[Federal Register Volume 69, Number 231 (Thursday, December 2, 2004)]
[Notices]
[Pages 70121-70122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26565]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 53-2004]


Foreign-Trade Zone 7--Mayaguez, PR; Application for Subzone, 
Ortho Biologics, LLC (Pharmaceutical Intermediates), Manat[iacute], PR

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Puerto Rico Industrial Development Company (PRIDCO), 
grantee of FTZ 7, requesting special-purpose subzone status for the 
pharmaceutical intermediate manufacturing facility of Ortho Biologics, 
LLC (OBI) in Manati, Puerto Rico. OBI is a subsidiary of Johnson & 
Johnson. 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 
November 19, 2004.
    The OBI facility is located within a Johnson & Johnson-affiliated 
complex (10 buildings, 128,548 sq. ft. on 58.518 acres) located at 
State Road No. 2, Km. 45.6 in Manati, Puerto Rico. The property is 
owned by Ortho-McNeil-Janssen Pharmaceutical, Inc., which produces 
finished pharmaceutical products at one of 2 manufacturing plants at 
the site. Only the OBI plant will be activated at this time. The OBI 
plant (218 employees) is used for warehousing and manufacturing of EPO 
bulk intermediate; activities which OBI is proposing to perform under 
FTZ procedures. Most of the intermediate is exported for further 
processing into a hormone which stimulates red blood cell production 
for the treatment of anemia. Foreign-sourced materials will account for 
some 14 percent of the bulk intermediate's value, and include Q-
sepharose, citric acid, TRIS-HCL and Tris Base.
    Zone procedures would exempt OBI from Customs duty payments on 
foreign materials used in production for export. At least 95 percent of 
the EPO bulk intermediate will be exported. The remaining five percent 
will be shipped domestically to a contractor to be processed into 
finished product that is then exported to Canada. On domestic 
shipments, the company would be able to defer Customs duty payments on 
foreign materials, and to choose the duty rate that applies to the EPO 
bulk intermediate (duty-free), instead of the rates otherwise 
applicable to the foreign input materials noted above (predominantly 
active ingredient, Q-sepharose, 3.9% ad valorem). OBI would also be 
able to avoid duty on

[[Page 70122]]

foreign input which becomes scrap/waste, estimated at 10 percent of 
imported material. The application also indicates that OBI may realize 
logistical/procedural benefits from subzone status. All of the above-
cited savings from zone procedures could 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 January 31, 2005. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period (to February 15, 
2005).
    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: November 19, 2004.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 04-26565 Filed 12-1-04; 8:45 am]
BILLING CODE 3510-DS-P