
basis, for which attribution to a source feedstock must be made for
every final product made, consumed in, or removed from the refinery
subzone.
(f) Petroleum refinery. ``Petroleum refinery'' means a facility
that refines a feedstock listed on the top line of the tables set forth
in T.D. 66-16 into a product listed in the left column of the tables
set forth in T.D. 66-16.
(g) Price of product. ``Price of product'' means the average per
unit market value of each final product for a given manufacturing
period or the published standard product value if updated each month.
(h) Producibility. ``Producibility'' is a method of attributing
products to feedstocks for petroleum manufacturing in accordance with
the Industry Standards of Potential Production set forth in T.D. 66-16.
(i) Relative value. ``Relative value'' means a value assigned to
each final product attributed to the separation from a privileged
foreign feedstock based on the ratio of the final product's value
compared to the privileged foreign feedstock's duty.
(j) Time of Separation. ``Time of separation'' means the
manufacturing period in which a privileged foreign status feedstock is
deemed to have been [[Page 20633]] separated into two or more final
products.
(k) Weighted Average. ``Weighted average'' means the relative value
of merchandise, which is determined by dividing the total value of
shipments in a given period by the total quantity shipped in the same
given period. See example in section VI of the appendix to this part.
Sec. 146.93 Inventory control and recordkeeping system.
(a) Attribution. All final products removed from or consumed within
a petroleum refinery subzone must be attributed to feedstock admitted
into said petroleum refinery subzone in the current or prior
manufacturing period. Attribution must be based on records maintained
by the operator. Attribution may be made by applying one of the
authorized methods set forth in this section. Records must be
maintained on a weight or volume basis.
(1) Producibility. The producibility method of attribution requires
that records be kept to attribute final products to feedstocks which
are eligible for attribution as set forth in this section during the
current or prior manufacturing period.
(2) Actual production records. An operator may use its actual
production records as provided for under Sec. 146.95(b) of this
subpart.
(3) Other inventory method. An operator may use the FIFO (first-in,
first-out) method of accounting (see Sec. 191.22(c) of this chapter).
The use of this method is illustrated in the appendix to this part.
(b) Feedstock eligible for attribution. Only a feedstock that has
been admitted into the refinery subzone is eligible for attribution.
For a given manufacturing period, the quantity of feedstock eligible
for attribution may be computed as beginning inventory, plus receipts
less shipments of feedstock out of the subzone, and less ending
inventory.
(c) Consumption or removal of final product. Each final product
that is consumed in or removed from a refinery subzone must be
attributed to a feedstock eligible for attribution during the current
or a prior manufacturing period. Each final product attributed as being
produced from the separation of a privileged foreign status feedstock
must be assigned the proper relative value as set forth in paragraph
(d) of this section.
(d) Relative value. A relative value calculation is required when
two or more final products are produced as the result of the separation
of privileged foreign status feedstock. Ad valorem and compound rates
of duty must be converted to specific rates of duty in order to make a
relative value calculation.
(e) Privileged status after admission. Nonprivileged status
feedstock is eligible for privileged status only if the request shows
to the satisfaction of the Customs Service that there was no
manipulation or manufacture of the feedstock to change its tariff
classification before the request is granted. The absence of such
manipulation or manufacture can be shown by demonstrating that the
feedstock was placed in an empty tank, in a tank that contained only
feedstock with the same nominal specifications or providing a sample
which shows there was no change in tariff status. The existence of
negligible amounts of other feedstocks may be disregarded only in
accordance with Sec. 146.95(b). A request for after-admission
privileged foreign status shall be denied unless the feedstock's tank
records from admission to the time that the request is made accompany
the request. A refiner who makes such a request shall not put any other
feedstock having different nominal specifications into the tank until
the request for privileged status is granted. The Customs Service will
deny or revoke a post-admission request if a refiner fails to retain
the integrity of the feedstock in the tank.
(f) Consistent use required. The operator must use the selected
method, measurement (weight or volume), and the price of product
consistently (see Sec. 146.92(g) of this subpart and paragraph (a) of
this section).
Sec. 146.94 Records concerning establishment of manufacturing period.
(a) Feedstock admitted into the refinery subzone. The operator must
maintain appropriate inventory records during the manufacturing period
to substantiate the feedstock(s) eligible for attribution under
Sec. 146.93(b) and in accordance with the operator's selected
attribution method.
(b) Final product consumed in or removed from subzone. The operator
must record the date and amount of each final product consumed in, or
removed from the subzone.
(c) Consumption or removal. The consumption or removal of a final
product during a week may be considered to have occurred on the last
day of that week for purposes of attribution and relative value
calculation instead of the actual day on which the removal or
consumption occurred, unless the refiner elects to attribute using the
FIFO method (see section II of the appendix to this part).
(d) Gain or loss. A gain or loss that occurs during a manufacturing
period must be taken into account in determining the attribution of a
final product to a feedstock and the relative value calculation of
privileged foreign feedstocks. Any gain in a final product attributed
to a non-privileged foreign status feedstock is dutiable if entered for
consumption unless otherwise exempt from duty.
(e) Determining gain or loss; acceptable methods.--(1) Converting
volume to weight. Volume measurements may be converted to weight
measurements using American Petroleum Institute conversion factors to
account for gain or loss.
(2) Calculating feedstock factor to account for volume gain or
loss. A feedstock factor may be calculated by dividing the value per
barrel of production per product category by the quotient of the total
value of production divided by all feedstock consumed. This factor
would be applied to a finished product that has been attributed to a
feedstock to account for volume gain.
(3) Calculating volume difference. Volume difference may be
determined by comparing the amount of feedstocks introduced for a given
period with the amount of final products produced during the period,
and then assigning the volume change to each final product
proportionately.
Sec. 146.95 Methods of attribution.
