U.S. DEPARTMENT OF COMMERCE
FOREIGN-TRADE ZONES BOARD
ORDER NO. 863
GRANT OF AUTHORITY FOR SUBZONE STATUS
BASIS PETROLEUM, INC.
(Oil Refinery)
TEXAS CITY, TEXAS
Pursuant to its authority under the Foreign-Trade Zones Act of June 18,
1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones Board
(the Board) adopts the following Order:
WHEREAS, by an Act of Congress approved June 18, 1934, an Act "To
provide for the establishment . . . of foreign-trade zones in ports of
entry of the United States, to expedite and encourage foreign commerce,
and for other purposes," as amended (19 U.S.C. 81a-81u) (the Act), the
Foreign-Trade Zones Board (the Board) is authorized to grant to
qualified corporations the privilege of establishing foreign-trade
zones in or adjacent to U.S. Customs ports of entry;
WHEREAS, the Board's regulations (15 CFR Part 400) provide for the
establishment of special-purpose subzones when existing zone facilities
cannot serve the specific use involved;
WHEREAS, an application from the Texas City Foreign Trade Zone
Corporation, grantee of Foreign-Trade Zone 199, for authority to
establish special-purpose subzone status at the oil refinery complex
of Basis Petroleum, Inc., in Texas City, Texas, was filed by the Board
on April 11, 1996, and notice inviting public comment was given in
the Federal Register (FTZ Docket 29-96, 61 FR 17875, 4-23-96); and,
WHEREAS, the Board adopts the findings and recommendations of the
examiner's report, and finds that the requirements of the FTZ Act and
Board's regulations would be satisfied, and that approval of the
application would be in the public interest if approval is subject to
the conditions listed below;
NOW, THEREFORE, the Board hereby authorizes the establishment of a
subzone (Subzone 199C) at the oil refinery of Basis Petroleum, Inc., in
Texas City, Texas, at the location described in the application,
subject to the FTZ Act and the Board's regulations, including §400.28,
and subject to the following conditions:
1. Foreign status (19 CFR §§ 146.41, 146.42) products consumed as
fuel for the refinery shall be subject to the applicable duty rate.
2. Privileged foreign status (19 CFR § 146.41) shall be elected
on all foreign merchandise admitted to the subzone, except that
non-privileged foreign (NPF) status (19 CFR § 146.42) may be elected
on refinery inputs covered under HTSUS Subheadings # 2709.00.1000 -
# 2710.00.1050, # 2710.00.2500 and # 2710.00.4500 which are used in
the production of:
-petrochemical feedstocks and refinery by-products (examiners
report, Appendix C);
-products for export; and,
-products eligible for entry under HTSUS # 9808.00.30 and
9808.00.40 (U.S. Government purchases).
3. The authority with regard to the NPF option is initially
granted until September 30, 2000, subject to extension.
Signed at Washington, DC, this ______ day of ____________ 1996.
__________________________________
Robert S. LaRussa
Acting Assistant Secretary of Commerce
for Enforcement and Compliance
Alternate Chairman
Foreign-Trade Zones Board
ATTEST:_________________________
John J. Da Ponte, Jr.
Executive Secretary