[Federal Register: November 13, 1998 (Volume 63, Number 219)] [Notices] [Page 63451-63452] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr13no98-44] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [Docket 49-98] Foreign-Trade Zone 1--New York, New York; Application for Subzone, Pfizer Inc. (Pharmaceutical Products), Brooklyn, New York An application has been submitted to the Foreign-Trade Zones Board (the Board) by the City of New York, New York, grantee of FTZ 1, requesting special-purpose subzone status for the pharmaceutical manufacturing plant of Pfizer Inc., (Pfizer), in Brooklyn, New York. 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 November 3, 1998. Pfizer Inc. (U.S.) is a research-based health care company which comprises three global businesses--Health Care, Consumer Health Care and Animal Health. Pfizer's Brooklyn plant (574,055 sq. ft./1 bldg. on 7.8 acres + proposed 240,000 sq. ft. warehouse expansion) is located at 630 Flushing Avenue, [[Page 63452]] Brooklyn, New York. The facility (with some 1,200 employees) produces finished pharmaceutical products, primarily Atarax, Cardura, Diflucan, Glucotrol XL, Navane, Norvasc, Unisom, Zithromax, and Zoloft. Pfizer is considering expanding production at the plant to include three new products, VIAGRA treatment for erectile dysfuntion (HTSUS 3004.90.9040), TIKOSYN anti-arrhythmia treatment (HTSUS 3004.90.9020) and eletriptan migraine treatment (HTSUS 3004.90.9040). Foreign-sourced materials will account for, on average, 70 percent of material value, and include items from the following categories: Aromatic ethers and their derivatives HTSUS 2909.30.4000 10.3% Aromatic monoamines and their derivatives, salts HTSUS 2921.49.4500 10.7% Organo-sulfur compounds HTSUS 2930.90.9050 3.7% Heterocyclic compounds with nitrogen hetero-atoms(s): HTSUS 2933.19.9000 6.8% HTSUS 2933.59.5300 6.6% HTSUS 2933.59.7000 10.7% HTSUS 2933.90.7900 10.7% HTSUS 2933.90.9000 3.7% Chemically pure sugar ethers/salts, other than sucrose HTSUS 2940.00.6000 5.8% The company may also purchase from abroad other ingredients and materials in the following general categories: gums, starches, waxes, vegetable extracts, mineral oils, sugars, empty capsules, protein concentrates, prepared animal feed, mineral products, inorganic acids, chlorides, clorates, sulfites, sulfates, phosphates, cyanides, silicates, radioactive chemicals, rare-earth metal compounds, hydroxides, hydrazine and hydroxylamine, chlorides, phosphates, carbonates, hydrocarbons, alcohols, phenols, ethers, epoxides, acetals, aldehydes, ketone function compounds, mono- and polycarboxylic acids, phosphoric esters, amine-, carboxymide, nitrile- and oxygen-function compounds, heterocyclic compounds, sulfonamides, insecticides, rodenticides, fungicides and herbicides, fertilizers, vitamins, hormones, antibiotics, gelatins, enzymes, pharmaceutical glaze, essential oils, albumins, gelatins, activated carbon, residual lyes, acrylic polymers, color lakes, soaps and detergents, various packaging and printing materials, medicaments, pharmaceutical products, and instruments and appliances used in medical sciences. Zone procedures would exempt Pfizer from Customs duty payments on foreign materials used in production for export (some 9 percent of production). On domestic sales, the company would be able to choose the duty rates that apply to the finished products (duty-free) rather than the duty rates that would otherwise apply to the foreign-sourced materials noted above (duty-free to 18.6 percent). At the outset, it is expected that zone savings would primarily involve choosing the finished product duty rate on Viagra, Tikosyn, Zeldox and eletriptan (duty-free), rather than the rates for their foreign components listed above (duty rates ranging from 3.7% to 10.7%). The application indicates that the savings from zone procedures will 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 [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 January 27, 1999). 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, Export Assistance Center, 6 World Trade Center, Rm. 635, New York, New York 10048 Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW, Washington, DC 20230 Dated: November 4, 1998. Dennis Puccinelli, Acting Executive Secretary. [FR Doc. 98-30415 Filed 11-12-98; 8:45 am] BILLING CODE 3510-DS-P