[Federal Register Volume 70, Number 247 (Tuesday, December 27, 2005)]
[Notices]
[Pages 76444-76445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24439]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket No. 64-2005]


Foreign-Trade Zone 93--Raleigh-Durham, NC; Application for 
Subzone, Merck & Company, Inc. (Pharmaceutical Products), Durham, NC

    An application has been submitted to the Foreign-Trade Zones (FTZ) 
Board (the Board) by the Triangle J Council of Governments, grantee of 
FTZ 93, requesting special-purpose subzone status for the 
pharmaceutical manufacturing facility of Merck & Company, Inc. (Merck), 
located in Durham, North Carolina. 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 December 15, 2005.
    The proposed subzone (15 buildings of 639,000 square feet on 262 
acres, which includes a possible expansion of 11 buildings totaling 
400,000 sq. ft.) is comprised of one site located at 5325 Old Oxford 
Road, in Durham, North Carolina. The Merck facility is currently under 
construction and the first phase is scheduled to be completed in May 
2006. The plant (200 employees) will manufacture, test, package, and 
warehouse pharmaceutical products, activities which it is proposing to 
perform under zone procedures.
    Initially, the company is proposing to produce vaccines for the 
prevention of measles, mumps, and rubella (MMR) and chicken pox under 
zone procedures at the plant. The applicant notes that material sourced 
from abroad (human albumin, HTSUS 3002.10.0190--duty-free) may 
initially represent less than half of the value of the finished 
products manufactured under the proposed primary scope.
    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, 
5403, 7010, 7607, 8004, 8104, 8309, 8481, 9018, and 9602. Duty rates 
for these materials range from duty-free to 20%.
    Final products that may be produced from the inputs listed above 
include these general HTSUS categories: 2302,

[[Page 76445]]

2309, 2902, 2903, 2904, 2905, 2906, 2907, 2909, 2910, 2912, 2913, 2914, 
2915, 2916, 2917, 2918, 2920, 2921, 2922, 2923, 2924, 2925, 2926, 2928, 
2930, 2931, 2932, 2933, 2934, 2935, 2936, 2937, 2938, 2939, 2941, 2942, 
3001, 3002, 3003, 3004, 3006, 3802, 3804, 3808, 3809, 3824, 3910, 3911, 
3912, 3913, and 3914. Duty rates for these products range from duty-
free to 7.5%.
    Zone procedures would exempt Merck from Customs duty payments on 
foreign materials used in production for export. 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 to 7.5 %) instead of the rates otherwise applicable 
to the foreign input materials (duty-free--20%). Merck would also be 
able to avoid duty on foreign inputs which become scrap/waste, 
estimated at two percent of foreign material. Merck may also realize 
logistical/procedure and other benefits from subzone status, including 
zone to zone transfers between other Merck subzones. The application 
indicates that the savings from FTZ procedures would help improve the 
international competitiveness of Merck's U.S. operations.
    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 4100 W, 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 February 27, 2006. Rebuttal 
comments in response to material submitted during the foregoing period 
may be submitted during the subsequent 15-day period March 13, 2006.
    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, 10900 
World Trade Blvd., Suite 110, Raleigh, North Carolina, 27617.

    Dated: December 16, 2005.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 05-24439 Filed 12-23-05; 8:45 am]
BILLING CODE 3510-DS-M