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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 50-97]
Foreign-Trade Zone 84--Houston, Texas; Application for Foreign-
Trade Subzone Status: Lyondell Petrochemical Company (Petrochemical
Complex), Harris County, TX
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Port of Houston Authority, grantee of FTZ 84,
requesting special-purpose subzone status for the petrochemical complex
of Lyondell Petrochemical Company (Lyondell), (subsidiary of Atlantic
Richfield Company) located in Harris County, Texas. The application was
submitted pursuant to the provisions of the Foreign-Trade Zones Act, as
amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR
part 400). It was formally filed on June 16, 1997.
The Lyondell petrochemical complex (2,236 acres, 700 employees) is
located at 8280 Sheldon Road on the San Jacinto River (Harris County),
20 miles east of Houston. The complex consists of two olefins plants
and related processing units which produce a variety of petrochemical
feedstocks and motor fuel blendstocks. Petrochemical feedstocks include
ethylene (3.8 billion-lb. capacity), propylene (2.2 billion-lb.
capacity), butadiene (615 million-lb. capacity), benzene, toluene,
xylene, methanol, ethane, propane, butylene, raw pyrolysis gasoline and
natural gas. Motor fuel blendstocks include MTBE and alkylates. The
petrochemical complex is integrated with the Lyondell-Citgo Refining
Company, Ltd. (LCR), refinery in the Houston area, which has an
application for subzone status pending with the Board (FTZ Doc. 32-97,
62 FR 24080, 5/2/97). The refinery will supply the petrochemical
complex with up to 80 percent of its feedstock needs, including
foreign-status gas oils, naphtha, natural gas condensate, natural
gasoline and raw pyrolysis gasoline.
Zone procedures would exempt the petrochemical complex from Customs
duty payments on the foreign products used in its exports. On domestic
sales, the company would be able to choose the Customs duty rates that
apply to certain petrochemical feedstocks (duty-free) by admitting
incoming foreign inputs (e.g. gas oils, naphtha) in non-privileged
foreign status. The duty rates on inputs range from 5.25c/barrel to
10.5c/barrel. Under the FTZ Act, certain merchandise in FTZ status is
exempt from ad valorem inventory-type taxes. The application indicates
that the savings from zone procedures would help improve the refinery's
international competitiveness.
In accordance with the Board's regulations, a member of the FTZ
Staff has been designated examiner to investigate the application and
report to the Board.
Public comment is invited from interested parties. Submissions
(original and 3 copies) shall be addressed to the Board's Executive
Secretary at the address below. The closing period for their receipt is
August 29, 1997. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period (to September 15, 1997).
A copy of the application and accompanying exhibits will be
available for public inspection at each of the following locations:
U.S. Department of Commerce Export Assistance Center, Suite 1160, 500
Dallas, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, Room
3716, U.S. Department of Commerce, 14th and Pennsylvania Avenue, NW.,
Washington, DC 20230
Dated: June 18, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-17052 Filed 6-27-97; 8:45 am]
BILLING CODE 3510-DS-P