[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Notices]
[Pages 37497-37498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17640]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 34-99]


Foreign-Trade Zones 19--Omaha, NE; Application for Foreign-Trade 
Subzone Status, Zeneca Inc. (Agricutural Chemical Products) Omaha, NE

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Dock Board of the City of Omaha, grantee of FTZ 19, 
requesting special-purpose subzone status for the manufacturing 
facilities (agricultural chemical products) of Zeneca Inc. (Zeneca), 
located in Omaha, Nebraska. The application was submitted pursuant to 
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 
June 25, 1999.
    The Zeneca facility (42 acres, 252,000 sq. ft. + 223,000 proposed) 
is located at 4111 Gibson road in Omaha, Nebraska. The facilities (63 
full-time and 30 seasonal employees) produce agricultural chemical 
products, which Zeneca intends to formulate, test, package, and 
warehouse under FTZ procedures. The principal product to be formulated 
initially under subzone procedures is the herbicide which is marketed 
under the trade name Achieve. Other products sourced from 
this site are the Force 3G insecticide, the 
Ordram 15GM, FulTime, Surpass EC, 
Eradicane, Eptam, and Ro-Neet 
herbicides, the Turbocharge crop adjuvant, and the 
Bonzi plant growth regulator. Zeneca indicates that other 
products may be sourced from this facility in the future, and that 
initial U.S. value added will be 15 percent of finished products' 
value.
    Zeneca has indicated that the following inputs will be the 
principal products to be imported initially under FTZ procedures: 
tralkoxydim; azoxystrobin; n-phosphonomethylglycyne trimethyl sulfonium 
salt; brodifcaoum; paclobutrazol; daconil; bromoxynil; cyhalothrin CS; 
and pirimiphosmethyl. Current duty rates for these inputs range from 
3.7 to 10.7 percent.
    Zone procedures would exempt Zeneca from Customs duty payments on 
foreign components used in export production. On its domestic sales, 
Zeneca would be able to choose the lower duty rate that applies to the 
finished products (6.5 percent) for the foreign inputs noted above. 
Zeneca would be able to avoid duty on foreign inputs which become 
scrap/waste, estimated at 0.5 percent of imported inputs. The 
application indicates that FTZ procedures would also allow Zeneca to 
eliminate its current use of a foreign ``toll'' manufacturer to process 
the Achieve herbicide, thus realizing savings through the 
internalization of this function. FTZ status may also make a site 
eligible for benefits provided under state/local programs. 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 September 10, 1999. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period to September 27, 1999.

[[Page 37498]]

    A copy of the application and the accompanying exhibits will be 
available for public inspection at each of the following locations:

Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, NW., 
Washington, DC 20230
U.S. Department of Commerce Export Assistance Center, 11135 ``O'' 
Street, Omaha, Nebraska 68137

    Dated: June 30, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-17640 Filed 7-9-99; 8:45 am]
BILLING CODE 3510-DS-P