Foreign-Trade Zone 84; Houston, TX; Application for Subzone Hydril Company Facilities (Oil Field Equipment)

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 12-94]

Foreign-Trade Zone 84; Houston, TX; Application for Subzone

Hydril Company Facilities (Oil Field Equipment)

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 export activity at the

oil well equipment manufacturing facilities of the Hydril Company

(Inc.), located in Houston, 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 March 24, 1994.

The Hydril facilities consist of two sites in Houston (Harris

County), Texas. Site 1: (96 acres)--administrative/manufacturing

buildings, 3300 North Sam Houston Parkway East, one mile south of

Houston Intercontinental Airport; and, Site 2: (10 acres)--

manufacturing buildings, 8641 Moers Road, about \1/2\ mile east of

Hobby Airport. The facilities (350 employees) produce offshore and

surface oil field drilling equipment, such as blowout preventers,

diverter systems, chokes, and drill stem valves, for export and the

domestic market. Foreign-origin materials used in the manufacturing

process (about 10% of total) include: plastic articles, iron, steel, or

non-alloy casings; drill pipe of iron, non-alloy, or alloy; tubes of

iron, non-alloy or alloy, alloy tube/pipe fittings, insulated wire, and

lighting fittings. The application requests subzone status for export

activity only (foreign materials would be admitted under privileged

foreign status (19 CFR 146.41)).

Zone procedures would exempt Hydril from Customs duty payments on

the foreign materials used in export production (60% of output).

Foreign materials 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 Hydril 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 appointed

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 May 31, 1994. Rebuttal comments in response

to material submitted during the foregoing period may be submitted

during the subsequent 15-day period (to June 15, 1994).

A copy of the application and the accompanying exhibits will be

available for public inspection at each of the following locations:

U.S. Department of Commerce District Office, #1 Allen Center, 500

Dallas, suite 1160, Houston, TX 77002.

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: March 25, 1994.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 94-7855 Filed 3-31-94; 8:45 am]

BILLING CODE 3510-DS-P