[Federal Register Volume 59, Number 244 (Wednesday, December 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31358]


[[Page Unknown]]

[Federal Register: December 21, 1994]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 39-94]

 

Foreign-Trade Zone 149--Freeport, TX; Application for Subzone, 
Hoffmann-La Roche Inc. (Vitamins and Fine Chemicals), Brazoria County, 
TX (Freeport Area)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Freeport, Texas, grantee of FTZ 149, 
requesting special-purpose subzone status for the vitamin and fine 
chemical manufacturing plant of Hoffmann-La Roche Inc., in Brazoria 
County, Texas (Freeport area). 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 November 29, 1994.
    Hoffmann-La Roche Inc. (Roche), is a health care products company 
with annual revenue of approximately $3 billion in 1993. Its principal 
businesses include prescription pharmaceuticals, diagnostic products 
and clinical laboratory testing services, home health care services, 
vitamins for human and animal nutrition, and animal pharmaceutical 
products.
    Roche's new Freeport production facility (731 acres, 183,920 sq. 
ft., 11 bldgs.) is located at 1000 County Road 277, Brazoria County, 
Texas, some 60 miles southeast of Houston. The facility (some 100 
employees) is primarily used to produce beta carotene crystalline 
(previtamin A used in the food processing and pharmaceutical 
industries). It also produces intermediate chemicals such as C-25 
aldehyde and vinyl salt. At full production nearly 80 percent of the 
beta carotene crystalline and all of the C-25 aldehyde and vinyl salt 
will be exported.
    Currently, foreign-sourced materials account for some 36 percent of 
the finished product value and include the following specific 
ingredients: Beta ionone, triphenylphosphine and its oxide, C10-
dialdehyde, vinylol and etinol.
    Zone procedures would exempt Roche from Customs duty payments on 
foreign materials used in production for export. On domestic sales, the 
company would be able to choose the duty rates that apply to the 
finished product (beta carotene crystalline--3.1%). The duty rates on 
foreign-sourced items used to produce beta carotene crystalline are: 
Beta ionone, 6.4%; triphenylphosphine, 17.7%; and C10-dialdehyde, 5.6%. 
The application indicates that the savings from zone procedures will 
help improve the plant's international competitiveness.
    In accordance with the Board's regulations, a member of the FTZ 
Staff has been designated examiner to investigate the application and 
report to the Board. Public comment is invited from interested parties. 
Submissions (original and 3 copies) shall be addressed to the Board's 
Executive Secretary at the address below. The closing period for their 
receipt is February 21, 1995. Rebuttal comments in response to material 
submitted during the foregoing period may be submitted during the 
subsequent 15-day period (to March 6, 1995.).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce District Office, #1 Allen Center, Suite 
1160, 500 Dallas Street, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW., 
Washington, DC 20230

    Dated: December 13, 1994.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 94-31358 Filed 12-20-94; 8:45 am]
BILLING CODE 3510-DS-P