[Federal Register Volume 73, Number 39 (Wednesday, February 27, 2008)]
[Notices]
[Pages 10421-10422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-3709]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 8-2008]


Foreign-Trade Zone 230 Greensboro, North CarolinaApplication for 
Subzone; Banner Pharmacaps, Inc.; (Pharmaceutical and Soft Gelatin 
Capsule Manufacturing) High Point, North Carolina

    An application has been submitted to the Foreign-Trade Zones (FTZ) 
Board (the Board) by the Piedmont Triad Partnership, grantee of FTZ 
230, requesting special-purpose subzone status with manufacturing 
authority for certain prescription pharmaceutical products and soft 
gelatin capsules at the manufacturing facility of Banner Pharmacaps, 
Inc. (Banner), located in High Point, 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 February 12, 2008.
    The proposed subzone facility (51.3 acres, 2 buildings totaling 
263,000 sq. ft. approx. 40% of which is devoted to manufacturing) is 
located at 4125 Premier Drive in High Point, North Carolina.
    Banner is a contract manufacturer of soft gelatin capsules for 
prescription and over-the-counter (OTC) pharmaceuticals, and 
nutritional products. The Banner facility (500 employees) has requested 
authority to manufacture under zone procedures a variety of 
prescription pharmaceutical products that fall within HTSUS categories 
3004.50 and 3004.90 (duty-free). The initial products within these 
categories to be manufactured under FTZ procedures are a treatment for 
obesity, using active ingredient MK-0364; and, a drug for the 
prevention of organ rejection, using ISA 247. These ingredients are 
classified under HTSUS 2933.39 6.5% duty rate. Other potential products 
include treatments for obesity, migraines, organ rejection prevention, 
seizures, Parkinson's disease, viral infections, cold and cough, and 
prescription vitamin D. Banner is requesting authority to make these 
products with active ingredients that fall within the following 
categories: HTSUS 2915.90, 2921.30, 2922.49, 2933.39, 2933.79, 2935.00, 
and 3503.00. Active ingredients from these categories specifically 
cited in the application include valproic acid, amantadine, 
benzonatate, ethosuximide, cyclosporine, nimodipine, and zonisamide. 
Foreign-origin active ingredient inputs to be used in the manufacturing 
process (up to 50 percent of finished product value) have duty rates 
ranging from 3.7 percent to 6.5 percent, ad valorem. For each of the 
finished prescription pharmaceutical products (HTSUS 3004.50 and 
3004.90), the active ingredients may be combined with edible gelatin 
(HTSUS 3503.00 - 2.8 cents/kg. + 3.8/) and a non-active filler 
ingredient (HTSUS 3906.10 - 6.3/).
    Banner is also applying to produce over-the-counter pharmaceutical 
and nutritional products (HTSUS 3004.90 and 3004.50 duty-free, HTSUS 
1517.90 - 8%, and HTSUS 2106.90 - 6.4/) under zone procedures with 
requested authority limited to a single foreign-sourced input: edible 
gelatin (HTSUS 3503.00 - 2.8 cents/kg. + 3.8/).
    FTZ procedures would exempt Banner from customs duty payments on 
foreign materials used in export production. Some 5 to 10 percent of 
the plant's shipments are exported. On its domestic shipments, Banner 
could defer duty until the products are entered for consumption, and 
choose the duty-free rate that applies to the finished product for the 
foreign components used in

[[Page 10422]]

production. The company may also realize certain logistical/procedural 
savings related to zone-to zone transfers and direct delivery 
procedures, as well as savings on materials that become scrap/waste 
during manufacturing. The application indicates that FTZ procedures 
would 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 the address below. The closing period for their receipt is 
April 28, 2008. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to May 12, 2008).
    A copy of the application will be available for public inspection 
at each of the following locations: U.S. Department of Commerce Export 
Assistance Center, 342 North Elm St., Greensboro, NC 27401; and, Office 
of the Executive Secretary, Foreign-Trade Zones Board, Room 2111, 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:February 15, 2008.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E8-3709 Filed 2-26-08; 8:45 am]
BILLING CODE 3510-DS-S