[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31971]


[Federal Register: December 28, 1994]


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DEPARTMENT OF COMMERCE
[Docket 42-94]


Foreign-Trade Zone 61--San Juan, Puerto Rico; Application for 
Subzone; IPR Pharmaceuticals, Inc. (Pharmaceutical Products) Guayama 
and Carolina, Puerto Rico

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Commercial and Farm Credit and Development 
Corporation of Puerto Rico, grantee of FTZ 61, requesting special-
purpose subzone status for the pharmaceutical manufacturing facilities 
(345 employees) of IPR Pharmaceuticals, Inc. (IPR), in Guayama and 
Carolina, Puerto Rico (San Juan 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 December 16, 1994.
    IPR is a wholly-owned subsidiary of Zeneca Group PLC (U.K.), a 
bioscience company comprising three global businesses--pharmaceuticals, 
agrochemicals and seeds, and specialty products. Zeneca Group was 
created as part of the 1993 worldwide reorganization of Imperial 
Chemical Industries PLC (U.K.) along industry lines.
    IPR's Guayama plant (7 bldgs./approx. 96,000 sq. ft. on 49 acres) 
is located at State Road No. PR53, km. 84, Guayama, Puerto Rico, some 
40 miles south of San Juan. The facility is used to produce 
intermediate and bulk pharmaceuticals that are mainly used in the 
manufacture of finished pharmaceutical products in the Carolina 
facility. The bulk chemicals are used in cardiovasular products, and 
include atenolol and lisinopril at this time.
    IPR's Carolina plant (2 bldgs./approx. 116,000 sq. ft. on 5 acres) 
is located at Sabana Gardens Industrial Park, Main Street, Carolina, 
Puerto Rico, some 10 miles east of San Juan. The facility is used to 
produce finished pharmaceuticals, primarily cardiovasular products, 
including TENORMIN, TENORETIC, ZESTRIL 
and ZESTORETIC. In addition, the company is requesting to use 
zone procedures for drugs currently in development that may also be 
produced at the Carolina facility, including ACCOLATE asthma 
treatment. The active ingredients for a number of these products are or 
would be sourced abroad. Foreign-sourced materials account for some 30 
percent of finished product value.
    Zone procedures would exempt IPR 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 products (6.3%). The duty rates on foreign-sourced items range 
from 6.9 percent to 13.5 percent. At the outset, zone savings would 
primarily involve choosing the finished product duty rate on 
TENORMIN and TENORETIC (6.3%), rather than the 
rates for their foreign active ingredients: 4-hydroxiphenyl acetamide 
(13.5%); ester, kaneka LP1 (8%); and chlorthalidone (6.9%). The 
application indicates that the savings from zone procedures will help 
improve the plants' 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 
[60 days from date of publication]. Rebuttal comments in response to 
material submitted during the foregoing period may be submitted during 
the subsequent 15-day period (to [75 days from date of publication]).
    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, Room G-55, Federal 
Building, Chardon Avenue, San Juan (Hato Rey), Puerto Rico 00918
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 19, 1994.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 94-31971 Filed 12-27-94; 8:45 am]
BILLING CODE 3510-DS-P