DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 52-84]
49 FR 47518
December 5, 1984
Foreign-Trade Zone 44, Morris County, NJ; Application for Subzone
International Flavors & Fragrances, Inc.; Hazlet, Union Beach and South
Brunswick, NJ
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Office of International Trade, State of New Jersey
Department of Commerce and Economic Development, grantee of Foreign-Trade
Zone 44, requesting special-purpose subzone status for the manufacturing
plants of International Flavors & Fragrances, Inc., located in Hazlet,
Union Beach and South Brunswick, New Jersey, adjacent to the New York
Customs port of entry. The application wa 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 November 27, 1984. The applicant is authorized to make this proposal
under Section 12:13-1 of the New Jersey Statutes Annotated.
IFF is a multinational producer of flavors and fragrances. It is
headquartered in New York City and has 36 facilities in 23 countries. Of
the top five world producers, it is the only domestic one. Sales for 1983
totaled some $470 million dollars.
The proposed subzone for IFF will involve three of the company's major
manufacturing plants: a 97-acre facility at 600 Highway 36 in Hazlet; a
200-acre facility at 800 Rose Lane in Union Beach; and a 75-acre facility
at 150 Docks Corner Road in South Brunswick. The facilities employ 1000
persons and are used to produce a variety of flavors and fragrances,
blended from numerous natural and synthetic ingredients, which are used in
soaps, detergents, cosmetics, toiletries, candles and food products. About
60% of the company's purchased raw materials are imported, including a
number of natural compounds not available in the U.S., including: Linalyl-
Acetate, TSUS 460.55-duty 18%; Benzyl-Acetate, TSUS 412.80-duty 41.2%;
Ethyl-Vanillin, TSUS 412.92-duty 25.5%; and, Phenethyl-Alcohol,TSUS
413.20-duty 25.5%. A portion of the blended products are exported.
Zone procedures will allow IFF to avoid duty payments on imported raw
materials used in its exports. On its domestic sales, IFF will be able to
take advantage of the same duty rate availalbe to importers of the
finished flavors and fragrances. The duty rate on raw materials ranges from
7 to over 40 percent, whereas the rate for most of IFF's finished flavor
products is 6 percent, and the rate for its finished perfume oil mixtures
is 6 cents per pound plus 5.8 percent. The application indicates that
foreign competition is intensifying, and that zone procedures will help
the company compete in the U.S. and internationally with production
facilities abroad, resulting in increased production in the U.S. and
increased exports.
In accordance with the Board's regulations, an examiners committee has
been appointed to investigate the application and report to the Board. The
committee consists of: John J. Da Ponte, Jr. (Chairman), Director, Foreign-
Trade Zones Staff, U.S. Department of Commerce, Washington, D.C. 20230;
Benjamin C. Jefferson, Area Director, U.S. Customs Service, New York
Region, Airport International Plaza, Room 210 A, Newark, NJ 07114; and
Colonel F.H. Griffis, District Engineer, U.S. Army Engineer District New
York, 26 Federal Plaza, New York, NY 10278.
Comments concerning the proposed subzone are invited in writing from
interested persons and organizations. They should be addressed to the
Board's Executive Secretary at the address below and postmarked on or
before January 5, 1985.
A copy of the application is available for public inspection at each of
the following locations:
U.S. Dept. of Commerce District Office,
Capitol Plaza, 8th Floor,
240 W. State Street,
Trenton, NJ 08608
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th and Pennsylvania, NW., Room 1529,
Washington, D.C. 20230)
Dated: November 29, 1984.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 84-31760 Filed 12-4-84; 8:45 am]
BILLING CODE 3510-DS -M