FR Doc E8-3709[Federal Register: February 27, 2008 (Volume 73, Number 39)]
[Notices]              
[Page 10421-10422]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27fe08-24]                        

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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 Diane--
Finver@ita.doc.gov 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