[Federal Register: December 28, 1994]
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DEPARTMENT OF COMMERCE
[Docket 42-94]
Foreign-Trade Zone 61--San Juan, Puerto Rico; Application for
Subzone; IPR Pharmaceuticals, Inc. (Pharmaceutical Products) Guayama
and Carolina, Puerto Rico
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Commercial and Farm Credit and Development
Corporation of Puerto Rico, grantee of FTZ 61, requesting special-
purpose subzone status for the pharmaceutical manufacturing facilities
(345 employees) of IPR Pharmaceuticals, Inc. (IPR), in Guayama and
Carolina, Puerto Rico (San Juan area). 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 December 16, 1994.
IPR is a wholly-owned subsidiary of Zeneca Group PLC (U.K.), a
bioscience company comprising three global businesses--pharmaceuticals,
agrochemicals and seeds, and specialty products. Zeneca Group was
created as part of the 1993 worldwide reorganization of Imperial
Chemical Industries PLC (U.K.) along industry lines.
IPR's Guayama plant (7 bldgs./approx. 96,000 sq. ft. on 49 acres)
is located at State Road No. PR53, km. 84, Guayama, Puerto Rico, some
40 miles south of San Juan. The facility is used to produce
intermediate and bulk pharmaceuticals that are mainly used in the
manufacture of finished pharmaceutical products in the Carolina
facility. The bulk chemicals are used in cardiovasular products, and
include atenolol and lisinopril at this time.
IPR's Carolina plant (2 bldgs./approx. 116,000 sq. ft. on 5 acres)
is located at Sabana Gardens Industrial Park, Main Street, Carolina,
Puerto Rico, some 10 miles east of San Juan. The facility is used to
produce finished pharmaceuticals, primarily cardiovasular products,
including TENORMIN, TENORETIC, ZESTRIL
and ZESTORETIC. In addition, the company is requesting to use
zone procedures for drugs currently in development that may also be
produced at the Carolina facility, including ACCOLATE asthma
treatment. The active ingredients for a number of these products are or
would be sourced abroad. Foreign-sourced materials account for some 30
percent of finished product value.
Zone procedures would exempt IPR from Customs duty payments on
foreign materials used in production for export. On domestic sales, the
company would be able to choose the duty rates that apply to the
finished products (6.3%). The duty rates on foreign-sourced items range
from 6.9 percent to 13.5 percent. At the outset, zone savings would
primarily involve choosing the finished product duty rate on
TENORMIN and TENORETIC (6.3%), rather than the
rates for their foreign active ingredients: 4-hydroxiphenyl acetamide
(13.5%); ester, kaneka LP1 (8%); and chlorthalidone (6.9%). The
application indicates that the savings from zone procedures will help
improve the plants' 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
[60 days from date of publication]. Rebuttal comments in response to
material submitted during the foregoing period may be submitted during
the subsequent 15-day period (to [75 days from date of publication]).
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 District Office, Room G-55, Federal
Building, Chardon Avenue, San Juan (Hato Rey), Puerto Rico 00918
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW.,
Washington, DC 20230
Dated: December 19, 1994.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 94-31971 Filed 12-27-94; 8:45 am]
BILLING CODE 3510-DS-P