[Federal Register Volume 64, Number 122 (Friday, June 25, 1999)]
[Notices]
[Page 34189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16245]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 31-99]
Foreign-Trade Zone 149--Freeport, Texas; Application for Foreign-
Trade Subzone Status; Dow Chemical Company (Petrochemical Complex),
Brazoria County, Texas
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Brazos River Harbor Navigation District, grantee of
FTZ 149, requesting special-purpose subzone status for the
petrochemical complex of Dow Chemical Company (Dow), located in
Brazoria County, Texas. The application was submitted pursuant to the
provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-
81u), and the regulations of the Board (15 CFR part 400). It was
formally filed on June 15, 1999.
The Dow petrochemical complex (8,555 acres, 5,300 employees)
consists of five sites in Brazoria County, Texas: Site 1: Plant A
petrochemical manufacturing facility and marine terminal (1,571 acres)
located adjacent to Port Freeport at FM 1495; Site 2: Plant B
petrochemical manufacturing facility (3,077 acres) located at State
Hwy. 288-B and State Hwy. 332, north of the Brazos River; Site 3:
Oyster Creek petrochemical manufacturing facility (825 acres) located
at the intersection of State Hwy. 332 and Route FM 523; Site 4: Oyster
Creek expansion site (904 acres) located adjacent to Site 3 south of
the intersection of State Hwy. 332 and east of Route FM 523; and Site
5: Stratton Ridge storage facility (13 underground caverns with 15.3
billion-pound storage capacity on 2,178 acres) located south of Route
FM 523 and intersected by County Road 226. The olefins plants (5,300
employees) produce a variety of petrochemical feedstocks and fuel
products, including ethylene (3.3 billion-lb. capacity), propylene (865
million-lb. capacity), butadiene (425 million-lb. capacity) and
pyrolysis gasoline (875 million-lb. capacity), propane, benzene, and
naphtha. Some 37 percent of the inputs, including fuel oil, naphtha,
condensate, and natural gasoline, are sourced abroad.
Zone procedures would exempt the petrochemical complex from Customs
duty payments on the foreign products used in its exports. On domestic
sales, the company would be able to choose the Customs duty rates that
apply to certain petrochemical feedstocks (duty-free) by admitting
incoming foreign inputs (e.g. naphtha, fuel oil, and condensates) in
non-privileged foreign status. The duty rates on inputs range from
5.2 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
August 24, 1999. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period (to September 8, 1999).
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, 500 Dallas,
Suite 1160, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, Room
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW,
Washington, DC 20230
Dated: June 17, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-16245 Filed 6-24-99; 8:45 am]
BILLING CODE 3510-DS-P
