Guidelines
FTZ Annual Report
Oil Refinery Subzones
PART V. SUBZONE ACTIVITY
This part of the annual report is required for each subzone that is active under zone procedures during the fiscal year. (Only status reports (in the form of a letter) are required for inactive subzones.)
A. Summary for Subzone No.
Provide a narrative summary of the activity conducted at the subzone site, including the following information. This information may be provided on a separate sheet in narrative form.1
1. Name of owner, operator, and corporate affiliation.
a. Subzone #
b. Activation date
2. Description of the subzone site and plant facilities.
List site(s)
a. # acres
b. # tanks/storage capacity in barrels
3. Description of activity, including materials and components received, sourcing patterns, manufacturing/processing activity, products forwarded, and distribution.
a. Inputs
1. List primary non-crude receipts on an average daily basis.
b. Production
1. List primary non -NPF attributed products (fuels, lubricants, etc.). These products account for ___% of total output.
2. Provide a description of types of customers2 for non-NPF products shipped from the refinery. Identify exports by product and volume.
3. List primary products produced from NPF attributed crude. These products account for ___% of total output.
4. Provide a description of types of customers2 for petrochemical products.
- indicate approximate percentage of shipments that are to affiliated plants.
| 1. Percent export (of total production) | % |
|---|
| Direct Export | % |
|---|
| Indirect Exports (if known) | % |
|---|
| 2. Current rated crude distillation capacity | BPD |
|---|
| 3. Employment | . |
|---|
| Direct | . |
|---|
| Indirect (e.g. contract employees) | . |
|---|
| 4. Volume of total crude oil receipts on an average daily basis | BPD |
|---|
| 5. Volume of foreign crude oil receipts on an average daily basis | BPD |
|---|
| Estimated percentage of foreign crude receipts under 25 degrees API | % |
|---|
4. Statement as to type and level of production and relate to the scope of activity approved by the Board. (Refineries/petrochemical plants should state capacity as crude distillation BPD and stand alone petchem plants should give capacity as crude equivalent distillation BPD.)3
a. The most recent Board action (cite Board Order No. of original approval/Board Order 1116-NPF extension/other) in (year), indicated ______ BPD crude distillation capacity. State whether production is within this range or to what extent it is above it. Note that the Board allows for standard or minor variances (e.g., 10%) above stated capacity.
b. State the reason for any increase in BPD if you have indicated a different capacity, e.g. debottlenecking action, additional unit(s)
c. Indicate any major FTZ expansions or modifications. Give the FTZ case number and the date approved.
5. Discuss the economic and business benefits to the subzone user, including statement as to types of savings and how they assist the subzone user in its international competitive efforts (e.g. import displacement of finished products; sales in overseas markets). Please give examples where appropriate.4
a. Current estimate of annual zone duty savings is approximately ________. (May be stated in rounded or ranged figures: e.g., $1.2 mil, or $0.6 to $0.8 mil.)
b. Indicate how savings assist the subzone user in its international competitive efforts (e.g. reduce operating costs, improve margins, help make exports more competitive, maintain or increase refinery capacity through processing unit upgrades or additions at U.S. refinery versus foreign refinery in a global industry).
6. Describe public-type benefits (both direct and indirect) to the local and national economy:Please give specific examples.5 As it applies to your plant, you may describe with any or all of the following:
a. affected domestic production and employment, domestic refining capacity and domestic employment
b. helped to offset environmental compliance costs.
c. helped to make exports (direct and downstream) more competitive
d. helped to preserve U.S. refining capacity
e. contributed to increased investment in U.S. refining.
7. If subzone activity is subject to restriction, please describe method of compliance.
B. MOVEMENT OF MERCHANDISE FOR SUBZONE NO.
1. Merchandise in Subzone at Beginning and End of Fiscal Year
Beginning Ending
Value Value
Domestic Status $ $
Foreign Status
Total: $ $
2. Movement of Merchandise
Received Value
Domestic Status $
Foreign Status
From Other U.S. FTZ's
Domestic status
Foreign status
Total: $
Forwarded Value
To The U.S. Market6 $
To Foreign Countries (Exports)
To Other U.S. FTZ's
Total : $
Explanation of Discrepancies:
1. Does Beginning Inventory + Total Merchandise Received – Total Merchandise Forwarded =
Ending Inventory? If not, explain.
2. Is the Ending Inventory from the previous year equal to the Beginning Inventory for
this year?
3. Is the level of Merchandise Received this year significantly different from the
previous year? If yes, explain.
4. Other.
3. Statement as to nature and estimated amount of value-added plant activity (labor,
profit, overhead, etc.). One way to estimate plant value-added is: Value of Sales from
Plant minus Value of Merchandise Received at Plant. Value added is not included in the
Movement of Merchandise figures above.
4. Main Categories of Foreign Status Merchandise Received
Category Value Main Countries of Origin
$ ____________________
____________________
____________________
____________________
Total: $
5. Foreign Status Merchandise Received:
Nonprivileged Foreign $
Privileged Foreign $
6. Customs duties collected on merchandise entered into U.S.
Customs territory from the subzone during the fiscal year
amounted to $ .
7. When applicable, indicate merchandise destroyed in the
subzone during the fiscal year valued at $ .
1. The figures for the Narrative Section described above can be derived from existing company data. Though the Movement of Merchandise figures that are provided for Section B must be based on the FTZ reporting year (Oct 1 to Sept 30), the figures for the Narrative Section (Section A) may be based on the company's fiscal year or calendar year. The figures for the Narrative Section may be estimated, approximated, rounded or ranged. (For example: savings are approximately $0.7 million per year; fuel output ranges between 65 and 70 percent of total output). We suggest that appropriate references be included.
2. In describing customers, do not provide customer names or specific customer information. We are seeking general information about general types or categories of customers by industry and/or by use.
3. Grantees and subzone operators are reminded that grants of authority are approved for a given level of activity. In the case of oil refinery subzones, the levels of activity are stated in terms of current rated crude distillation capacity. A plant may increase its capacity, but the level of approved zone activity for the plant remains at the level approved under the subzone's current board order. Significant increases in activity above board approved levels requires an expanded authorization.
4. In describing how FTZ status has affected the refinery, please give examples and anecdotal information that you feel relevant. We recognize that FTZ status may be only a contributing factor.
5. In describing industry impact, information may be presented to the FTZ Board on a company-wide or industry-wide basis (rather than from individual subzones). In this manner the accumulated impact of all of a company's subzones or all of the subzones in the industry may be discussed as a group rather than on an individual basis for this particular point. If this is the case the individual subzone report may just reference the other submission to answer question 7.
6.Products that end up being used as refinery fuel are considered domestic shipments because they are subject to Customs entry procedures. These products should be included in the shipments to the U.S. market.
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