(a) Producibility.--(1) General. A subzone operator must attribute
the source of each final product. The operator is limited in this
regard to feedstocks which were eligible for attribution during the
current or prior manufacturing period. Attribution of final products is
allowable to the extent that the quantity of such products could have
been produced from such feedstocks, using the industry standards of
potential production on a practical operating basis, as published in
T.D. 66-16. Once attribution is made for a particular product, that
attribution is binding. Subsequent attributions of feedstock to product
must take prior attributions into account. Each refiner shall keep
records showing each attribution.
(2) Industry standards of potential production. The industry
standards of potential production on a practical operating basis
necessary for the producibility attribution method are contained in
tables published in T.D. 66-16. With these tables, a subzone operator
may attribute final products consumed in, or removed from, the subzone
to feedstocks during the current or a prior manufacturing period.
(3) Attribution to product or feedstock not listed in T.D. 66-16.
(i) For purposes [[Page 20634]] of attribution, where a final product
or a feedstock is not listed in T.D. 66-16, the operator must submit a
proposed attribution schedule, supported by a technical memorandum, to
the appropriate district director. The district director shall refer
the request to the Director, Office of Regulatory Audit (``ORA''), who
will verify the refiner's records and will coordinate with the
Director, Office of Laboratories and Scientific Services (``OLSS'').
The Director, ORA, shall either approve or deny the request. If the
request is approved, the Director, ORA, shall publish a modification of
T.D. 66-16. If an operator elects to show attribution on a
producibility basis, but fails to keep records on that basis, the
operator shall use its actual operating records to determine
attribution and any necessary relative value calculation upon the
Customs Service demand and subject to verification.
(ii) An operator may attribute a final product to a feedstock in
excess of the amount allowed under T.D. 66-16, when authorized by
Customs, without losing the ability to attribute under T.D. 66-16 for
all other feedstock-final product combinations. The operator must use
its actual production records for the requested feedstock-final product
combination. The operator must agree in writing that it will not, and
it will not enable any other person, to file a drawback claim under 19
U.S.C. 1313 inconsistent with those actual production records for that
feedstock-final product combination. The operator shall file its
request in accordance with paragraph (a)(3) of this section. The
Director, ORA, and the Director, OLSS, must determine whether T.D. 66-
16 needs to be modified and shall publish in the Customs Bulletin each
approval granted under this paragraph and request public comments with
each such approval.
(4) Attribution to privileged foreign feedstock; relative value. If
a final product is attributed to the separation of a privileged foreign
feedstock a relative value must be assigned (see section IV of the
appendix to this part).
(b) Refinery operating records. An operator may use the actual
refinery operating records to attribute the feedstocks used to the
removed or consumed products. Customs shall accept the operator's
operating conventions to the extent that the operator demonstrates that
it actually uses these conventions in its refinery operations. Whatever
conventions are elected by the operator, they must be used consistently
in order to be acceptable to Customs. Additionally, Customs may use
these records to test the validity of admissions into the subzone,
consumption within and removals from the subzone.
Example. If the operator mixes three equal quantities of
material in a day tank and treats that product as a three-part
mixture in its production unit, Customs will accept the resulting
product as composed of the three materials. If, in the alternative,
the operator assumes that the three products do not mix and treats
the first product as being composed of the first material put into
the day tank, the second product as composed of the second material
put into the day tank, and the third product as being composed of
the third material put into the day tank, Customs will accept that
convention also.
Sec. 146.96 Approval of other recordkeeping systems.
(a) Approval procedure. An operator must seek prior approval of
another recordkeeping procedure by submitting the following to the
Director, Office of Regulatory Audit:
(1) An explanation of the method describing how attribution will be
made when a finished product is removed from or consumed in the
subzone, and how and when the feedstocks will be decremented;
(2) A mathematical example covering at least two months which shows
the amounts attributed, all necessary relative value calculations, the
dates of consumption and removal, and the amounts and dates that the
transactions are reported to Customs.
(b) Failure to comply. Requests received that fail to comply with
paragraph (a) of this section will be returned to the requester with
the defects noted by the Director, Office of Regulatory Audit.
(c) Determination by Director. When the Director, Office of
Regulatory Audit, determines that the recordkeeping procedures provide
an acceptable basis for verifying the admissions and removals from or
consumption in a refinery subzone, the Director will issue a written
approval to the applicant.
Appendix to Part 146--Guidelines for Determining Producibility and
Relative Values for Oil Refinery Zones
Where an example is set out in this appendix, the example is for
purposes of illustrating the application of a provision, and where
there is any inconsistency between the example and the provision,
the provision prevails to the extent of the inconsistency.
Alternative formats are also acceptable so long as they are
consistent with the provisions of this part.
I. Attribution Using Producibility Showing Manufacturing Periods From
Admission to Removal Within a Calender Month.
Volume losses and gains accounted for by weight.
Day 1
Receipt into the refinery subzone during a 30-day month:
50,000 pounds privileged foreign (PF) class II crude oil.
50,000 pounds PF class III crude oil.
50,000 pounds domestic status class III crude oil.
Day 10
Removal from the refinery subzone for exportation of 50,000
pounds of aviation gasoline.
The period of manufacture for the aviation gasoline is Day 1 to
Day 10. The refiner must first attribute the designated source of
the aviation gasoline.
In order to maximize the duty benefit conferred by the zone
operation, the refiner chooses to attribute the exported aviation
gasoline to the privileged foreign status crude oil. Under the
tables for potential production (T.V. 66-16), class II crude has a
30% potential, and class III has a 40% potential. The maximum
aviation gasoline producible from the class II crude oil is 15,000
pounds (50,000 x .30). The maximum aviation gasoline producible
from the privileged foreign status class III crude oil is 20,000
pounds (50,000 x .40). The domestic class III crude would also
make 20,000 pounds of aviation gasoline.
