[Federal Register: September 17, 2002 (Volume 67, Number 180)]
[Notices]
[Page 58584]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se02-21]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 35-2002]

Foreign-Trade Zone 61--San Juan, PR, Expansion of Facilities and
Manufacturing Authority-Subzone 61H, Baxter Healthcare Corporation
Plant (Pharmaceuticals), Guayama, PR

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by Baxter Healthcare Corporation of Puerto Rico (Baxter),
requesting to add capacity and to expand the scope of manufacturing
authority under zone procedures within Subzone 61H, at the Baxter plant
in Guayama, Puerto Rico. It was formally filed on September 10, 2002.
    Subzone 61H was approved by the Board in 1997 at a single site
located at Route 3, km. 142.5, Guayama, Puerto Rico, with authority
granted for the manufacture of pharmaceuticals including inhalation
anesthetics (Board Order 875, 62 FR 10521, 3/7/97).
    Subzone 61H (200 employees) currently consists of 23 buildings
totaling 176,000 square feet on 38 acres. Baxter is now proposing to
add 9 buildings of 33,716 sq. ft. and 1.15 acres. The proposed Subzone
61H would then consist of 32 buildings of 209,716 sq. ft. on 39.15
acres.
    The application also requests to expand the scope of authority for
manufacturing activity conducted under FTZ procedures to include
additional general categories of inputs that have recently been

approved by the Board for other pharmaceutical plants. They include
chemically pure sugars, empty capsules for pharmaceutical use, protein
concentrates, natural magnesium phosphates and carbonates, gypsum,
anhydrite and plasters, petroleum jelly, paraffin and waxes, sulfuric
acid, other inorganic acids or compounds of nonmetals, ammonia, zinc
oxide, titanium oxides, fluorides, chlorates, sulfates, salts of
oxometallic acids, radioactive chemical elements, colloidal precious
metals, compounds of rare earth metals, acyclic hydrocarbons,
derivatives of phenols or peroxides, acetals and hemiacetals,
phosphoric esters and their salts, diazo-compounds, glands for
therapeutic uses, wadding, gauze and bandages, pharmaceutical glaze,
hair preparations, lubricating preparations, albumins, prepared glues
and adhesives, catalytic preparations, diagnostic or laboratory
reagents, prepared binders, acrylic and ethylene polymers, self-
adhesive plates and sheets, other articles of vulcanized rubber,
plastic cases, cartons, boxes, printed books, brochures and similar

printed matter, carboys, bottles, and flasks, stoppers, caps, and lids,
aluminum foil, tin plates and sheets, taps, cocks and valves, and
medical instruments and appliances. Materials sourced from abroad
represent some 50-70 percent of the total value of materials used in
production.
    Zone procedures would exempt Baxter from Customs duty payments on
foreign materials used in production for export. Some 30 percent of the
plant's shipments are exported. On domestic shipments, the company
would be able to defer Customs duty payments on foreign materials, and
to choose the duty rate that applies to finished products (duty free-
9.2%) instead of the rates otherwise applicable to the foreign input
materials (duty free-20%)(noted above). The application indicates that
the savings from zone procedures would help improve Baxter'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 one of the following addresses:

    1. Submissions Via Express/Package Delivery Services: Foreign-
Trade-Zones Board, U.S. Department of Commerce, Franklin Court
Building--Suite 4100W, 1099 14th St. NW., Washington, DC 20005; or
    2. Submissions Via the U.S. Postal Service: Foreign-Trade-Zones
Board, U.S. Department of Commerce, FCB--Suite 4100W, 1401 Constitution
Ave. NW., Washington, DC 20230.
The closing period for their receipt is November 18, 2002. Rebuttal
comments in response to material submitted during the foregoing period
may be submitted during the subsequent 15-day period (to December 2,
2002).
    A copy of the application and accompanying exhibits will be
available for public inspection at the Office of the Foreign-Trade
Zones Board's Executive Secretary at address Number 1 listed above, and
at the U.S. Department of Commerce Export Assistance Center, 525 F.D.
Roosevelt Ave., Suite 905, San Juan, PR 00918.

    Dated: September 10, 2002.
Pierre V. Duy,
Acting Executive Secretary.
[FR Doc. 02-23608 Filed 9-16-02; 8:45 am]
BILLING CODE 3510-DS-P