[Federal Register Volume 72, Number 46 (Friday, March 9, 2007)]
[Notices]
[Page 10642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4284]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 3-2007]


Review of Sourcing Change, Foreign-Trade Subzone 43D, Perrigo 
Company, Allegan, Michigan (Ibuprofen Products)

    Pursuant to the regulations of the Foreign-Trade Zones (FTZ) Board 
(the Board), a review has been initiated (under 15 CFR Sec. 
400.28(a)(3)(iii)(A)) of changes in sourcing related to certain 
ibuprofen products at Foreign-Trade Subzone 43D, at the manufacturing 
facilities of the Perrigo Company (Perrigo), in Allegan, Michigan, 
which produce a range of store-brand, over-the-counter (OTC) 
pharmaceutical products.
    In May 2003, the Board filed an application from the City of Battle 
Creek, Michigan, grantee of FTZ 43, requesting special-purpose subzone 
status with certain manufacturing authority for Perrigo. The subzone 
application was approved by the Board on April 13, 2004 (Board Order 
1326, 69 FR 21498, 4/21/04), including the manufacture under FTZ 
procedures of certain OTC pharmaceutical products containing ibuprofen, 
aspirin and acetaminophen. Specific to ibuprofen, Perrigo produces 
finished ibuprofen mixture and finished ibuprofen products (HTSUS 
headings 3003 and 3004, duty-free) using foreign-sourced active 
ingredient ibuprofen (HTSUS 2916.39.15, 6.5% duty rate). On products 
shipped to the U.S. market, the company is able to choose the duty rate 
during Customs entry procedures that applies to the finished ibuprofen 
mixture and products (duty-free) for the otherwise dutiable foreign 
active ingredient (6.5% duty rate) noted above (inverted tariff), as 
described in the application.
    Perrigo has now notified the Board of additional sourcing of 
foreign active ingredient ibuprofen that it may manufacture into OTC 
ibuprofen products under zone procedures. In its original application, 
Perrigo had projected approximately $450,000 (90 percent of its total 
FTZ savings) in annual inverted tariff savings for its OTC ibuprofen, 
acetaminophen and aspirin production. Perrigo's sourcing-change 
submission now projects up to an additional $1.55 million in inverted 
tariff savings tied to the sourcing change for its OTC ibuprofen 
products.
    In accordance with the Board's regulations, a member of the FTZ 
staff has been designated examiner to investigate the sourcing change, 
including its potential to cause ``significant adverse effects'' (15 
CFR 400.28(a)(3)(iii)(A)), and report to the Board.
    Public comment is invited from interested parties. Information 
submitted for the record generally should be in a non-proprietary 
format. If there is a need to submit business proprietary information, 
it should be appropriately marked and summarized or ranged (in the case 
of numerical data) in the public submission, which should be 
accompanied by a single business proprietary version.
    Submissions (original and 3 copies) shall be addressed to the 
Board's Executive Secretary at the address below. The closing period 
for the receipt of the public comment submissions is May 10, 2007. 
Rebuttal comments in response to material submitted during the 
foregoing period may be submitted during the subsequent 15-day period 
through May 25, 2007.
    A copy of the sourcing-change submission will be available for 
public inspection at the following location: Office of the Executive 
Secretary, Foreign-Trade Zones Board, Room 2814B, U.S. Department of 
Commerce, 1401 Constitution Avenue, NW, Washington, D.C. 20230-0002. 
For further information, contact Diane Finver at [email protected] or (202) 482-1367.

    Dated: March 5, 2007.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E7-4284 Filed 3-8-07; 8:45 am]
BILLING CODE 3510-DS-S