The refiner could attribute 15,000 pounds of the privileged
foreign class II crude oil, 20,000 pounds of the privileged foreign
class III crude oil, and 15,000 pounds of the domestic class III
crude oil as the source of the 50,000 pounds of the aviation
gasoline that was exported; 35,000 pounds of class II crude oil
would be available for further production for other than aviation
gasoline, 30,000 pounds of privileged foreign class III crude oil
would be available for further production for other than aviation
gasoline, and 35,000 pounds of domestic status class III crude oil
would be available for further production, of which up to 5,000
pounds could be attributed to aviation gasoline.
Day 21
Receipt in the refinery subzone:
50,000 pounds PF status class I crude oil.
50,000 pounds PF status class IV crude oil.
Day 30
Removal from the refinery subzone:
30,000 pounds of motor gasoline for consumption.
10,000 pounds of jet fuel sold to the US Air Force for use in
military aircraft.
10,000 pounds of aviation gasoline sold to a U.S. commuter airline
for domestic flights.
10,000 pounds of kerosene for exportation.
To the extent that the crude oils that entered production on Day
1 are attributed as the designated sources for the products removed
on Day 30, the period of manufacture is Day 1 to Day 30. If the
refiner chooses to attribute the crude oils that were admitted on
Day 21 as the designated sources of the products removed on Day 30
using the production standards published in T.D. 66-16, the
manufacturing period is Day 21 to Day 30. This choice will be
important if a relative value calculation on the privileged foreign
status crude oil is required, because [[Page 20635]] the law
requires the value used for computing the relative value to be the
average per unit value of each product for the manufacturing period.
Relative value must be calculated if a source feedstock is separated
into two or more products that are removed from the subzone
refinery. If the average per unit value for each product differs
between the manufacturing period from Day 1 to Day 30 and the
manufacturing period from Day 21 to Day 30, the correct period must
be used in the calculation.
In order to minimize duty liability, the refiner would try to
attribute the production of the exported kerosene and the sale of
the jet fuel to the US Air Force to the privileged foreign crude
oils. For the same reason, the refiner would try to attribute the
removed motor gasoline and the aviation gasoline for the commuter
airline to the domestic crude oil.
Accordingly, the refiner chooses to attribute up to 5,000 pounds
of the domestic status class III crude as the source of the 10,000
pounds of aviation gasoline removed from the subzone refinery for
the commuter airline. Since no other aviation gasoline could have
been produced from the crude oils that were admitted into the
refinery subzone Day 1, the refiner must attribute the remainder to
the crude oils that entered production on Day 21. Again, using the
production standards from T.D. 66-16, the class I crude could
produce aviation gasoline in an amount up to 10,000 pounds (50,000
x .20). Likewise, the class IV crude oil could produce aviation
gasoline in an amount up to 8,500 pounds (50,000 x .17).
The refiner selects use of the class I crude as the source of
the aviation gasoline. The refiner could attribute up to 27,300
pounds (35,000-5,000 x .91) of the domestic class III crude oil as
the source of the motor gasoline. This would leave 2,700 pounds of
domestic class III crude available for further production for other
than aviation gasoline or motor gasoline. The remaining motor
gasoline removed (also 2,700 pounds) must be attributed to a
privileged foreign crude oil. The refiner selects the privileged
foreign class II crude oil that entered production on Day 1 as the
source for the remaining 2,700 pounds of motor gasoline.
This would leave 32,300 pounds of privileged foreign class II
crude oil available for further production, of which no more than
27,400 pounds could be designated as the source of motor gasoline.
The refiner attributes the jet fuel that is removed from the
refinery subzone for the US Air Force for use in military aircraft
to the privileged foreign class II crude oil. The refiner could
attribute up to 20,995 pounds of jet fuel from that class II crude
oil (32,300 x .65). Designating that class II crude oil as the
source of the 10,000 pounds of jet fuel leaves 22,300 pounds of
privileged foreign class II crude oil available for further
production, of which up to 10,995 pounds could be attributed as the
source of the jet fuel. Because the motor gasoline and the jet fuel,
under the foregoing attribution, would be considered to have been
separated from the privileged foreign class II crude oil, a relative
value calculation would be required.
The jet fuel is eligible for removal from the subzone free of
duty by virtue of 19 U.S.C. 1309(a)(1)(A). The refiner could
attribute the privileged foreign class II crude oil as being the
source of the 10,000 pounds of jet fuel (22,300 x .65). The
refiner chooses to attribute the privileged foreign class III crude
oil as the source of the jet fuel. The refiner could attribute to
that class III crude oil up to 15,000 pounds of kerosene (30,000 x
.50).
II. Attribution on a FIFO Basis
(Accounting for volume losses or gains by the weight method)
Day 1-5
Transfer, into the Refinery Subzone, from one or more storage
tanks into process 150 barrels of Privileged Foreign (PF) Class II
crude oil, equivalent to 50,000 pounds.
Day 6
Removal from the refinery subzone 119 barrels of residual oils
to customs territory, equivalent to 40,000 pounds.
Since the operator uses the FIFO method of attribution, as the
product is removed from the subzone, or consumed or lost within the
subzone, attribution must be to the oldest feedstock available for
attribution. Accordingly, the 40,000 pounds of residual oils will be
attributed to 40,000 pounds of the PF Class II crude oil from Day 1-
5.
Day 10
Transfer, into the refinery subzone, from one or more storage
tanks 4 barrels of domestic motor gasoline blend stock, equivalent
to 1,000 pounds to motor gasoline blending tank.
Day 6-15
Transfer, into the refinery subzone, from one or more storage
tanks into process 320 barrels of Domestic Class III crude oil,
equivalent to 100,000 pounds.
Day 16
Removal from the refinery subzone 14 barrels of asphalt to
customs territory, equivalent to 5,000 pounds.
The 5,000 pounds of asphalt will be attributed to 5,000 pounds
of PF Class II crude oil from Day 1-5.
Day 17
Removal from the refinery subzone, 324 barrels of motor gasoline
to customs territory, equivalent to 81,000 pounds.
