[Federal Register Volume 70, Number 100 (Wednesday, May 25, 2005)]
[Notices]
[Pages 30080-30081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10462]


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 DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 23-2005]


Foreign-Trade Zone 7 Mayaguez, Puerto Rico, Application for 
Subzone, Abbott Laboratories (Pharmaceutical Products), Barceloneta, 
Puerto Rico

    An application has been submitted to the Foreign-Trade Zones (FTZ) 
Board (the Board) by the Puerto Rico Industrial Development 
Corporation, grantee of FTZ 7, requesting special-purpose subzone 
status for the pharmaceutical manufacturing facilities of Abbott 
Pharmaceuticals PR LTD. (APPR), Abbott Health Products, Inc. (AHP), and 
Abbott Biotechnology LTD (ABL), subsidiaries of Abbott Laboratories 
(Abbott), located in Barceloneta, Puerto Rico. 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 May 17, 2005.
    The proposed subzone (123 buildings of 2,151,957 square feet 
(approx. 90% mfg. sq. ft.) on 276 acres, with a possible expansion of 
34 buildings of 2,330,579 sq. ft.) is comprised of one site located at 
Road No. 2, Km 58.0, Barceloneta, Puerto Rico. The Abbott facility 
(2,200 employees) manufactures, tests, packages, and warehouses 
pharmaceutical and diagnostic products, activities which it is 
proposing to perform under zone procedures.
    It will be used to produce finished dose pharmaceutical 
formulations and diagnostic products. Initially, the company is 
proposing to produce the antibiotics, clarythromycin and erythromycin; 
and Depakote[supreg][subcom] a treatment for epilepsy, migraine and 
bipolar disorder, under zone procedures. Materials sourced from abroad 
represent 5-10 percent of the value of the finished products 
manufactured under the proposed primary scope. Inverted tariff savings 
will initially result from the following ingredients: Beta Carb (HTSUS 
2917.19.7050), hexamethyldisilozane (HTSUS 2931.00.9010), and 
hypromellose phtalate (HTSUS 3912.90.0090). Some 60 to 80 percent of 
the proposed production under zone procedures will be exported.
    The application also requests authority to include a broad range of 
inputs and pharmaceutical final products that it may produce under FTZ 
procedures in the future. (New major activity in these inputs/products 
could require review by the FTZ Board.) General HTSUS categories of 
inputs include: 1108, 1212, 1301, 1302, 1515, 1516, 1520, 1521, 1702, 
1905, 2106, 2207, 2302, 2309, 2501, 2508, 2510, 2519, 2520, 2526, 2710, 
2712, 2807, 2809, 2811, 2814, 2815, 2816, 2817, 2821, 2823, 2825, 2826, 
2827, 2829, 2831, 2832, 2833, 2835, 2836, 2837, 2839, 2840, 2841, 2842, 
2844, 2846, 2851, 2901, 2902, 2903, 2904 (except for 2904.20.5000), 
2905, 2906, 2907, 2908, 2909, 2910, 2911, 2912, 2913, 2914, 2915, 2916, 
2917, 2918, 2919, 2920, 2921, 2922, 2923, 2924, 2925, 2926, 2927, 2928, 
2929, 2930, 2931, 2932, 2933, 2934, 2935, 2936, 2937, 2938, 2939, 2940, 
2941, 2942, 3001, 3002, 3003, 3004, 3005, 3006, 3102, 3104, 3301, 3302, 
3305, 3401, 3402, 3403, 3404, 3502, 3503, 3505, 3506, 3507, 3802, 3804, 
3808, 3809, 3815, 3822, 3823, 3824, 3906, 3910, 3911, 3912, 3913, 3914, 
3915, 3919, 3920, 3921, 3923, 4016, (4202.92.1000, 4202.92.9060, 
4202.99.1000, 4202.99.5000 (plastic only)), 4817, 4819, 4901, 4902, 
7010, 7607, 8004, 8104, 8309, 8481, 9018, 9602. Duty rates for these 
materials range from duty-free to 17%.
    Final products that may be produced from the inputs listed above 
include these general HTSUS categories: 2302, 2309, 2825, 2902, 2903, 
2904, 2905, 2906, 2907, 2909, 2910, 2912, 2913, 2914, 2915, 2916, 2917, 
2918, 2920, 2921, 2922, 2924, 2925, 2926, 2928, 2930, 2931, 2932, 2933, 
2934, 2935, 2936, 2937, 2938, 2939, 2940, 2941, 2942, 3001, 3002, 3003, 
3004, 3006, 3503, 3507, 3802, 3804, 3808, 3809, 3824, 3910, 3911, 3912, 
3913, 3914 and 9018. Duty rates for these products range from duty-free 
to 7.5%.
    Zone procedures would exempt Abbott from Customs duty payments on 
foreign materials used in production for export (some 60-80% of 
shipments). 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 finished products (duty-free) instead of the rates 
otherwise applicable to the foreign input materials (3.7% - 5.2%). The 
application indicates that the savings from zone procedures would help 
improve Abbott'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:

[[Page 30081]]

    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, D.C. 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, D.C. 20230.
    The closing period for their receipt is July 25, 2005. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period (to August 8, 
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, Centro 
Internacional de Mercadeo Torre II, Suite 702, Carr. 165
    Guaynabo, Puerto Rico 00968-8058.

    Dated: May 19, 2005.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 05-10462 Filed 5-24-05; 8:45 am]
BILLING CODE 3510-DS-S