[Federal Register Volume 67, Number 12 (Thursday, January 17, 2002)]
[Notices]
[Pages 2401-2402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1271]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 4-2002]


Foreign-Trade Zone 7--Mayaguez, Puerto Rico; Application for 
Subzone, Schering-Plough Products, L.L.C., (Pharmaceutical Products), 
Las Piedras, Puerto Rico

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Puerto Rico Industrial Development Corporation, 
grantee of FTZ 7, requesting special-purpose subzone status for the 
pharmaceutical manufacturing plant of Schering-Plough Products, L.L.C. 
in Las Piedras, 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 January 10, 2002.
    Schering-Plough's Las Piedras plant (3 bldgs./401,814 sq. ft. 
(including 84,814 square feet proposed) on 40 acres) is located at 
State Road No. 183, Km 2.6, Las Piedras, Puerto Rico. The facility (500 
employees) produces finished pharmaceutical products and their

[[Page 2402]]

intermediates, including Theo-Dur, K-Dur, Uni-
Dur, Normodayne/Labetalol, Eulexin, 
Claritin, and Rebetol. Foreign-sourced materials 
will account for some 40-50 percent of finished product value, and 
include items from the following general categories: 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.
    Zone procedures would exempt Schering-Plough from Customs duty 
payments on foreign materials used in production for export. Some 30-35 
percent of the plant's shipments are exported. On domestic sales, the 
company would be able to choose the duty rates that apply to the 
finished products and intermediates (primarily duty-free) rather than 
the duty rates that would otherwise apply to the foreign-sourced 
materials noted above (duty-free to 20.0 percent). At the outset, zone 
savings would primarily involve choosing the finished product duty rate 
on a cholesterol absorption inhibitor, (HTSUS 3004.90.9060-duty-free), 
rather than the rate for a foreign-sourced active ingredient (bulk 
ezetimibe, HTSUS 2933.79.0800-7.9%). The application indicates that the 
savings from zone procedures will 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 is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at one of the following addresses:
    1. Submissions Via Express/Package Delivery Services: Foreign-
Trade-Zones Board, U.S. Department of Commerce, Franklin Court 
Building--Suite 4100W, 1099 14th St. NW, Washington, DC 20005; or
    2. Submissions Via the U.S. Postal Service: Foreign-Trade-Zones 
Board, U.S. Department of Commerce, FCB-Suite 4100W, 1401 Constitution 
Ave. NW., Washington, DC 20230.
    The closing period for their receipt is March 18, 2002. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period (to April 2, 
2002).
    A copy of the application and accompanying exhibits will be 
available for public inspection at the Office of the Foreign-Trade 
Zones Board's Executive Secretary at address Number 1 listed above, and 
at the U.S. Department of Commerce Export Assistance Center, 525 F.D. 
Roosevelt Ave., Suite 905, San Juan, PR 00918.

    Dated: January 10, 2002.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 02-1271 Filed 1-16-02; 8:45 am]
BILLING CODE 3510-DS-P