Title 19: Customs Duties
PART 146—FOREIGN TRADE ZONES
Subpart H—Petroleum Refineries in Foreign-Trade Subzones
Appendix to Part 146—Guidelines for Determining Producibility and Relative Values for Oil Refinery Zones
Where an example is set out in this appendix, the example is for purposes of illustrating the application of a provision, and where there is any inconsistency between the example and the provision, the provision prevails to the extent of the inconsistency. Alternative formats are also acceptable so long as they are consistent with the provisions of this part.
I. Attribution Using Producibility Showing Manufacturing Periods From Admission t o Removal Within a Calender Month.
Volume losses and gains accounted for by weight.
Day 1
Receipt into the refinery subzone during a 30-day month:
50,000 pounds privileged foreign (PF) class II crude oil.
50,000 pounds PF class III crude oil.
50,000 pounds domestic status class III crude oil.
Day 10
Removal from the refinery subzone for exportation of 50,000 pounds of aviation gasoline.
The period of manufacture for the aviation gasoline is Day 1 to Day 10. The refiner must first attribute the designated source of the aviation gasoline.
In order to maximize the duty benefit conferred by the zone operation, the refiner chooses to attribute the exported aviation gasoline to the privileged foreign status crude oil. Under the tables for potential production (T.V. 66–16), class II crude has a 30% potential, and class III has a 40% potential. The maximum aviation gasoline producible from the class II crude oil is 15,000 pounds (50,000 × .30). The maximum aviation gasoline producible from the privileged foreign status class III crude oil is 20,000 pounds (50,000 × .40). The domestic class III crude would also make 20,000 pounds of aviation gasoline.
The refiner could attribute 15,000 pounds of the privileged foreign class II crude oil, 20,000 pounds of the privileged foreign class III crude oil, and 15,000 pounds of the domestic class III crude oil as the source of the 50,000 pounds of the aviation gasoline that was exported; 35,000 pounds of class II crude oil would be available for further production for other than aviation gasoline, 30,000 pounds of privileged foreign class III crude oil would be available for further production for other than aviation gasoline, and 35,000 pounds of domestic status class III crude oil would be available for further production, of which up to 5,000 pounds could be attributed to aviation gasoline.
Day 21
Receipt in the refinery subzone:
50,000 pounds PF status class I crude oil.
50,000 pounds PF status class IV crude oil.
Day 30
Removal from the refinery subzone:
30,000 pounds of motor gasoline for consumption.
10,000 pounds of jet fuel sold to the US Air Force for use in military aircraft.
10,000 pounds of aviation gasoline sold to a U.S. commuter airline for domestic flights.
10,000 pounds of kerosene for exportation.
To the extent that the crude oils that entered production on Day 1 are attributed as the designated sources for the products removed on Day 30, the period of manufacture is Day 1 to Day 30. If the refiner chooses to attribute the crude oils that were admitted on Day 21 as the designated sources of the products removed on Day 30 using the production standards published in T.D. 66–16, the manufacturing period is Day 21 to Day 30. This choice will be important if a relative value calculation on the privileged foreign status crude oil is required, because the law requires the value used for computing the relative value to be the average per unit value of each product for the manufacturing period. Relative value must be calculated if a source feedstock is separated into two or more products that are removed from the subzone refinery. If the average per unit value for each product differs between the manufacturing period from Day 1 to Day 30 and the manufacturing period from Day 21 to Day 30, the correct period must be used in the calculation.
In order to minimize duty liability, the refiner would try to attribute the production of the exported kerosene and the sale of the jet fuel to the US Air Force to the privileged foreign crude oils. For the same reason, the refiner would try to attribute the removed motor gasoline and the aviation gasoline for the commuter airline to the domestic crude oil.
Accordingly, the refiner chooses to attribute up to 5,000 pounds of the domestic status class III crude as the source of the 10,000 pounds of aviation gasoline removed from the subzone refinery for the commuter airline. Since no other aviation gasoline could have been produced from the crude oils that were admitted into the refinery subzone Day 1, the refiner must attribute the remainder to the crude oils that entered production on Day 21. Again, using the production standards from T.D. 66–16, the class I crude could produce aviation gasoline in an amount up to 10,000 pounds (50,000 × .20). Likewise, the class IV crude oil could produce aviation gasoline in an amount up to 8,500 pounds (50,000 × .17).
