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)