[Federal Register: July 8, 1994]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 26-94]


Foreign-Trade Zone 99--Wilmington, DE; Application for Subzone
Zeneca Inc., Pharmaceuticals Plant Newark, DE

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Delaware Development Office, on behalf of the State
of Delaware, grantee of FTZ 99, requesting special-purpose subzone
status for the pharmaceutical manufacturing facility of Zeneca Inc.
(Zeneca), in Newark, Delaware, adjacent to the Wilmington Customs port
of entry 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
June 22, 1994.

    Zeneca Inc. 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.

    Zeneca's plant (2 bldgs. on 156 acres/520,700 sq. ft.) is located
at 587 Old Baltimore Pike, Newark, Delaware, some 10 miles west of
Wilmington. The facility (530 employees) is used to produce and/or
distribute a wide range of pharmaceuticals, including CEFOTAN
(antibiotic), HIBICLENS (antiseptic), DIPRIVAN
(anesthetic), TENORETIC and TENORMIN (hypertension
treatment); and NOLVADEX and ZOLADEX (anti-cancer).
The application also requests approval for the production of
MERREM (antibiotic), for which a plant expansion is currently
underway. In addition, the company is requesting to use zone procedures
for drugs currently in development that may also be produced at the
Newark facility; including ARIMIDEX, CASODEX and
TOMUDEX (anti- cancer); PALUDRINE (anti-malarial);
and SEROQUEL (schizophrenia treatment). The active
ingredients for a number of these products are or would be sourced
abroad. For those products currently produced in the U.S., foreign-
sourced materials account for some 30 percent of finished product
value.

    Zone procedures would exempt Zeneca 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 (3.7%-6.9%). The duty rates on foreign-sourced items
range from 3.7% to 8.7%. At the outset, zone savings would primarily
involve choosing the finished product duty rate for NOLVADEX
(6.3%) rather than the rate for the foreign active ingredient,
tamoxifen (6.6%). The application indicates that the savings from zone
procedures will help improve the firm'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
September 6, 1994. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period to September 21, 1994.

    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, Suite 201, 660 American
Avenue, King of Prussia, PA 19406,
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, NW.,
Washington, DC 20230.

    Dated: June 28, 1994.

John J. DaPonte, Jr.,
Executive Secretary.

[FR Doc. 94-16603 Filed 7-7-94; 8:45 am]
BILLING CODE 3510-DS-P