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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
 
                               [Docket No. 50-83] 
 
                                   49 FR 471 
 
                                January 4, 1984 
 
 
Foreign-Trade Zone 72, Indianapolis, Indiana; Application for Subzone Eli 
Lilly Plants, Indianapolis Area 
 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Indianapolis Airport Authority, grantee of Foreign-Trade
Zone 72, requesting special-purpose subzone status for pharmaceutical and 
chemical manufacturing plants of Eli Lilly and Company, located in 
Indianapolis, Lafayette and Clinton, Indiana, within a 75-mile radius of 
the Indianapolis Customs port of entry. 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 22, 1983. The applicant is authorized to 
make this proposal under Indiana Code 3-10-3-2. The question of adjacency 
is being reviewed by Customs.  
 
   On September 28, 1981, the Board authorized the Airport Authority to 
establish a foreign-trade zone in the Indianapolis area (Board Order 179, 
46 FR 50091, 10/9/81). The project involves 15 acres at the Indianapolis 
International Airport, including an air cargo building. 
 
   The proposed subzone is for the three Indianapolis area manufacturing 
plants of Eli Lilly a multi-national producer of human health, cosmetic 
and agricultural products with 38 plants in 17 countries and annual sales 
of close to $3 billion. The subzone's Site I will cover 220 acres at the 
company's Indianapolis plant, including the production complex in the 
White River and Kentucky Avenue area, about one-half mile south of I-70, 
an a facility at 2301 Executive Drive. Site II is at the company's 
Lafayette plant covering 449 acres on Lilly Road in West Lafayette, some 
60 miles northeast of Indianapolis. Site III is at Lilly's Clinton plant, a
747-acre facility on State Road 63 in Clinton, some 70 miles west of 
Indianapolis. The plants employ a total of 9,600 persons. 
 
   The three plants are part of an integrated process for producing 
pharmaceuticals, herbicides and animal health products. Althought the 
major proportion of the materials used in the plants' production come 
from domestic sources, certain intermediate chemicals, such as cephalexin 
disolvate and other benzenoid derivatives, are purchased from abroad. 
Because about 75 percent of the imported material is reexported, foreign 
content of the plants' products destined for the domestic market is only 
2 percent. The operations of the three plants account for the most of the 
company's $350 million in annual U.S. exports. 
 
   Zone procedures will exempt Lilly from duty payments on the material it
uses in its exports. The company will derive secondary cost savings by 
deferring duty and by taking advantage the same duty rate available to 
importers of finished products. On the imported material used by Lilly the
duty rates range from 7.9 to 17.9 percent whereas final product rates 
range from 7.4 to 12.5 percent. The savings from zone procedures, 
primarily derived from reexports, will help the company's U.S. facilities
remain competitive with similar production plants abroad. 
 
   In accordance with the Board's regulations, an examiners committee has 
been appointed to investigate the application and report to the Board. 
The committee consists of: Dennis Puccinelli (Chairman), Foreign-Trade 
Zones Staff, U.S. Department of Commerce, Washington, D.C. 20230; John 
F. Nelson, District Director, U.S. Customs Service, North Central Region, 
55 Erieview Plaza, 6th Floor, Cleveland, OH 44114; and Colonel Dwayne G. 
Lee, District Engineer, U.S. Army Engineer District Louisville, P.O. Box 
59, Louisville, KY 40201.  
 
   Comments concerning the proposed subzone are invited in writing from 
interested persons and organizations. They should be addressed to the 
Board's Executive Secretary at the address below and postmarked on or 
before February 3, 1984.  

   A copy of the application is available for public inspection at each 
of the following locations: 
 
 
U.S. Dept. of Commerce District Office, 
375 Federal Bldg./Courthouse, 
46 East Ohio Street, 
Indianapolis, OH 46204. 
 
 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 1872, 
14th and Pennsylvania, NW., 
Washington, D.C. 20230.  
 
   Dated: December 28, 1983. 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.  
[FR Doc. 84-68 Filed 1-3-84; 8:45 am] 
 
   BILLING CODE 3510-DS-M