FR Notice Details

Application Information
149
00A
02/18/1993
Brazoria County
TX
BASF Corporation
Completed
03-1993
Foreign-Trade Zone 149--Brazoria County, TX; Application for Subzone;BASF Corp., Chemical Manufacturing Facilities, Freeport, TX

NOTICES

                           DEPARTMENT OF COMMERCE

                               Foreign-Trade Zones Board

                               (Docket 3-93)

Foreign-Trade Zone 149--Brazoria County, TX; Application for Subzone;
BASF Corp., Chemical Manufacturing Facilities, Freeport, TX

                          Thursday, February 18, 1993


An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Port of Freeport (Texas), grantee of FTZ 149, requesting
special-purpose subzone status at the for the chemical manufacturing
facilities of BASF Corporation located in Freeport, 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 February 2, 1993.

The BASF facilities consist of two sites in Freeport (Brazoria County),
Texas, approximately 45 miles south of Houston, Texas: Site 1 (416 acres)--
chemical manufacturing facility, 602 Copper Road, Freeport, some 7
miles from the Port of Freeport; and, Site 2 (75 acres) -- ammonia
terminal, located adjacent to the Port on Route FM 1495, Freeport.  Also
included is a 10-mile long pipeline connecting the two sites.

The facilities are used to produce certain chemical and petrochemical
products, primarily acrylic acids, acrylates, caprolactams, acrylic alcohol
derivatives, butanol, diols, plastic materials, and polymins (duty rates--
free to 16.8% + 3.7 cents/kg).  Currently, some 10 percent of material
inputs are sourced from abroad, including caprolactam extract, glacial
acrylic acid, cyclohexane, anone (duty rates-- 4.2% to 12.5% +2.4
cents/kg).  Other material inputs that may be sourced abroad involve a
variety of inorganic and organic chemicals, such as chemical elements,
inorganic acids and oxygen compounds, sulphur and halogen compounds, salts
of acids and metals, alcohols, hydrocarbons, phenols, ethers, aldehydes,
ketones, carboxylic acid compounds, esters of inorganic acids, nitrogen
compounds, organo-inorganic compounds, glycosides, alkaloids, organic
surface-active agents, other organic compunds (HTS 2940.00-2942.00),
herbicides, catalysts, solvents, antifreeze, prepared binders, other
chemical preparations (HTS 3823.10-3823.90), polymers of ethylene, polymers
of propylene/olefin, and other plastic materials (HTS 3915.10-3923.90)(duty
rates-- free to 20%).

Zone procedures would exempt BASF from Customs duty payments on the foreign
items used in export production.  On domestic sales, the company would be
able to choose the duty rate that applies to the finished or intermediate
products made at the plant.

Foreign merchandise and finished products held for export would be eligible
for an exemption from certain state and local ad valorem taxes.  The
application indicates that the savings from zone procedures would help
improve the facilities' international competitiveness.

In accordance with the Board's regulations (as revised, 56 FR 50790-50808,
10-8-91), a member of the FTZ Staff has been apointed examiner to investigate
the application and report to the Board.

Public comment on the application is invited from interested parties.
Submissions (original and three copies) shall be addressed to the Board's
Executive Secretary at the address below. The closing period for their
receipt is April 19, 1993. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period (to May 4, 1993).

A copy of the application and the accompanying exhibits will be available
for public inspection at each of the following locations:

Office of the Port Director,
U.S. Customs Service,
1000 Pine Street, P.O. Box D,
Freeport, TX 77541.

Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 3716,
14th Street & Constitution Avenue, NW.,
Washington, DC 20230.

Dated: February 8, 1993.

John J. Da Ponte, Jr.,

Executive Secretary.

(FR Doc. 93-3700 Filed 2-17-93; 8:45 am)