The 81,000 pounds of motor gasoline will be attributed to 1,000
pounds of domestic motor gasoline blend stock from Day 10, to the
remaining 5,000 pounds of PF Class II crude oil from Day 1-5 and
75,000 pounds of domestic Class III crude oil from Day 6-15.
Day 16-20
Transfer, into the refinery subzone, from one or more storage
tanks into process 169 barrels of Privileged Foreign (PF) Class III
crude oil, equivalent to 50,000 pounds.
Day 22
Removal from the refinery subzone, 214 barrels of jet fuel for
exportation, equivalent to 60,000 pounds.
The 60,000 pounds of jet fuel will be attributed to the
remaining 25,000 pounds of domestic Class III crude oil from Day 6-
15 and 35,000 pounds of PF Class III crude oil from Day 16-20.
Day 21-25
Transfer, into the refinery subzone from one or more storage
tanks into process, 143 barrels of domestic Class I crude oil,
equivalent to 50,000 pounds.
Day 30 (End of the Manufacturing Period)
It is determined that during the manufacturing period just
ended, that 34 barrels of fuel, equivalent to 10,000 pounds was
consumed, and 5 barrels of oil, equivalent to 1,500 pounds was lost
in the refining production process within the refinery subzone.
The 10,000 pounds of fuel consumed will be attributed 10,000
pounds of PF Class III crude oil from Day 16-20. The 1,500 pounds of
oil lost in the refining production process will be attributed to
1,500 pounds of PF Class III crude oil from Day 16-20. The remaining
3,500 pounds of PF Class III crude oil from Day 16-20 will be the
first to be attributed during the next manufacturing period.
III. Relative Value Calculation
Because privileged foreign feedstocks transferred into process
during Day 1-5 and Day 16-20 have two or more products attributed to
them, each feedstock will require a relative value calculation.
Relative value calculation for UIN Day 1-5, 50,000 pounds,
equivalent to 150 barrels.
----------------------------------------------------------------------------------------------------------------
DProduct
ALbs B BBLS C$/BBL value ER.V.Factor FR.V.BBL GDutiableBBL
----------------------------------------------------------------------------------------------------------------
Residual oil........ 40,000 119 15.00 1,785 .9047 108 108
Asphalt............. 5,000 14 13.00 182 .7840 11 11
Motor gasoline...... 5,000 20 26.00 520 1.5682 31 31
-------------------------------------------------------------------------------------------
Totals........ 50,000 153 ........... 2,487 ........... 150 150
----------------------------------------------------------------------------------------------------------------
A=Pounds Attributed.
B=Equivalent Barrels.
[[Page 20636]]
C=Price of Product.
D=B x C.
E=C/(Total of Column D/Attributed Crude BBLS).
Residual Oil RV Factor=15.00/(2,487/150)=.9047.
F=B x E.
G=Dutiable Barrels.
Since all products attributed to the 50,000 pounds (150 BBLS) of
PF Class II crude entered customs territory duty equals $7.88
(150 x .0525).
Feedstock factor calculation for UIN Day 16-20, 46,500 pounds
equivalent to 157 barrels.
----------------------------------------------------------------------------------------------------------------
Product Feedstock Dutiable
Lbs BBLS $/BBL value factor R.V. BBL BBL
----------------------------------------------------------------------------------------------------------------
Jet Fuel............. 35,000 125 27.00 3,375 1.1030 138 0
Fuel................. 10,000 34 12.00 408 0.4902 17 0
Consumed Process Loss 1,500 5 12.00 60 0.4902 2 0
------------------------------------------------------------------------------------------
Totals......... 46,500 164 ........... 3,843 ........... 157 0
----------------------------------------------------------------------------------------------------------------
Since jet fuel was exported, no duty is applicable. Fuel
consumed for refinery process was consumed within the subzone
premises and did not enter customs territory, thus no duty is
applicable (assume refinery not barred by duty-free consumption
restriction). Likewise, the process loss occurred entirely within
the subzone. Therefore, no duty is applicable.
IV. Attribution to Privileged Foreign Feedstock; Relative Value;
Monthly Manufacturing Period, Weekly Entries, Attribution to a Prior
Period; Volume Loss or Gain Shown by Volume Differences.
An operator who elects to attribute on a monthly basis files the
following estimated removal of final products for the first week in
September:
Jet Fuel (deemed exported on international flights)........... 20,000
Gasoline--Domestic Consumption................................ 15,000
Duty-free certified as emergency war material................. 10,000
Petroleum coke exportations................................... 10,000
Distillate for consumption.................................... 5,000
Petrochemicals exported....................................... 10,000
---------
Total removals.......................................... 70,000
Because it does not elect to make attributions for feedstocks
that were charged to operating units during the same week, the
operator attributes the estimated removals to final products made
during August from the following feedstocks:
Class II PF (privileged foreign) crude........................ 20,000
Class III PF crude............................................ 35,000
Class III D (domestic) crude.................................. 20,000
Class III NPF (nonprivileged foreign crude.................... 20,000
---------
95,000
During August the operator produced from those feedstocks:
Jet.......................................................... 35,000
Gasoline..................................................... 40,000
Petroleum Coke............................................... 10,000
Distillate................................................... 5,000
Petrochemicals............................................... 15,000
----------
105,000
There is a gain of 105,000-95,000=10,000
Using the tables in T.D. 66-16, the following choices are
available for attribution:
----------------------------------------------------------------------------------------------------------------
Petrolum Petro-
Charged Jet Gasoline coke Distillate chemical
----------------------------------------------------------------------------------------------------------------
Class II PF Crude................. 20,000 13,000 17,200 4,400 17,200 5,000
Class III PF Crude................ 35,000 24,500 31,850 14,000 31,150 10,150
Class III D Crude................. 20,000 14,000 18,200 8,000 17,800 5,800
Class III NPF Crude............... 20,000 14,000 18,200 8,000 17,800 5,800
----------------------------------------------------------------------------------------------------------------
Feedstock factors are calculated:
----------------------------------------------------------------------------------------------------------------
Feedstock
Barrels Valuebarrels Value factors
----------------------------------------------------------------------------------------------------------------
Gasoline................................................... 40,000 $25 $1,000,000 .9117
Jet Fuel................................................... 35,000 23 805,000 .8388
Distillate................................................. 5,000 20 100,000 .7294
Petroleum Coke............................................. 10,000 10 100,000 .3647
Petrochemicals............................................. 15,000 40 600,000 1.4587
----------------------------------------------------
[[Page 20637]]
105,000 ............ 2,605,000
----------------------------
Gain....................................................... -10,000 $2,605,000 ........... ...........