The refiner selects use of the class I crude as the source of the aviation gasoline. The refiner could attribute up to 27,300 pounds (35,000−5,000 × .91) of the domestic class III crude oil as the source of the motor gasoline. This would leave 2,700 pounds of domestic class III crude available for further production for other than aviation gasoline or motor gasoline. The remaining motor gasoline removed (also 2,700 pounds) must be attributed to a privileged foreign crude oil. The refiner selects the privileged foreign class II crude oil that entered production on Day 1 as the source for the remaining 2,700 pounds of motor gasoline.
This would leave 32,300 pounds of privileged foreign class II crude oil available for further production, of which no more than 27,400 pounds could be designated as the source of motor gasoline. The refiner attributes the jet fuel that is removed from the refinery subzone for the US Air Force for use in military aircraft to the privileged foreign class II crude oil. The refiner could attribute up to 20,995 pounds of jet fuel from that class II crude oil (32,300 × .65). Designating that class II crude oil as the source of the 10,000 pounds of jet fuel leaves 22,300 pounds of privileged foreign class II crude oil available for further production, of which up to 10,995 pounds could be attributed as the source of the jet fuel. Because the motor gasoline and the jet fuel, under the foregoing attribution, would be considered to have been separated from the privileged foreign class II crude oil, a relative value calculation would be required.
The jet fuel is eligible for removal from the subzone free of duty by virtue of 19 U.S.C. 1309(a)(1)(A). The refiner could attribute the privileged foreign class II crude oil as being the source of the 10,000 pounds of jet fuel (22,300 × .65). The refiner chooses to attribute the privileged foreign class III crude oil as the source of the jet fuel. The refiner could attribute to that class III crude oil up to 15,000 pounds of kerosene (30,000 × .50).
II. Attribution on a FIFO Basis
(Accounting for volume losses or gains by the weight method)
Day 1–5
Transfer, into the Refinery Subzone, from one or more storage tanks into process 150 barrels of Privileged Foreign (PF) Class II crude oil, equivalent to 50,000 pounds.
Day 6
Removal from the refinery subzone 119 barrels of residual oils to customs territory, equivalent to 40,000 pounds.
Since the operator uses the FIFO method of attribution, as the product is removed from the subzone, or consumed or lost within the subzone, attribution must be to the oldest feedstock available for attribution. Accordingly, the 40,000 pounds of residual oils will be attributed to 40,000 pounds of the PF Class II crude oil from Day 1–5.
Day 10
Transfer, into the refinery subzone, from one or more storage tanks 4 barrels of domestic motor gasoline blend stock, equivalent to 1,000 pounds to motor gasoline blending tank.
Day 6–15
Transfer, into the refinery subzone, from one or more storage tanks into process 320 barrels of Domestic Class III crude oil, equivalent to 100,000 pounds.
Day 16
Removal from the refinery subzone 14 barrels of asphalt to customs territory, equivalent to 5,000 pounds.
The 5,000 pounds of asphalt will be attributed to 5,000 pounds of PF Class II crude oil from Day 1–5.
Day 17
Removal from the refinery subzone, 324 barrels of motor gasoline to customs territory, equivalent to 81,000 pounds.
The 81,000 pounds of motor gasoline will be attributed to 1,000 pounds of domestic motor gasoline blend stock from Day 10, to the remaining 5,000 pounds of PF Class II crude oil from Day 1–5 and 75,000 pounds of domestic Class III crude oil from Day 6–15.
Day 16–20
Transfer, into the refinery subzone, from one or more storage tanks into process 169 barrels of Privileged Foreign (PF) Class III crude oil, equivalent to 50,000 pounds.
Day 22
Removal from the refinery subzone, 214 barrels of jet fuel for exportation, equivalent to 60,000 pounds.
The 60,000 pounds of jet fuel will be attributed to the remaining 25,000 pounds of domestic Class III crude oil from Day 6–15 and 35,000 pounds of PF Class III crude oil from Day 16–20.
Day 21–25
Transfer, into the refinery subzone from one or more storage tanks into process, 143 barrels of domestic Class I crude oil, equivalent to 50,000 pounds.
Day 30 (End of the Manufacturing Period)
It is determined that during the manufacturing period just ended, that 34 barrels of fuel, equivalent to 10,000 pounds was consumed, and 5 barrels of oil, equivalent to 1,500 pounds was lost in the refining production process within the refinery subzone.
The 10,000 pounds of fuel consumed will be attributed 10,000 pounds of PF Class III crude oil from Day 16–20. The 1,500 pounds of oil lost in the refining production process will be attributed to 1,500 pounds of PF Class III crude oil from Day 16–20. The remaining 3,500 pounds of PF Class III crude oil from Day 16–20 will be the first to be attributed during the next manufacturing period.
