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FTZ Board Reviewing Activity at California Refinery, Proposal to Expand Arizona Zone

Tuesday, March 18, 2014
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has determined to further review part of a notification of proposed production activity at the Phillips 66 Company facility within subzone 3E in Rodeo, Calif. This facility is used for refining crude and intermediate oils into fuels, gases, petrochemicals and byproducts. Phillips 66 also blends purchased petroleum products, such as gasoline, alkylates, biodiesel, renewable diesel and additives, with products produced at the refinery.

In the meantime, the Board has authorized the production activity described in the notification on a limited basis, subject to, among other things, a restriction requiring that all biodiesel and renewable diesel products be admitted to the zone in domestic (duty-paid) status.

Separately, the FTZ Board has received from the Nogales-Santa Cruz Economic Development Foundation Inc., grantee of FTZ 60, a request for authority to reorganize and expand this zone under the alternative site framework. The grantee’s proposed service area under the ASF would be all of Santa Cruz County, Ariz., within and adjacent to the Nogales-Mariposa U.S. Customs and Border Protection port of entry. Comments on this request are due no later than May 19.

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