----------------------------
Total................................................ \1\95,000
(2)=$27.42 average value p/bbl
----------------------------------------------------------------------------------------------------------------
Using the feedstock factor the refiner makes the following
attributions:
Jet Fuel.................. 24,192 (20,291 feedstock attributed to
Class III PF Crude).
10,808 Class III NPF Crude
(attribution of 9066 solely
for purpose of accounting for
the amount of NPF used).
-------------
35,000
Gasoline................ 5,000 (4,559 feedstock attributed to
Class III PF Crude).
5,000 Class III NPF Crude
(attribution of 4599 solely
for purpose of accounting for
the amount of NPF used).
15,000 (13,676 feedstock attributed to
Class III D Crude).
-------------
Petroleum Coke............ 8,418 (3,070 feedstock attributed to
Class II PF Crude).
1,582 Class III NPF Crude
(attribution of 577 solely for
purposes of accounting for the
amount of NPF used).
-------------
10,000
Distillate................ 5,000 (3,647 feedstock attributed to
Class III Domestic).
Petrochemicals............ 3,975 (5,800 feedstock attributed to
Class III NPF Crude).
6,025 (8,789 feedstock attributed to
Class III PF Crude).
-------------
10,000
V. Weekly Entry, Weekly Manufacturing Period, and Relative Values
Calculated on the Actual Weighted Average Values at the End of the
Week.
On the weekly estimated production CF 3461, the refiner is
required to provide a pro forma invoice or schedule showing the
number of units of each type of merchandise to be removed during the
week and their zone and dutiable values. For example, on CF 3461 the
refiner estimates the following shipments and relative values for
the next week and files this on the preceding Friday.
----------------------------------------------------------------------------------------------------------------
PF shipments Value/barrel
Product week 1 (MBBLS) (platts) Total value
----------------------------------------------------------------------------------------------------------------
Motor Gasoline.................................................. 20,000 $35 $700,000
Total Alkylate.................................................. 25,000 35 875,000
Heavy Reformate................................................. 60,000 35 2,100,000
Reformer Feed................................................... 110,000 35 3,850,000
Raffinates...................................................... 200,000 35 7,000,000
Jet Fuel........................................................ 200,000 35 7,000,000
---------------- ---------------
Total..................................................... 615,000 .............. $21,525,000
----------------------------------------------------------------------------------------------------------------
Attributed Feedstock--Class III Crude: 615,[email protected] $105=$64,575
(estimated duties)
During that week the refiner actually removes the following
products and reports those on the CF 7501 filed within 10 business
days after the CF 3461 is filed. Column 3 is the actual ``weighted
average'' value for the manufacturing period, therefore, no
reconciliation is necessary.
--------------------------------------------------------------------------------------------------------------------------------------------------------
3 Value/ 5
1 Product 2 barrel(wt. 4 Totalvalue(2) x Relativevaluefactor(3)/ 6 Feedstockdistribu.(5) x 7 Liq.duties(6) x
PFShipments(mbbls) avg.) (3) (8) (2) (10)(9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 1:
Motor
Gasoline... 19,977 $35.70 $713,179 1.104545 22,065 $2,317
Total
Alkylate... 22,907 42.50 973,548 1.314935 30,121 3,163
Heavy
Reformate.. 58,164 31.42 1,827,513 .972123 56,542 5,937
Reformer
Feed....... 100,279 31.42 3,150,766 .972123 97,484 10,235
Raffinates.. 170,293 29.55 5,032,158 .914266 155,693 16,348
Jet Fuel.... 168,433 30.04 5,059,727 .929426 156,546 16,437
---------------------------------------------------------------------------------------------------------------------------------------
Total..... 540,053 .............. 16,756,891 ....................... 518,451 54,437
(9) (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 518,451 x $.105 = $54,437
Volumetric Gain 21,602
Avg. Value/Barrel Crude Consumed=$16,756,891518,451=$32.321
(8)
This example shows volumetric gain of 21,602 mbbls. However, in
that PF was requested, liquidated duties are only on actual
feedstock (class III crude) used in the refining process. (518,451 @
$.105=$54,437). [[Page 20638]]
VI. Weekly Entry, Monthly Manufacturing Period, and Relative Values
Calculated on the Actual Weighted Average Values at the End of the
Month.
For example, on the CF 3461 the refiner estimates the following
shipments and relative values for the next week and files this on
the preceding Friday.