III. Relative Value Calculation
Because privileged foreign feedstocks transferred into process during Day 1–5 and Day 16–20 have two or more products attributed to them, each feedstock will require a relative value calculation.
Relative value calculation for UIN Day 1–5, 50,000 pounds, equivalent to 150 barrels.
-------------------------------------------------------------------------------------------------------------------------------------------------------- D Product E R.V. G Dutiable A Lbs B BBLS C $/BBL value Factor F R.V. BBL BBL--------------------------------------------------------------------------------------------------------------------------------------------------------Residual oil................................................. 40,000 119 15.00 1,785 .9047 108 108Asphalt...................................................... 5,000 14 13.00 182 .7840 11 11Motor gasoline............................................... 5,000 20 26.00 520 1.5682 31 31 ------------------------------------------------------------------------------------------ Totals................................................. 50,000 153 ........... 2,487 ........... 150 150--------------------------------------------------------------------------------------------------------------------------------------------------------A=Pounds Attributed.B=Equivalent Barrels.C=Price of Product.D=BxC.E=C/(Total of Column D/Attributed Crude BBLS).Residual Oil RV Factor=15.00/(2,487/150)=.9047.F=BxE.G=Dutiable Barrels.Since all products attributed to the 50,000 pounds (150 BBLS) of PF Class II crude entered customs territory duty equals $7.88 (150x.0525).Feedstock factor calculation for UIN Day 16-20, 46,500 pounds equivalent to 157 barrels.
-------------------------------------------------------------------------------------------------------------------------------------------------------- Product Feedstock Dutiable Lbs BBLS $/BBL value factor R.V. BBL BBL--------------------------------------------------------------------------------------------------------------------------------------------------------Jet Fuel..................................................... 35,000 125 27.00 3,375 1.1030 138 0Fuel......................................................... 10,000 34 12.00 408 0.4902 17 0Consumed Process Loss........................................ 1,500 5 12.00 60 0.4902 2 0 ------------------------------------------------------------------------------------------ Totals................................................. 46,500 164 ........... 3,843 ........... 157 0--------------------------------------------------------------------------------------------------------------------------------------------------------Since jet fuel was exported, no duty is applicable. Fuel consumed for refinery process was consumed within the subzone premises and did not enter customs territory, thus no duty is applicable (assume refinery not barred by duty-free consumption restriction). Likewise, the process loss occurred entirely within the subzone. Therefore, no duty is applicable.
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IV. Attribution to Privileged Foreign Feedstock; Relative Value; Monthly Manufacturing Period, Weekly Entries, Attribution to a Prior Period; Volume Loss or Gain Shown by Volume Differences.
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An operator who elects to attribute on a monthly basis files the following estimated removal of final products for the first week in September: Jet Fuel (deemed exported on international flights)........... 20,000Gasoline_Domestic Consumption................................. 15,000Duty-free certified as emergency war material................. 10,000Petroleum coke exportations................................... 10,000Distillate for consumption.................................... 5,000Petrochemicals exported....................................... 10,000 --------- Total removals.......................................... 70,000 Because it does not elect to make attributions for feedstocks that were charged to operating units during the same week, the operator attributes the estimated removals to final products made during August from the following feedstocks:
Class II PF (privileged foreign) crude........................ 20,000Class III PF crude............................................ 35,000Class III D (domestic) crude.................................. 20,000Class III NPF (nonprivileged foreign crude.................... 20,000 --------- 95,000 During August the operator produced from those feedstocks:
Jet.......................................................... 35,000Gasoline..................................................... 40,000Petroleum Coke............................................... 10,000Distillate................................................... 5,000Petrochemicals............................................... 15,000 ---------- 105,000 There is a gain of 105,000-95,000=10,000Using the tables in T.D. 66-16, the following choices are available for attribution:
---------------------------------------------------------------------------------------------------------------- Petrolum Petro- Charged Jet Gasoline coke Distillate chemical----------------------------------------------------------------------------------------------------------------Class II PF Crude................. 20,000 13,000 17,200 4,400 17,200 5,000Class III PF Crude................ 35,000 24,500 31,850 14,000 31,150 10,150Class III D Crude................. 20,000 14,000 18,200 8,000 17,800 5,800Class III NPF Crude............... 20,000 14,000 18,200 8,000 17,800 5,800----------------------------------------------------------------------------------------------------------------Feedstock factors are calculated:
