[Federal Register Volume 65, Number 164 (Wednesday, August 23, 2000)]
[Notices]
[Pages 51293-51294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21559]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Dockets 49-2000 and 50-2000]


Foreign-Trade Zone 61--San Juan, Puerto Rico, Expansion of 
Facilities and Manufacturing Authority--Subzone 61D, 61E, Merck, Sharp 
& Dohme Quimica Plants (Pharmaceuticals); Arecibo and Barceloneta, 
Puerto Rico

    Applications have been submitted to the Foreign-Trade Zones Board 
(the Board) by the Puerto Rico Exports Development Corporation (PREDC) 
(formerly known as the Commercial and Farm Development Corporation of 
Puerto Rico), grantee of FTZ 61, requesting on behalf of Merck, Sharp & 
Dohme Quimica de Puerto Rico, Inc. (MSD), to add capacity and to expand 
the scope of manufacturing authority under zone procedures within 
Subzone 61D and 61E, at the MSD plants in Arecibo and Barceloneta, 
Puerto Rico. The applications were formally filed on August 10, 2000.
    Subzone 61D was approved by the Board in 1995 at a single site (1 
bldg./150,000 sq. ft. on 18.45 acres) located at Km. 60, Road PR-2, in 
the municipality of Arecibo, Puerto Rico, with authority granted for 
the manufacture of finished pharmaceuticals (Board Order 741, 60 FR 
27272, 5/23/95). MSD is now proposing to expand acreage, add 2 
buildings and expand the existing building. The proposed subzone would 
then include 3 bldgs. consisting of

[[Page 51294]]

286,000 sq. ft. (a 90% increase) on 38.18 acres.
    Subzone 61E was approved by the Board in 1995 at a single site (76 
bldgs./440,616 sq. ft. on 221 acres) located at Road PR-2, Km. 57, in 
the municipality of Barceloneta, Puerto Rico, with authority granted 
for the manufacture of pharmaceutical bulk chemicals and intermediates 
used in Merck's human and animal health products and finished animal 
health and agricultural chemical products for its AgVet (agricultural/
veterinary) Division (Board Order 742, 60 FR 27272, 5/23/95). MSD is 
now proposing to add 16 buildings and expand existing buildings. The 
proposed subzone would then include 92 bldgs. consisting of 504,756 sq. 
ft. (a 15% increase) on 221 acres.
    The applications also request to expand the scope of authority for 
manufacturing activity conducted under FTZ procedures at Subzone 61D 
and Subzone 61E to include additional general categories of inputs that 
have recently been approved by the Board for other pharmaceutical 
plants. They include chemically pure sugars, empty capsules for 
pharmaceutical use, protein concentrates, natural magnesium phosphates 
and carbonates, gypsum, anhydrite and plasters, petroleum jelly, 
paraffin and waxes, sulfuric acid, other inorganic acids or compounds 
of nonmetals, ammonia, zinc oxide, titanium oxides, fluorides, 
chlorates, sulfates, salts of oxometallic acids, radioactive chemical 
elements, compounds of rare earth metals, acyclic hydrocarbons, 
derivatives of phenols or peroxides, acetals and hemiacetals, 
phosphoric esters and their salts, diazo-compounds, glands for 
therapeutic uses, wadding, gauze and bandages, pharmaceutical glaze, 
hair preparations, lubricating preparations, albumins, prepared glues 
and adhesives, catalytic preparations, diagnostic or laboratory 
reagents, prepared binders, acrylic polymers, self-adhesive plates and 
sheets, other articles of vulcanized rubber, plastic cases, cartons, 
boxes, printed books, brochures and similar printed matter, carboys, 
bottles, and flasks, stoppers, caps, and lids, aluminum foil, tin 
plates and sheets, taps, cocks and valves, and medical instruments and 
appliances.
    FTZ procedures would exempt MSD from Customs duty payments on the 
foreign components used in export activity. On its domestic sales, the 
company would be able to elect the duty rates that applies to finished 
products (primarily duty-free for finished pharmaceuticals and up to 
14.6% for intermediates) for the foreign materials noted above (duty 
rates ranging from duty-free to 14.5%). The application indicates that 
the expanded use of FTZ procedures will help improve MSD'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 October 23, 2000. Rebuttal comments in 
response to material submitted during the foregoing period may be 
submitted during the subsequent 15-day period (to November 6, 2000).
    Copies of the applications will be available for public inspection 
at the following locations:

U.S. Department of Commerce, Export Assistance Center, 525 F.D. 
Roosevelt Ave., Suite 905, San Juan, PR 00918
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
4008, U.S. Department of Commerce, 14th Street and Pennsylvania Avenue, 
NW, Washington, DC 20230.

    Dated: August 14, 2000.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 00-21559 Filed 8-22-00; 8:45 am]
BILLING CODE 3510-DS-P