[Federal Register Volume 61, Number 109 (Wednesday, June 5, 1996)]
[Notices]
[Pages 28639-28640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14126]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Customs Service
[T.D. 96-47]
Petroleum Refineries in Foreign Trade Subzones
AGENCY: Customs Service, Department of the Treasury.
ACTION: General notice; modification of T.D. 66-16.
-----------------------------------------------------------------------
SUMMARY: This document publishes an attribution schedule approved in
accordance with the foreign trade zone regulations for use by the
Valero Refining Company, operating as Foreign Trade Subzone No. 122j,
in Corpus Christi, Texas, covering three feedstocks not otherwise
covered by a published schedule, for the purpose of calculating the
amount of selected feedstock which would be required to produce a given
category of product in the subzone, with inventory accounting for
feedstock and product, as well as duty assessment for any such product
removed from or consumed within the subzone, being determined
accordingly.
FOR FURTHER INFORMATION CONTACT: Louis Hryniw, Office of Regulatory
Audit, (202) 927-0677.
SUPPLEMENTARY INFORMATION:
Background
By a final rule document published in the Federal Register as T.D.
95-35 (60 FR 20628) on April 27, 1995, Customs amended its foreign
trade zone regulations (19 CFR part 146) to add special procedures and
requirements governing the operation of petroleum refineries approved
as foreign trade subzones, in implementation of Sec. 9002 of the
Technical and Miscellaneous Revenue Act of 1988, codified as 19 U.S.C.
81c(d). These regulations, issued as a new subpart H to part 146
(Secs. 146.91-146.96), essentially establish procedures to account for
the various products refined in a subzone as well as the feedstocks
that are used therein in such refining operations, with duty assessment
being determined accordingly.
Specifically in this connection, Sec. 146.93(a) requires that all
final product refined in, and either removed from or consumed within, a
petroleum refinery subzone, be attributed to feedstock admitted into
the subzone in the current or prior manufacturing period.
One method of attribution permits a quantity of product to be
attributed as having been refined from a given quantity of feedstock to
the extent that the quantity of such product was producible (could have
been produced) from the stated quantity of feedstock. 19 CFR 146.95(a)
(1) and (2). This method, known as producibility, calls for the
establishment of objective production standards to govern its
application. Such standards, called industry standards of potential
production on a practical operating basis, have already been
established, adopted and published in T.D. 66-16. 19 CFR 146.95(a)(2).
In this regard, T.D. 66-16 lists several categories of products as well
as a number of different feedstocks, together with the noted industry
standards expressed in percentages.
Section 146.95(a)(3)(i) deals with the attribution of product to
feedstock not listed in T.D. 66-16, and requires in this situation that
the operator submit a proposed attribution schedule, supported by a
technical memorandum, to the appropriate port director. The port
director must refer the request to the Director, Office of Regulatory
Audit, who is responsible for reviewing and verifying the refiner's
records and approving or denying the request, following due
coordination with the Director, Office of Laboratories and Scientific
Services.
In the present case, Valero Refining Company, operating as Foreign
Trade Subzone No. 122j, in Corpus Christi, Texas, has submitted such a
request, which has since been evaluated by Customs as described, and
approved, concerning the establishment of a verified attribution
schedule for heretofore unlisted residual cracking feedstocks of
classes I, II, and III, respectively. Section 146.95(a)(3)(i)
[[Page 28640]]
requires that such a modification of T.D. 66-16 be published.
Consequently, this document informs the public that, pursuant to
the approval granted to it under Sec. 146.95(a)(3)(i), the refinery
subzone in question may use the attribution schedule hereinafter
published in calculating the amount of selected feedstock which would
be required to produce a quantity of a given petroleum product, with
inventory recordkeeping and control for both feedstock and product in
the subzone, and duty assessment for any product removed from or
consumed within the subzone, being determined accordingly.
Industry Standards of Potential Production on a Practical Operating
Basis Approved for Valero Refining Company
------------------------------------------------------------------------
Residual Residual Residual
Cracking Cracking Cracking
Product Feedstock Feedstock Feedstock
Class I, Class II, Class III,
percent percent percent
------------------------------------------------------------------------
Motor gasoline................... 86 77 86
Aviation gasoline.
Special naphthas................. 11 16 9
Jet fuels.
Kerosene and range oil........... ........... 4 4
Distillate oils.................. 4 24 3
Residual oils.................... 100 100 100
Lubricating oils.
Paraffin wax.
Petroleum coke................... 8 6 7
Asphalt.
Road oil.
Still gas........................ 10 10 10
Liquified refinery gas........... 12 20 23
Petroleum synthetic rubbers.
Petrochemical plastics and
resins.
All other petrochemical products. 3 4 1
------------------------------------------------------------------------
George J. Weise,
Commissioner of Customs.
Approved: May 8, 1996.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc 96-14126 Filed 6-4-96; 8:45 am]
BILLING CODE 4820-02-P