---------------------------------------------------------------------------------------------------------------- Value Feedstock Barrels barrels Value factors----------------------------------------------------------------------------------------------------------------Gasoline.................................................... 40,000 $25 $1,000,000 .9117Jet Fuel.................................................... 35,000 23 805,000 .8388Distillate.................................................. 5,000 20 100,000 .7294Petroleum Coke.............................................. 10,000 10 100,000 .3647Petrochemicals.............................................. 15,000 40 600,000 1.4587 --------------------------------------------------- 105,000 ........... 2,605,000 ---------------------------Gain........................................................ -10,000 $2,605,000 --------------------------- Total................................................. \1\ 95,000 =$27.42 average value p/bbl----------------------------------------------------------------------------------------------------------------Using the feedstock factor the refiner makes the following attributions:
Jet Fuel......................... 24,192 (20,291 feedstock attributed to Class III PF Crude). 10,808 Class III NPF Crude (attribution of 9066 solely for purpose of accounting for the amount of NPF used). ------------- 35,000 Gasoline....................... 5,000 (4,559 feedstock attributed to Class III PF Crude). 5,000 Class III NPF Crude (attribution of 4599 solely for purpose of accounting for the amount of NPF used). 15,000 (13,676 feedstock attributed to Class III D Crude). -------------Petroleum Coke................... 8,418 (3,070 feedstock attributed to Class II PF Crude). 1,582 Class III NPF Crude (attribution of 577 solely for purposes of accounting for the amount of NPF used). ------------- 10,000Distillate....................... 5,000 (3,647 feedstock attributed to Class III Domestic).Petrochemicals................... 3,975 (5,800 feedstock attributed to Class III NPF Crude). 6,025 (8,789 feedstock attributed to Class III PF Crude). ------------- 10,000
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V. Weekly Entry, Weekly Manufacturing Period, and Relative Values Calculated on the Actual Weighted Average Values at the End of the Week.
On the weekly estimated production CF 3461, the refiner is required to provide a pro forma invoice or schedule showing the number of units of each type of merchandise to be removed during the week and their zone and dutiable values. For example, on CF 3461 the refiner estimates the following shipments and relative values for the next week and files this on the preceding Friday.
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---------------------------------------------------------------------------------------------------------------- PF shipments Value/barrel Product week 1 (MBBLS) (platts) Total value----------------------------------------------------------------------------------------------------------------Motor Gasoline.................................................. 20,000 $35 $700,000Total Alkylate.................................................. 25,000 35 875,000Heavy Reformate................................................. 60,000 35 2,100,000Reformer Feed................................................... 110,000 35 3,850,000Raffinates...................................................... 200,000 35 7,000,000Jet Fuel........................................................ 200,000 35 7,000,000 ---------------- --------------- Total..................................................... 615,000 .............. $21,525,000----------------------------------------------------------------------------------------------------------------Attributed Feedstock_Class III Crude: 615,000@ $105=$64,575 (estimated duties)During that week the refiner actually removes the following products and reports those on the CF 7501 filed within 10 business days after the CF 3461 is filed. Column 3 is the actual ``weighted average'' value for the manufacturing period, therefore, no reconciliation is necessary.
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 5 Relative 6 Feedstock 1 Product Shipments barrel (wt. 4 Total value value factor distribu. 7 Liq. duties (mbbls) avg.) (2)x(3) (3)/(8) (5)x(2) (6)x(10) (9)--------------------------------------------------------------------------------------------------------------------------------------------------------Week 1: Motor Gasoline...................................... 19,977 $35.70 $713,179 1.104545 22,065 $2,317 Total Alkylate...................................... 22,907 42.50 973,548 1.314935 30,121 3,163 Heavy Reformate..................................... 58,164 31.42 1,827,513 .972123 56,542 5,937 Reformer Feed....................................... 100,279 31.42 3,150,766 .972123 97,484 10,235 Raffinates.......................................... 170,293 29.55 5,032,158 .914266 155,693 16,348 Jet Fuel............................................ 168,433 30.04 5,059,727 .929426 156,546 16,437 ----------------------------------------------------------------------------------------------- Total............................................. 540,053 .............. 16,756,891 .............. 518,451 54,437 .............. .............. .............. .............. (9) (10)--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Consumed 518,451x$.105 = $54,437Volumetric Gain 21,602Avg. Value/Barrel Crude Consumed=$16,756,891÷518,451=$32.321 (8)This example shows volumetric gain of 21,602 mbbls. However, in that PF was requested, liquidated duties are only on actual feedstock (class III crude) used in the refining process. (518,451 @ $.105=$54,437).
