[Federal Register Volume 77, Number 20 (Tuesday, January 31, 2012)]
[Notices]
[Pages 4758-4759]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2073]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket T-2-2012]


Foreign-Trade Zone 59--Lincoln, Nebraska, Application for 
Temporary/Interim Manufacturing Authority, Novartis Consumer Health, 
Inc. (Pharmaceutical Product Manufacturing), Lincoln, NE

    An application has been submitted to the Executive Secretary of the 
Foreign-Trade Zones Board (the Board) by Lincoln Foreign-Trade Zone, 
Inc., grantee of FTZ 59, requesting temporary/interim manufacturing (T/
IM) authority at two sites within FTZ 59 at Novartis Consumer Health, 
Inc. (Novartis) facilities, located in Lincoln, Nebraska. The 
application was filed on January 24, 2012.
    The Novartis facilities (568 employees, capacity of 450 million 
units/year) are located within FTZ 59, at Sites 3 and 4, in Lincoln, 
Nebraska. Under T/IM procedures, Novartis has requested authority to 
produce over-the-counter (OTC) pharmaceutical products, such as 
analgesics, cough/cold medicine, antihistamines/decongestants, and 
penicillin-based antibiotics (HTSUS 3004.10, 3004.40, 3004.90--duty 
free). Foreign ingredients that would be used in production 
(representing 25% of the value of the finished products) include: 
Menthol (HTSUS 2906.11), ibuprofen (HTSUS 2916.39), sodium salicylate 
(HTSUS 2918.21), aspirin (HTSUS 2918.22), terbinafine (HTSUS 2921.49), 
diphenhydramine citrate (HTSUS 2922.19), diclofenac sodium (HTSUS 
2922.49), acetaminophen (HTSUS 2924.29), tolnaftate (HTSUS 2930.20), 
lansoprazole (HTSUS 2933.39), loratadine (HTSUS 2933.39), pyrilamine 
maleate (HTSUS 2933.39), dextromethorphan HBr (HTSUS 2933.49), 
clemastine fumarate (HTSUS 2933.99), acesulfame K (HTSUS 2934.99), 
bensalkonium chloride (HTSUS 3402.13), and microcrystalline cellulose 
(HTSUS 3912.90). Duty rates on these inputs range from duty free to 
6.5%. T/IM authority could be granted for a period of up to two years.
    FTZ procedures could exempt Novartis from customs duty payments on 
the foreign components used in export production. The company 
anticipates that some 5-10 percent of the plant's shipments will be 
exported. On its domestic sales, Novartis would be able to choose the 
duty rates during customs entry procedures that apply to the OTC 
pharmaceutical products (duty free) for the foreign inputs noted above. 
Novartis would also be exempt from duty payments on foreign materials 
that become scrap or waste during the production process.
    In accordance with the Board's regulations, Diane Finver of the FTZ 
Staff is designated examiner to evaluate and analyze the facts and 
information presented in the application and case record and to report 
findings and recommendations pursuant to Board Orders 1347 and 1480.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the following address: Office of the Executive Secretary, 
Foreign-Trade Zones Board, U.S. Department of Commerce, Room 2111, 1401 
Constitution Ave. NW., Washington, DC 20230. The closing period for 
their receipt is March 1, 2012.
    Novartis has also submitted a request to the FTZ Board for FTZ 
manufacturing authority beyond a two-year period, which may include 
additional products and components. It should be noted that the request 
for extended authority would be docketed separately and would be 
processed as a distinct proceeding. Any party wishing to submit 
comments for consideration regarding the request for extended authority 
would need to submit such comments pursuant to the separate notice that 
would be published for that request.
    A copy of the application will be available for public inspection 
at the Office of the Foreign-Trade Zones Board's Executive Secretary at 
the address listed above, and in the ``Reading Room'' section of the 
Board's Web site, which is accessible via www.trade.gov/ftz. For 
further information, contact Diane Finver at [email protected] or 
202-482-1367.


[[Page 4759]]


    Dated: January 24, 2012.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2012-2073 Filed 1-30-12; 8:45 am]
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