[Federal Register Volume 63, Number 225 (Monday, November 23, 1998)]
[Notices]
[Page 64677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31271]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 52-98]


Foreign-Trade Zone 15--Kansas City, MO, Expansion of Facilities 
and Manufacturing Authority--Subzone 15D, Bayer Corporation Plant 
(Pharmaceuticals), Kansas City, Missouri

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Greater Kansas City Foreign-Trade Zone, Inc., 
grantee of FTZ 15, requesting on behalf of the Bayer Corporation 
(Bayer), to expand the scope of manufacturing authority under zone 
procedures and to add two sites within Subzone 15D, at the Bayer plant 
in Kansas City, Missouri. It was formally filed on November 16, 1998.
    Subzone 15D was approved by the Board in 1988 at a single site (59 
bldgs./750,000 sq. ft. on 112 acres) located at 8400 Hawthorn Road in 
Kansas City, Missouri, with authority granted for the manufacture of 
agricultural and specialty chemicals for the control of insects, weeds 
and plant diseases (Board Order 440, 54 FR 38413, September 18, 1989).
    Bayer is now proposing to add two sites (300 employees) and expand 
the scope of authority for manufacturing activity conducted under FTZ 
procedures at Subzone 15D to include animal and human pharmaceutical 
products. Proposed Site 2 (10 bldgs./720,000 sq. ft. on 55 acres after 
completion of current expansion) is the main production site of Bayer's 
Animal Health Division, located at 12707 Shawnee Mission Parkway, 
Shawnee, Kansas, some 15 miles southwest of existing Site 1. 
(Approximately, one-third of the land is leased from the City of 
Shawnee.) The company may also produce human health pharmaceutical 
products at the Shawnee plant in the future. Proposed Site 3 (1 bldg./
164,000 sq. ft. on 3.76 acres) is a leased warehouse located at 5101 
Speaker Road, Kansas City, Kansas, some 10 miles west of Site 1.
    At the outset, the company is expecting to manufacture Co-
Ral, Lysoff, Spotton and 
Tiguvon animal health products (all HTSUS 3808.10.2500, 
duty rate .4 cents/kg. + 7.1%) under zone procedures. Foreign-sourced 
materials, including coumafos (HTSUS 2932.29.10, duty rate 10.1%) and 
fenthion (HTSUS 2920.10.4000, duty rate 10.1%), will account for, on 
average, 30 percent of material value. The company may also purchase 
from abroad other ingredients and materials related to pharmaceutical 
manufacturing activity in the following general categories: Gums, 
starches, waxes, vegetable extracts, mineral oils, sugars, empty 
capsules, protein concentrates, prepared animal feed, mineral products, 
inorganic acids, chlorides, clorates, sulfites, sulfates, phosphates, 
cyanides, silicates, radioactive chemicals, rare-earth metal compounds, 
hydroxides, hydrazine and hydroxylamine, chlorides, phosphates, 
carbonates, hydrocarbons, alcohols, phenols, ethers, epoxides, acetals, 
aldehydes, ketone function compounds, mono- and polycarboxylic acids, 
phosphoric esters, amine-, carboxymide, nitrile- and oxygen-function 
compounds, heterocyclic compounds, sulfonamides, insecticides, 
rodenticides, fungicides and herbicides, fertilizers, vitamins, 
hormones, antibiotics, gelatins, enzymes, pharmaceutical glaze, 
essential oils, albumins, gelatins, activated carbon, residual lyes, 
acrylic polymers, silicones, color lakes, soaps and detergents, various 
packaging and printing materials, medicaments, pharmaceutical products, 
and instruments and appliances used in medical sciences.
    FTZ procedures would exempt Bayer from Customs duty payments on the 
foreign components used in export activity (about 5% of shipments). On 
its domestic sales, the company would be able to elect the duty rate 
that applies to finished products (duty-free to 1.4 cents/kg. + 13.9%) 
for the foreign components noted above (duty rates ranging from duty-
free to 16.3%). The application indicates that the savings from FTZ 
procedures will help improve Bayer's international competitiveness.
    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 January 22, 1999. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to February 2, 1999).
    A copy of the application will be available for public inspection 
at the following locations:

U.S. Department of Commerce, Export Assistance Center, 601 East 12th 
St., Room 635, Kansas City, Missouri 64106
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th Street & Pennsylvania Avenue, 
NW, Washington, DC 20230

    Dated: November 16, 1998.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 98-31271 Filed 11-20-98; 8:45 am]
BILLING CODE 3510-DS-P