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VI. Weekly Entry, Monthly Manufacturing Period, and Relative Values Calculated on the Actual Weighted Average Values at the End of the Month.
For example, on the CF 3461 the refiner estimates the following shipments and relative values for the next week and files this on the preceding Friday.
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---------------------------------------------------------------------------------------------------------------- 3 Value/ 1 Product 2 PF shipments barrel 4 Total value (mbbls) (platts)----------------------------------------------------------------------------------------------------------------Week 1: Motor Gasoline.............................................. 20,000 $35 $700,000 Total Alkylate.............................................. 25,000 35 875,000 Heavy Reformate............................................. 60,000 35 2,100,000 Reformer Feed............................................... 110,000 35 3,850,000 Raffinates.................................................. 200,000 35 7,000,000 Jet Fuel.................................................... 200,000 35 7,000,000 ---------------- --------------- Total..................................................... 615,000 .............. 21,525,000----------------------------------------------------------------------------------------------------------------Attributed Feedstock_Class III Crude: 615,000 @ $.105=$64,575 (estimated duties)During the week the refiner actually removes the following products and reports those on the CF 7501 filed within 10 business days after the CF 3461 is filed. The reported relative values may be an estimate based on Platts, prior period actual prices, or the refiner's transfer prices. For this example, the estimates are based on the refiner's actual transfer prices. Listed below are the data to be shown on the weekly CF 7501s with actual quantities shipped and estimated values for weeks 1-5.
-------------------------------------------------------------------------------------------------------------------------------------------------------- 3 Value/ 5 Relative 6 Feedstock 1 Product 2 PF shipments barrel 4 Total value value factor distrib. 7 Liq. duties (mbbls) (estimates) (2)x(3) (3)/(8) (5)x(2) (6)x(10) (9)--------------------------------------------------------------------------------------------------------------------------------------------------------Week 1: Motor Gasoline...................................... 19,977 $35.70 $713,179 1.104545 22,065 $2,317 Total Alkylate...................................... 22,907 42.50 973,548 1.314935 30,121 3,163 Heavy Reformate..................................... 58,164 31.42 1,827,513 .972123 56,542 5,937 Reformer Feed....................................... 100,279 31.42 3,150,766 .972123 97,484 10,235 Raffinates.......................................... 170,293 29.55 5,032,158 .914266 155,693 16,348 Jet Fuel............................................ 168,433 30.04 5,059,727 .929426 156,546 16,437 ----------------------------------------------------------------------------------------------- Total............................................. 540,053 .............. 16,756,891 .............. 518,451 $54,437 .............. .............. .............. .............. (9) (10)--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Consumed 518,451x$.105=$54,437Volumetric Gain 21,602Avg. Value/Barrel Crude Consumed=$16,756,891÷518,451=$32.321 (8)
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel 4 Total value 5 Relative 6 Feedstock 7 Liq. duties (mbbls) (estimated) value factor distrib.--------------------------------------------------------------------------------------------------------------------------------------------------------Week 2: Motor Gasoline...................................... 20,651 $36.90 $762,022 1.145429 23,654 $2,484 Total Alkylate...................................... 23,435 44.25 1,036,999 1.373584 32,190 3,380 Heavy Reformate..................................... 59,819 30.35 1,815,507 .942108 56,358 5,918 Reformer Feed....................................... 101,167 30.10 3,045,127 .934347 94,526 9,925 Raffinates.......................................... 172,317 29.30 5,048,888 .909514 156,726 16,456 Jet fuel............................................ 165,291 30.70 5,074,434 .952972 157,519 16,539 ----------------------------------------------------------------------------------------------- Total............................................. 542,680 .............. $16,782,977 .............. 520,973 $54,702--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Consumed 520,973x$.105 = $54,702Volumetric Gain 21,707Avg. Value/Barrel Crude Consumed = $32.215
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel 4 Total value 5 Relative 6 Feedstock 7 Liq. duties (mbbls) (estimated) value factor distrib.--------------------------------------------------------------------------------------------------------------------------------------------------------Week 3: Motor Gasoline...................................... 18,689 $34.90 $652,246 1.091819 20,405 $2,142 Total Alkylate...................................... 21,511 40.25 865,818 1.259190 27,087 2,844 Heavy Reformate..................................... 57,371 30.90 1,772,764 .966682 55,460 5,823 Reformer Feed....................................... 99,707 30.90 3,080,946 .966682 96,386 10,121 Raffinates.......................................... 168,112 29.65 4,984,521 .927577 155,938 16,374 Jet Fuel............................................ 172,092 29.85 5,136,946 .933834 160,707 16,874 ----------------------------------------------------------------------------------------------- Total............................................. 537,482 .............. $16,493,241 .............. 515,983 $54,178--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Consumed 515,983 x $.105 = $54,178Volumetric Gain 21,499Avg. Value/Barrel Crude Consumed = $31.965
