International Trade Logistics and Potential Savings Opportunities:
Buckeye’s terminal facilities in Puerto Rico, Michigan, and the Bahamas provide certain import and export advantages for our customers.
- In the US (including Puerto Rico), certain of our facilities are permitted to provide services as a Foreign Trade Zone (FTZ).An FTZ is an area that is physically located within the customs territory of the US, but is considered outside of the customs territory of the US for certain purposes such as duties and certain taxes. The economic advantages of participating in an FTZ are:
- Increasing cash flow – Duties and certain taxes on arriving product to an FTZ are deferred until the product leaves the FTZ for US consumption
- Eliminating duty – Imported and nonduty paid products brought into the FTZ and subsequently exported never enter the US customs territory, and are therefore exempt from duty and certain taxes
- Reducing costs – Using weekly rather than daily entries of products to be consumed in the US may reduce the fees associated with these imports
- In the Bahamas, our facility is situated within the Grand Bahamas Port Authority’s Freeport Free Trade Zone area. Imports to the facility are granted exemption from customs duties. The economic advantages of participating in a Free Trade Zone are:
- Increasing cash flow – Duties on arriving product to the Buckeye Bahamas Hub Free Trade Zone are deferred until the product leaves the facility for island destinations
- Eliminating duty – Imported products brought into the Buckeye Bahamas Hub Free Trade Zone and subsequently exported never enter the Bahamian Customs territory, and are therefore exempt from duty
Specifically, the following facilities may be utilized to provide logistical savings for international commerce:
Buckeye Taylor Terminal
Buckeye’s terminal in Taylor, Michigan, the Taylor Terminal, includes five storage tanks providing the ability to store approximately 276,200 barrels of bonded turbine fuel and jet fuel. The site also has two storage tanks owned by Shell and operated by Buckeye on behalf of Shell with approximately 92,000 barrels of bonded turbine fuel and jet fuel capacity. All 7 tanks are designated as FTZ status under FTZ 70, Site #12.
As a result, customers operating under an agreement with Buckeye for FTZ storage can achieve benefits such as those described above.
Buckeye Dearborn Terminal
Buckeye’s terminal in Taylor, Michigan, the Dearborn Terminal, includes 5 storage tanks with approximately 255,100 barrels of bonded turbine fuel and jet fuel tankage designated as FTZ status under FTZ 70, Site #12. As a result, customers operating under an agreement with Buckeye for FTZ storage can achieve benefits such as those described above.
Buckeye Yabucoa Terminal
Buckeye’s refined petroleum products terminal in Yabucoa, Puerto Rico, the Yabucoa Terminal, includes 44 storage tanks with approximately 4.6 million barrels of gasoline, jet fuel, diesel, fuel oil, and crude oil storage capacity.
Buckeye Caribbean Terminals LLC (BCT), the owner of Yabucoa Terminal, operates as FTZ subzone #61I. As a result, customers operating under an agreement with BCT for FTZ storage can achieve a number of benefits.
Buckeye Bahamas Hub
Buckeye Bahamas Hub, located in Freeport, Grand Bahamas, has an aggregate storage capacity of approximately 26 million barrels. It is operated as a fully integrated terminalling business offering customers storage, berthing, heating, transshipment, blending, treating, bunkering, and other ancillary services. It also operates under a license with the Grand Bahama Port Authority.
As a result, customers can benefit from Buckeye Bahamas Hub's use of the Free Trade Zone for imports of petroleum products for storage within the facility.