----------------------------------------------------------------------------------------------------------------
3Value/
1Product 2PFshipments(mbbls) barrel(platts) 4Totalvalue
----------------------------------------------------------------------------------------------------------------
Week 1:
Motor Gasoline......................................... 20,000 $35 $700,000
Total Alkylate......................................... 25,000 35 875,000
Heavy Reformate........................................ 60,000 35 2,100,000
Reformer Feed.......................................... 110,000 35 3,850,000
Raffinates............................................. 200,000 35 7,000,000
Jet Fuel............................................... 200,000 35 7,000,000
--------------------- ---------------
Total................................................ 615,000 .............. 21,525,000
----------------------------------------------------------------------------------------------------------------
Attributed Feedstock--Class III Crude: 615,000 @ $.105=$64,575
(estimated duties)
During the week the refiner actually removes the following
products and reports those on the CF 7501 filed within 10 business
days after the CF 3461 is filed. The reported relative values may be
an estimate based on Platts, prior period actual prices, or the
refiner's transfer prices. For this example, the estimates are based
on the refiner's actual transfer prices. Listed below are the data
to be shown on the weekly CF 7501s with actual quantities shipped
and estimated values for weeks 1-5.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3Value/ 5Relativevaluefactor(3)/
1Product 2PFshipments(mbbls) barrel(estimates) 4Totalvalue(2) x (3) (8) 6Feedstockdistrib.(5) x (2) 7Liq.duties(6) x (10)(9)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Week 1:
Motor Gasoline............................... 19,977 $35.70 $713,179 1.104545 22,065 $2,317
Total Alkylate............................... 22,907 42.50 973,548 1.314935 30,121 3,163
Heavy Reformate.............................. 58,164 31.42 1,827,513 .972123 56,542 5,937
Reformer Feed................................ 100,279 31.42 3,150,766 .972123 97,484 10,235
Raffinates................................... 170,293 29.55 5,032,158 .914266 155,693 16,348
Jet Fuel..................................... 168,433 30.04 5,059,727 .929426 156,546 16,437
----------------------------------------------------------------------------------------------------------------------------------------------
Total...................................... 540,053 ................. 16,756,891 ........................ 518,451 $54,437
(9) (10)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 518,451 x $.105=$54,437
Volumetric Gain 21,602
Avg. Value/Barrel Crude Consumed=$16,756,891518,451=$32.321
(8)
----------------------------------------------------------------------------------------------------------------
2 PF shipments 3Value/ barrel 5Relative 6Feedstock
1Product (mbbls) (estimated) 4Total value value factor distrib. 7Liq. duties
----------------------------------------------------------------------------------------------------------------
Week 2:
Motor
Gasoline... 20,651 $36.90 $762,022 1.145429 23,654 $2,484
Total
Alkylate... 23,435 44.25 1,036,999 1.373584 32,190 3,380
Heavy
Reformate.. 59,819 30.35 1,815,507 .942108 56,358 5,918
Reformer
Feed....... 101,167 30.10 3,045,127 .934347 94,526 9,925
Raffinates.. 172,317 29.30 5,048,888 .909514 156,726 16,456
Jet fuel.... 165,291 30.70 5,074,434 .952972 157,519 16,539
-----------------------------------------------------------------------------------------------
Total..... 542,680 .............. $16,782,977 .............. 520,973 $54,702
----------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 520,973 x $.105 = $54,702
Volumetric Gain 21,707
Avg. Value/Barrel Crude Consumed = $32.215
----------------------------------------------------------------------------------------------------------------
2 PF shipments 3Value/ barrel 5Relative 6Feedstock
1Product (mbbls) (estimated) 4Total value value factor distrib. 7Liq. duties
----------------------------------------------------------------------------------------------------------------
Week 3:
Motor
Gasoline... 18,689 $34.90 $652,246 1.091819 20,405 $2,142
Total
Alkylate... 21,511 40.25 865,818 1.259190 27,087 2,844
Heavy
Reformate.. 57,371 30.90 1,772,764 .966682 55,460 5,823
Reformer
Feed....... 99,707 30.90 3,080,946 .966682 96,386 10,121
Raffinates.. 168,112 29.65 4,984,521 .927577 155,938 16,374
[[Page 20639]]
Jet Fuel.... 172,092 29.85 5,136,946 .933834 160,707 16,874
-----------------------------------------------------------------------------------------------
Total..... 537,482 .............. $16,493,241 .............. 515,983 $54,178
----------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 515,983 x $.105=$54,178
Volumetric Gain 21,499
Avg. Value/Barrel Crude Consumed=$31.965
----------------------------------------------------------------------------------------------------------------
2 PF shipments 3Value/ barrel 5Relative 6Feedstock
1Product (mbbls) (estimated) 4Total value value factor distrib. 7Liq. duties
----------------------------------------------------------------------------------------------------------------
Week 4:
Motor
Gasoline... 21,905 $32.85 $719,579 1.027237 22,502 $2,363
Total
Alkylate... 22,552 38.75 873,890 1.211733 27,327 2,869
Heavy
Reformate.. 58,116 29.60 1,720,234 0.925607 53,791 5,648
Reformer
Feed....... 101,058 29.40 2,971,105 0.919353 92,908 9,755
Raffinates.. 169,823 30.15 5,120,163 0.942806 160,110 16,812
Jet Fuel.... 171,493 31.05 5,324,858 0.970949 166,511 17,484
-----------------------------------------------------------------------------------------------
Total..... 544,947 .............. $16,729,829 .............. 523,149 $54,931
----------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 523,149 x $.105=$54,931
Gain 21,798
Avg. Value/Barrel Crude Consumed=$31.979
----------------------------------------------------------------------------------------------------------------
2 PF shipments 3Value/ barrel 5Relative 6Feedstock
1Product (mbbls) (estimated) 4Total value value factor distrib. 7Liq. duties
----------------------------------------------------------------------------------------------------------------
Week 5:
Motor
Gasoline... 8,990 $37.25 $334,878 1.136260 10,215 $1,073
Total
Alkylate... 9,984 45.10 450,278 1.375713 13,735 1,442
Heavy
Reformate.. 25,351 31.50 798,557 0.960864 24,360 2,558
Reformer
Feed....... 43,492 31.35 1,363,474 0.956288 41,592 4,367
Raffinates.. 75,172 29.95 2,251,401 0.913583 68,677 7,211
Jet fuel.... 75,795 30.56 2,316,295 0.932190 70,654 7,418
-----------------------------------------------------------------------------------------------
Total..... 238,784 .............. $7,514,883 .............. 229,233 $24,069
----------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 229,233 x $.105=$24,069
Gain 9,551
Avg. Value/Barrel Crude Consumed=$32.783
As provided in the regulations, the refiner files an amended CF
7501 for each week based on the refiner's actual weighted average
values for the month, as shown below.