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel 4 Total value 5 Relative 6 Feedstock 7 Liq. duties (mbbls) (estimated) value factor distrib.--------------------------------------------------------------------------------------------------------------------------------------------------------Week 4: Motor Gasoline...................................... 21,905 $32.85 $719,579 1.027237 22,502 $2,363 Total Alkylate...................................... 22,552 38.75 873,890 1.211733 27,327 2,869 Heavy Reformate..................................... 58,116 29.60 1,720,234 0.925607 53,791 5,648 Reformer Feed....................................... 101,058 29.40 2,971,105 0.919353 92,908 9,755 Raffinates.......................................... 169,823 30.15 5,120,163 0.942806 160,110 16,812 Jet Fuel............................................ 171,493 31.05 5,324,858 0.970949 166,511 17,484 ----------------------------------------------------------------------------------------------- Total............................................. 544,947 .............. $16,729,829 .............. 523,149 $54,931--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Consumed 523,149 x $.105 = $54,931Gain 21,798Avg. Value/Barrel Crude Consumed = $31.979
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel 4 Total value 5 Relative 6 Feedstock 7 Liq. duties (mbbls) (estimated) value factor distrib.--------------------------------------------------------------------------------------------------------------------------------------------------------Week 5: Motor Gasoline...................................... 8,990 $37.25 $334,878 1.136260 10,215 $1,073 Total Alkylate...................................... 9,984 45.10 450,278 1.375713 13,735 1,442 Heavy Reformate..................................... 25,351 31.50 798,557 0.960864 24,360 2,558 Reformer Feed....................................... 43,492 31.35 1,363,474 0.956288 41,592 4,367 Raffinates.......................................... 75,172 29.95 2,251,401 0.913583 68,677 7,211 Jet fuel............................................ 75,795 30.56 2,316,295 0.932190 70,654 7,418 ----------------------------------------------------------------------------------------------- Total............................................. 238,784 .............. $7,514,883 .............. 229,233 $24,069--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Consumed 229,233 x $.105 = $24,069Gain 9,551Avg. Value/Barrel Crude Consumed = $32.783As provided in the regulations, the refiner files an amended CF 7501 for each week based on the refiner's actual weighted average values for the month, as shown below.
------------------------------------------------------------------------ Value/ Product barrel (MBBLS)------------------------------------------------------------------------Month End: Motor Gasoline......................................... $35.27 Total Alkylate......................................... 41.84 Heavy Reformate........................................ 30.66 Reformer Feed.......................................... 30.54 Raffinates............................................. 29.69 Jet Fuel............................................... 30.42------------------------------------------------------------------------
Reconciliation of Week 1 Using Month's End Actual Weighted Average Values-------------------------------------------------------------------------------------------------------------------------------------------------------- 7 Amended 2 PF 3 Value/ 4 Total 5 Relative 6 Feedstock wt. avg. 1 Product shipments barrel (wt. value (2)x(3) value factor distri. duties (mbbls) avg.) actual (3)/(8) (5)x(2) (6)x(10) (9)--------------------------------------------------------------------------------------------------------------------------------------------------------Motor Gasoline.......................................... 19,977 $35.27 $704,589 1.095716 21,889 $2,298Total Alkylate.......................................... 22,907 41.84 958,429 1.299823 29,775 3,126Heavy Reformate......................................... 58,164 30.66 1,783,308 .952499 55,401 5,817Reformer Feed........................................... 100,279 30.54 3,062,521 .948771 95,141 9,990Raffinates.............................................. 170,293 29.69 5,055,999 .922365 157,072 16,493Jet Fuel................................................ 168,433 30.42 5,123,732 .945043 159,176 16,713 ----------------------------------------------------------------------------------------------- Total............................................... 540,053 .............. $16,688,578 .............. 518,454 54,437 .............. .............. .............. .............. (9) (10)--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Consumed = 518,454 x $.105 = $54,437Volumetric Gain 21,599Avg.Value/Bbl Crude Consumed = $16,688,578 ÷ 518,454 = $32.189 (8)Note: No change in amended total duties, because duty is computed on total quantity of class III crude used. The difference is amongst the various products, i.e., estimated weekly CF 7501 duties paid for Motor Gasoline was $2,317, while the reconciled amount as shown above is $2,298. Additional duties owed or refunds due would depend on the reconciliation of the weekly entry as an entirety.
