[Federal Register Volume 61, Number 177 (Wednesday, September 11, 1996)]
[Notices]
[Pages 47870-47871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23111]


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DEPARTMENT OF COMMERCE
[Docket 66-96]


Foreign-Trade Zone 61--San Juan, PR; Application for Subzone 
Status: PepsiCo of Puerto Rico, Inc. (Soft Drink Concentrates) Cidra, 
Puerto Rico

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Commercial and Farm Credit and Development 
Corporation for Puerto Rico, grantee of FTZ 61, requesting special-
purpose subzone status for the soft drink flavoring concentrate 
manufacturing plant of PepsiCo of Puerto Rico, Inc. (PPR) (subsidiary 
of PepsiCo, Inc.), located in Cidra, Puerto Rico. 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 August 22, 1996.
    The PPR plant (35,000 sq.ft.) is located at Streets A and B (Lots 9 
and 10) within the Cidra Industrial Area of the City of Cidra, about 25 
miles south of San Juan. The facility (160 employees) is used to 
produce PepsiCo, Inc., branded soft drink flavoring concentrates for 
products such as ``Pepsi'', ``Diet Pepsi'', and ``Mountain Dew'', that 
are sold to licensed bottling companies in the U.S. and abroad. The 
application indicates that ingredients purchased from foreign sources 
include: sodium benzoate, sodium citrate dihydrate, citric acid, 
erythoribic acid, caffeine, gum arabic, FD&C yellow #5, citrus pectin, 
aspartame, liquid invert sugar, orange juice solids, and potassium 
citrate (duty rate range: free-18.6%; 8.4 cents/kg).
    Zone procedures would exempt PPR from Customs duty payments on the 
foreign ingredients used in production for export. On domestic sales, 
PPR would be able to choose the duty rate that applies to finished soft 
drink concentrates (10%) for the foreign ingredients noted above. The 
ethanol used in the production process is domestically-sourced, and FTZ 
procedures would provide an alternative means of exempting the ethanol 
from federal excise taxes based on its use in the manufacture of soft 
drink concentrates. The application indicates that the savings from 
zone procedures would 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 on the application is invited from interested 
parties. Submissions (original and three copies) shall be addressed to 
the Board's Executive Secretary at the address below. The closing 
period for their receipt is November 12, 1996. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to November 25, 1996).
    A copy of the application and the accompanying exhibits will be 
available for public inspection at each of the following locations:

    U.S. Export Assistance Center, Federal Building, Room G-55, Chardon 
Avenue, Hato Rey, PR 00918
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue, 
NW., Washington, DC 20230.


[[Page 47871]]


    Dated: August 28, 1996.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 96-23111 Filed 9-10-96; 8:45 am]
BILLING CODE 3510-DS-P