[Federal Register Volume 72, Number 65 (Thursday, April 5, 2007)]
[Notices]
[Pages 16763-16764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6407]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 12-2007]


Foreign-Trade Zone 22 - Chicago, IL, Application for Subzone 
Status, Medline Industries, Inc., (Medical Supply Distribution and 
Processing)

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Illinois International Port District, grantee of FTZ 
22, requesting special-purpose subzone status for the medical supply 
distribution and processing (kitting) facilities of Medline Industries, 
Inc. (Medline), located in Mundelein, Waukegan, and Libertyville, 
Illinois. 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 
March 28, 2007.
    The proposed subzone would include Medline's facilities at four 
sites in Lake County, Illinois: Site 1 (one building/8.59 acres/203,500 
sq.ft.) - 1170 Northpoint Boulevard in Waukegan, Illinois, about 25 
miles north of Chicago; Site 2 (one building/9.11 acres/145,898 sq.ft.) 
- 1710 Lakeside Lane, Waukegan, located one mile south of Site 1; Site 
3 (three buildings/43.14 acres/502,876 sq.ft.) - 1200 Townline Road, 
Mundelein, some six miles southwest of Site 1; and, Site 4 (one 
building/35 acres/600,000 sq.ft.) - 1501 Harris Road, Libertyville, 
about two miles north of Site 3. The facilities are used for 
warehousing and distribution and processing (kitting) of foreign-origin 
and domestic medical supplies and equipment for the U.S. market and 
export. FTZ procedures would be utilized to support Medline's Illinois-
based distribution activity that competes with facilities located 
abroad.
    Finished medical supplies and equipment to be admitted to the 
proposed subzone for distribution would include: apparel items of 
cotton and man-made fibers (gowns, shirts, overalls, caps, baby shirts, 
scrubs, covers, socks, pajamas, slippers), woven/non-woven bed linens, 
towels, pillows, diapers, aprons, canes, walkers, wheelchairs, 
scooters, grab bars, beds, commodes, wooden bedroom furniture, folios, 
leather and man-made fiber travel bags, thermometers, vacuum pumps, 
medicaments, gauze, insecticides, fungicides, disinfectants, diagnostic 
reagents, plastic sheet/strip/foil/film, articles of plastic, paper 
products, tableware, glassware, belts, garment hangers, clippers, 
razors, lab equipment, batteries, portable lamps, alarms, medical/
surgical/diagnostic equipment and appliances, exercise/therapy 
equipment, brooms/brushes/mops, writing instruments, artworks, watches 
and clocks, watch cases, and toiletry items. The application states 
that all foreign textile and apparel products classified within textile 
import categories that are subject to quota would be admitted to the 
proposed subzone under domestic (duty-paid) status (19 CFR Sec.  
146.43) or privileged foreign status (19 CFR Sec.  146.41).
    Medline also plans to conduct certain kitting operations under FTZ 
procedures. The company is requesting authority to assemble surgical 
procedure tray kits (duty free). Imported components that could be 
included in a kit include: articles of plastic (trays, basins, medcups 
and lids, dishes, specimen containers), suction hose, holsters, rubber 
gloves, cleaning wipes, paper bags, medical/surgical appliances and/or 
instruments, gauze items, paper sheets/drapes/garments, syringes, 
woven/non-woven fabrics, surgical towels, disposable headgear and 
apparel

[[Page 16764]]

(duty rate range: free - 17.6[percnt]). The application indicates that 
Medline will admit all foreign-origin items classified within textile 
import quota categories to the proposed subzone under domestic (duty-
paid) status or in privileged foreign status when used in the kitting 
activity.
    FTZ procedures would exempt Medline from customs duty payments on 
foreign products that are re-exported. On domestic sales, duty payments 
would be deferred until the foreign merchandise is shipped from the 
facilities and entered for U.S. consumption. For its processing 
activity, Medline would be able to elect the duty rate that applies to 
finished surgical procedure tray kits (free) for the foreign-sourced 
inputs noted above. Medline would also realize significant logistical 
benefits through the use of weekly entry procedures. The application 
indicates that all of the savings from FTZ procedures would help 
improve the facilities' 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 the address below. The closing period for their receipt is 
June 4, 2007. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period to June 19, 2007.
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations: 
U.S. Department of Commerce Export Assistance Center, Suite 212, 28055 
Ashley Circle, Libertyville, Illinois 60048; and, Office of the 
Executive Secretary, Foreign-Trade Zones Board, Room 2814B, U.S. 
Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 
20230-0002. For further information, contact Pierre Duy at [email protected], or (202) 482-1378.

    Dated: March 28, 2007.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E7-6407 Filed 4-4-07; 8:45 am]
BILLING CODE 3510-DS-S