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VII. Weekly entry, monthly manufacturing period, relative values calculated on prior manufacturing period's actual weighted average values. The prior period (PP) values are set forth below:
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------------------------------------------------------------------------ Value/Barrel Product (wt. avg.)------------------------------------------------------------------------Motor Gasoline.......................................... § 35.28Total Alkylate.......................................... 41.90Heavy Reformate......................................... 31.78Reformer Feed........................................... 30.02Raffinates.............................................. 31.10Jet Fuel................................................ 28.80------------------------------------------------------------------------Thereafter, the information provided or both the CF 3461 and CF 7501 filed for each weekly entry with respect to relative values would remain the same. The only estimated amount would be the quantity to be removed on the CF 3461 as shown below. On the CF 3461 the refiner estimates the following shipments and uses a prior manufacturing period's actual weighted average values.
---------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel (PP) 4 Total (mbbls) (wt. avg.) value----------------------------------------------------------------------------------------------------------------Week 1 Motor Gasoline.............................................. 20,000 $35.28 $705,600 Total Alkylate.............................................. 25,000 41.90 1,047,500 Heavy Reformate............................................. 60,000 31.78 1,906,800 Reformer Feed............................................... 110,000 30.02 3,302,200 Raffinates.................................................. 200,000 31.10 6,220,000 Jet Fuel.................................................... 200,000 28.80 5,760,000 ----------------------------------------------- Total..................................................... 615,000 .............. 18,942,100----------------------------------------------------------------------------------------------------------------Attributed Feedstock_Class III Crude: 615,000 @ $.105 = $64,575 (estimated duties)On the CF 7501, the refiner reports the following shipments and uses a prior manufacturing period's actual average values.
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 5 Relative 6 Feedstock 7 Liq. 1 Product shipments barrel (PP) 4 Total value factor distri. duties (mbbls) (wt. avg.) value (2)x(3) (3)/(8) (5)x(2) (6)x(10) (9)--------------------------------------------------------------------------------------------------------------------------------------------------------Week 1: Motor Gasoline...................................... 19,977 $35.28 $704,789 1.097219 21,919 $2,902 Total Alkylate...................................... 22,907 41.90 959,803 1.303104 29,850 3,134 Heavy Reformate..................................... 58,164 31.78 1,848,452 .988368 57,486 6,036 Reformer Feed....................................... 100,279 30.02 3,010,376 .933632 93,623 9,830 Raffinates.......................................... 170,293 31.10 5,296,112 .967220 164,710 17,295 Jet Fuel............................................ 168,433 28.80 4,850,870 .895689 150,863 15,840 ----------------------------------------------------------------------------------------------- Total............................................. 540,053 .............. $16,670,402 .............. 518,451 $54,437 .............. .............. .............. .............. (9) (10)--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Used 518,451 x $.105 = $54,437Volumetric Gain 21,602Avg. Value/Barrel Crude Used = $16,670,402 ÷ 518,451 = $32.154 (8)
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel (PP) 4 Total 5 Relative 6 Feedstock 7 Liq. (mbbls) (wt. avg.) value value factor distri. duties--------------------------------------------------------------------------------------------------------------------------------------------------------Week 2: Motor Gasoline...................................... 20,651 $35.28 $728,567 1.096128 22,636 $2,377 Total Alkylate...................................... 23,435 41.90 981,926 1.301808 30,508 3,203 Heavy Reformate..................................... 59,819 31.78 1,901,048 .987386 59,064 6,202 Reformer Feed....................................... 101,167 30.02 3,037,033 .932704 94,359 9,908 Raffinates.......................................... 172,317 31.10 5,359,059 .966259 166,503 17,483 Jet Fuel............................................ 165,291 28.80 4,760,381 .894799 147,903 15,529 ----------------------------------------------------------------------------------------------- Total............................................. 542,680 .............. 16,768,014 .............. 520,973 54,702--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Used 520,973x$.105=$54,702Volumetric Gain 21,707Avg. Value/Barrel Crude Used=$32.186