------------------------------------------------------------------------
Value/
Product barrel
(MBBLS)
------------------------------------------------------------------------
Month End:
Motor Gasoline......................................... $35.27
Total Alkylate......................................... 41.84
Heavy Reformate........................................ 30.66
Reformer Feed.......................................... 30.54
Raffinates............................................. 29.69
Jet Fuel............................................... 30.42
------------------------------------------------------------------------
Reconciliation of Week 1 Using Month's End Actual Weighted Average Values
--------------------------------------------------------------------------------------------------------------------------------------------------------
3 Value/ 5 Relative 6 7 Amended wt.
1 Product 2 PF shipments barrel (wt. 4 Total value value factor Feedstockdistri. avg. duties
(mbbls) avg.) actual (2) x (3) (3)/(8) (5) x (2) (6) x (10) (9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Motor Gasoline........................................ 19,977 $35.27 $704,589 1.095716 21,889 $2,298
Total Alkylate........................................ 22,907 41.84 958,429 1.299823 29,775 3,126
Heavy Reformate....................................... 58,164 30.66 1,783,308 .952499 55,401 5,817
Reformer Feed......................................... 100,279 30.54 3,062,521 .948771 95,141 9,990
Raffinates............................................ 170,293 29.69 5,055,999 .922365 157,072 16,493
[[Page 20640]]
Jet Fuel.............................................. 168,433 30.42 5,123,732 .945043 159,176 16,713
-------------------------------------------------------------------------------------------------
Total............................................. 540,053 .............. $16,688,578 .............. 518,454 54,437
(9) (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed = 518,454 x $.105 = $54,437
Volumetric Gain 21,599
Avg.Value/Bbl Crude Consumed = $16,688,578 518,454 =
$32.189 (8)
Note: No change in amended total duties, because duty is
computed on total quantity of class III crude used. The difference
is amongst the various products, i.e., estimated weekly CF 7501
duties paid for Motor Gasoline was $2,317, while the reconciled
amount as shown above is $2,298. Additional duties owed or refunds
due would depend on the reconciliation of the weekly entry as an
entirety.
VII. Weekly entry, monthly manufacturing period, relative values
calculated on prior manufacturing period's actual weighted average
values. The prior period (PP) values are set forth below:
------------------------------------------------------------------------
Value/Barrel
Product (wt. avg.)
------------------------------------------------------------------------
Motor Gasoline.......................................... Sec. 35.28
Total Alkylate.......................................... 41.90
Heavy Reformate......................................... 31.78
Reformer Feed........................................... 30.02
Raffinates.............................................. 31.10
Jet Fuel................................................ 28.80
------------------------------------------------------------------------
Thereafter, the information provided or both the CF 3461 and CF
7501 filed for each weekly entry with respect to relative values
would remain the same. The only estimated amount would be the
quantity to be removed on the CF 3461 as shown below. On the CF 3461
the refiner estimates the following shipments and uses a prior
manufacturing period's actual weighted average values.
----------------------------------------------------------------------------------------------------------------
3 Value/
1 Product 2 PF shipments barrel (PP) 4 Total value
(mbbls) (wt. avg.)
----------------------------------------------------------------------------------------------------------------
Week 1
Motor Gasoline.............................................. 20,000 $35.28 $705,600
Total Alkylate.............................................. 25,000 41.90 1,047,500
Heavy Reformate............................................. 60,000 31.78 1,906,800
Reformer Feed............................................... 110,000 30.02 3,302,200
Raffinates.................................................. 200,000 31.10 6,220,000
Jet Fuel.................................................... 200,000 28.80 5,760,000
-----------------------------------------------
Total..................................................... 615,000 .............. 18,942,100
----------------------------------------------------------------------------------------------------------------
Attributed Feedstock--Class III Crude: 615,000 @ $.105 = $64,575
(estimated duties)
On the CF 7501, the refiner reports the following shipments and
uses a prior manufacturing period's actual average values.
----------------------------------------------------------------------------------------------------------------
3 Value/ 5 Relative 6 Feedstock
1 Product 2 PF shipments barrel (PP) 4 Total value value factor distri. (5) x 7 Liq. duties
(mbbls) (wt. avg.) (2) x (3) (3)/(8) (2) (6) x (10) (9)
----------------------------------------------------------------------------------------------------------------
Week 1:
Motor
Gasoline... 19,977 $35.28 $704,789 1.097219 21,919 $2,902
Total
Alkylate... 22,907 41.90 959,803 1.303104 29,850 3,134
Heavy
Reformate.. 58,164 31.78 1,848,452 .988368 57,486 6,036
Reformer
Feed....... 100,279 30.02 3,010,376 .933632 93,623 9,830
Raffinates.. 170,293 31.10 5,296,112 .967220 164,710 17,295
Jet Fuel.... 168,433 28.80 4,850,870 .895689 150,863 15,840
-----------------------------------------------------------------------------------------------
Total..... 540,053 .............. $16,670,402 .............. 518,451 $54,437
(9) (10)
----------------------------------------------------------------------------------------------------------------
Class III Crude Used 518,451 x $.105 = $54,437
Volumetric Gain 21,602
Avg. Value/Barrel Crude Used = $16,670,402 518,451 =
$32.154 (8)
[[Page 20641]]
----------------------------------------------------------------------------------------------------------------
3 Value/
1 Product 2 PF shipments barrel (PP) 4 Total value 5 Relative 6 Feedstock 7 Liq. duties
(mbbls) (wt. avg.) value factor distri.