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel (PP) 4 Total 5 Relative 6 Feedstock 7 Liq. duties (mbbls) (wt. avg.) value value factor distri.--------------------------------------------------------------------------------------------------------------------------------------------------------Week 3: Motor Gasoline...................................... 18,689 $35.28 $659,348 1.099168 20,542 $2,157 Total Alkylate...................................... 21,511 41.90 901,311 1.305418 28,081 2,948 Heavy Reformate..................................... 57,371 31.78 1,823,250 .990124 56,803 5,964 Reformer Feed....................................... 99,707 30.02 2,993,204 .935290 93,254 9,792 Raffinates.......................................... 168,112 31.10 5,228,283 .968938 162,889 17,103 Jet Fuel............................................ 172,092 28.80 4,956,250 .897280 154,414 16,214 ----------------------------------------------------------------------------------------------- Total............................................. 537,482 .............. 16,561,646 .............. 515,983 54,178--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Used 515,983x$.105=$54,178Volumetric Gain 21,499Avg. Value/Barrel Crude Used=$32.097
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel (PP) 4 Total 5 Relative 6 Feedstock 7 Liq. (mbbls) (wt. avg.) value value factor distri. duties--------------------------------------------------------------------------------------------------------------------------------------------------------Week 4: Motor Gasoline...................................... 21,905 $35.28 $772,808 1.097390 24,038 $2,524 Total Alkylate...................................... 22,552 41.90 944,929 1.303306 29,391 3,086 Heavy Reformate..................................... 58,116 31.78 1,846,926 .988522 57,447 6,032 Reformer Feed....................................... 101,058 30.02 3,033,761 .933777 94,365 9,908 Raffinates.......................................... 169,823 31.10 5,281,495 .967371 164,281 17,250 Jet Fuel............................................ 171,493 28.80 4,938,998 .895829 153,627 16,131 ----------------------------------------------------------------------------------------------- Total............................................. 544,947 .............. 16,818,917 .............. 523,149 54,931--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Used 523,149x$.105=$54,931Volumetric Gain 21,798Avg. Value/Barrel Crude Used=$32.149
-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 1 Product shipments barrel (PP) 4 Total 5 Relative 6 Feedstock 7 Liq. (mbbls) (wt. avg.) value value factor distri. duties--------------------------------------------------------------------------------------------------------------------------------------------------------Week 5: Motor Gasoline...................................... 8,990 $35.28 $317,167 1.097698 9,868 $1,036 Total Alkylate...................................... 9,984 41.90 418,330 1.303671 13,016 1,367 Heavy Reformate..................................... 25,351 31.78 805,655 .988799 25,067 2,632 Reformer Feed....................................... 43,492 30.02 1,305,630 .934039 40,623 4,265 Raffinates.......................................... 75,172 31.10 2,337,849 .967642 72,740 7,638 Jet Fuel............................................ 75,795 28.80 2,182,896 .896080 67,919 7,131 ----------------------------------------------------------------------------------------------- Total............................................. 238,784 .............. 7,367,527 .............. 229,233 24,069--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Used 229,233x$.105=$24,069Volumetric Gain 9,551Avg. Value/Barrel Crude Used=$32.14At the end of the month, the refiner must calculate its actual weighted average values for use in the subsequent period.
Reconciliation of Relative Value for the Subsequent Period-------------------------------------------------------------------------------------------------------------------------------------------------------- 2 PF 3 Value/ 5 Relative 7 Liq. 1 Product shipments barrel (PP) 4 Total value factor 6 Feedstock duties (mbbls) (wt. avg.) value (2x3) (3)/(8) distri. (5x2) (6x(10) (9)--------------------------------------------------------------------------------------------------------------------------------------------------------Month End: Motor Gasoline...................................... 90,212 $35.27 $3,181,777 1.095682 98,844 $10,379 Total Alkylate...................................... 100,389 41.84 4,200,276 1.299783 130,484 13,701 Heavy Reformate..................................... 258,821 30.66 7,935,452 .952470 246,519 25,885 Reformer Feed....................................... 445,703 30.54 13,611,770 .948742 422,857 44,400 Raffinates.......................................... 755,717 29.69 22,437,238 .922336 697,025 73,188 Jet Fuel............................................ 753,104 30.42 22,909,424 .945014 711,694 74,726 ----------------------------------------------------------------------------------------------- Total............................................. 2,403,946 .............. 74,275,937 .............. 2,307,423 242,279 .............. .............. .............. .............. (9) (10)--------------------------------------------------------------------------------------------------------------------------------------------------------Class III Crude Used 2,307,423x$.105=$242,279Volumetric Gain 96,523Avg. Value/Barrel Crude Used=$74,275,937÷2,307,423=$32.19 (8)Note: Actual monthly reconciliation data could result in attributions on a product basis that are less than or greater than weekly distributions. This is due to the ``weighing'' of the data i.e., motor gasoline on a weekly basis was $10,996 as compared to $10,379 as above. No additional duties are due to the averaging.