----------------------------------------------------------------------------------------------------------------
Week 2:
Motor
Gasoline... 20,651 $35.28 $728,567 1.096128 22,636 $2,377
Total
Alkylate... 23,435 41.90 981,926 1.301808 30,508 3,203
Heavy
Reformate.. 59,819 31.78 1,901,048 .987386 59,064 6,202
Reformer
Feed....... 101,167 30.02 3,037,033 .932704 94,359 9,908
Raffinates.. 172,317 31.10 5,359,059 .966259 166,503 17,483
Jet Fuel.... 165,291 28.80 4,760,381 .894799 147,903 15,529
-----------------------------------------------------------------------------------------------
Total..... 542,680 .............. 16,768,014 .............. 520,973 54,702
----------------------------------------------------------------------------------------------------------------
Class III Crude Used 520,973 x $.105=$54,702
Volumetric Gain 21,707
Avg. Value/Barrel Crude Used=$32.186
----------------------------------------------------------------------------------------------------------------
3 Value/
1 Product 2 PF shipments barrel (PP) 4 Total value 5 Relative 6 Feedstock 7 Liq.duties
(mbbls) (wt. avg.) value factor distri.
----------------------------------------------------------------------------------------------------------------
Week 3:
Motor
Gasoline... 18,689 $35.28 $659,348 1.099168 20,542 $2,157
Total
Alkylate... 21,511 41.90 901,311 1.305418 28,081 2,948
Heavy
Reformate.. 57,371 31.78 1,823,250 .990124 56,803 5,964
Reformer
Feed....... 99,707 30.02 2,993,204 .935290 93,254 9,792
Raffinates.. 168,112 31.10 5,228,283 .968938 162,889 17,103
Jet Fuel.... 172,092 28.80 4,956,250 .897280 154,414 16,214
-----------------------------------------------------------------------------------------------
Total..... 537,482 .............. 16,561,646 .............. 515,983 54,178
----------------------------------------------------------------------------------------------------------------
Class III Crude Used 515,983 x $.105=$54,178
Volumetric Gain 21,499
Avg. Value/Barrel Crude Used=$32.097
--------------------------------------------------------------------------------------------------------------------------------------------------------
3 Value/
1 Product 2 PF shipments barrel (PP) 4 Total value 5 Relative 6 7 Liq. duties
(mbbls) (wt. avg.) value factor Feedstockdistri.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 4:
Motor Gasoline.................................... 21,905 $35.28 $772,808 1.097390 24,038 $2,524
Total Alkylate.................................... 22,552 41.90 944,929 1.303306 29,391 3,086
Heavy Reformate................................... 58,116 31.78 1,846,926 .988522 57,447 6,032
Reformer Feed..................................... 101,058 30.02 3,033,761 .933777 94,365 9,908
Raffinates........................................ 169,823 31.10 5,281,495 .967371 164,281 17,250
Jet Fuel.......................................... 171,493 28.80 4,938,998 .895829 153,627 16,131
-------------------------------------------------------------------------------------------------
Total........................................... 544,947 .............. 16,818,917 .............. 523,149 54,931
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 523,149 x $.105=$54,931
Volumetric Gain 21,798
Avg. Value/Barrel Crude Used=$32.149
----------------------------------------------------------------------------------------------------------------
3 Value/
1 Product 2 PF shipments barrel (PP) 4 Total value 5 Relative 6 Feedstock 7 Liq. duties
(mbbls) (wt. avg.) value factor distri.
----------------------------------------------------------------------------------------------------------------
Week 5:
Motor
Gasoline... 8,990 $35.28 $317,167 1.097698 9,868 $1,036
Total
Alkylate... 9,984 41.90 418,330 1.303671 13,016 1,367
Heavy
Reformate.. 25,351 31.78 805,655 .988799 25,067 2,632
Reformer
Feed....... 43,492 30.02 1,305,630 .934039 40,623 4,265
Raffinates.. 75,172 31.10 2,337,849 .967642 72,740 7,638
Jet Fuel.... 75,795 28.80 2,182,896 .896080 67,919 7,131
-----------------------------------------------------------------------------------------------
Total..... 238,784 .............. 7,367,527 .............. 229,233 24,069
----------------------------------------------------------------------------------------------------------------
Class III Crude Used 229,233 x $.105=$24,069
Volumetric Gain 9,551
Avg. Value/Barrel Crude Used=$32.14
At the end of the month, the refiner must calculate its actual
weighted average values for use in the subsequent period.
[[Page 20642]]
Reconciliation of Relative Value for the Subsequent Period
--------------------------------------------------------------------------------------------------------------------------------------------------------
3 Value/ 5 Relative 6
1 Product 2 PF shipments barrel (PP) 4 Total value value factor Feedstockdistri. 7 Liq. duties
(mbbls) (wt. avg.) (2 x 3) (3)/(8) (5 x 2) (6 x (10) (9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Month End:
Motor Gasoline.................................... 90,212 $35.27 $3,181,777 1.095682 98,844 $10,379
Total Alkylate.................................... 100,389 41.84 4,200,276 1.299783 130,484 13,701
Heavy Reformate................................... 258,821 30.66 7,935,452 .952470 246,519 25,885
Reformer Feed..................................... 445,703 30.54 13,611,770 .948742 422,857 44,400
Raffinates........................................ 755,717 29.69 22,437,238 .922336 697,025 73,188
Jet Fuel.......................................... 753,104 30.42 22,909,424 .945014 711,694 74,726
-------------------------------------------------------------------------------------------------
Total........................................... 2,403,946 .............. 74,275,937 .............. 2,307,423 242,279
(9) (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 2,307,423 x $.105=$242,279
Volumetric Gain 96,523
Avg. Value/Barrel Crude Used=$74,275,9372,307,423=$32.19 (8)
Note: Actual monthly reconciliation data could result in
attributions on a product basis that are less than or greater than
weekly distributions. This is due to the ``weighing'' of the data
i.e., motor gasoline on a weekly basis was $10,996 as compared to
$10,379 as above. No additional duties are due to the averaging.
Michael H. Lane,
Acting Commissioner of Customs.
Approved: April 5, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 95-10226 Filed 4-26-95; 8:45 am]
BILLING CODE 4820-02-P
