DEPARTMENT OF COMMERCE
110--Albuquerque, NM; Application for Expansion of Subzone
110A Adria-SP Pharmaceutical Products Plant Albuquerque, NM
Thursday, October 31, 1991
An application has been submitted to the Foreign-Trade Zones (the Board) by
the City of Albuquerque, New Mexico, grantee of FTZ 110 and FTZ Subzone
110A at the pharmaceutical manufacturing plant of Adria-SP, Inc. (formerly
Summa Medical Corporation) located in Albuquerque, New Mexico, requesting
authority to expand the subzone and the scope of manufacturing authority.
The application was submitted pursuant to the provisions of the Foreign-
Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulation of the
Board (15 CFR part 400). It was formerly filed on October 11, 1991.
Subzone 110A was approved in 1984 for the manufacture of certain
pharmaceutical products, primarily for export (Board Order 279, 49 FR
44516, 11/7/84). In 1988, Summa was purchased by Erbamont, Inc., and its
name was changed to Adria-SP, Inc.
Adria is expanding operations at its Albuquerque facility and requests an
expansion of its subzone authority. The application requests that subzone
status be expanded to encompass the entire Adria manufacturing facility
(55,000 sq. ft.) at 4272 Balloon Park Road, Albuquerque, and to include the
company's warehouse (38,000 sq. ft.) at 3700 Osuna Road. Adria is also
expanding its products lines to a wider range of pharmaceutical products,
including sterile injectable drugs and anti-cancer drugs.
The new operations will use foreign-sourced materials similar to those used
in existing production, primarily bulk active ingredients (e.g., bulk
doxorubicin hydrochloride). The value of foreign materials is currently
over 75 percent. The finished products are manufactured for both the
foreign and domestic markets. Products not approved by the FDA (Food and
Drug Administration) for sale in the United States will be produced only
for export under FDA regulations.
Zone procedures exempt Adria from Customs duty payments on foreign
materials used in production for export. On domestic sales, the company is
able to defer Customs duty payments. Duty rates for foreign materials as
well as finished products range from 3.4 to 6.3 percent, and the company
indicates that there are no inverted tariff rates involved. The application
indicates that expanded subzone authority will help improve its
In accordance with the Board's regulations, an examiners committee has been
appointed to investigate and report to the Board. The committee consists of
Dennis Puccinelli (Chairman), Foreign Trade Zones Staff, U.S. Department of
Commerce, Washington, DC 20230; Paul Rimmer, Office of Inspection and
Control, U.S. Customs Service, Southwest Region, 5850 San Felipe, Houston,
TX 77057; and Lt. Colonel Michael J. Debow, District Engineer, U.S. Army
Engineer District Albuquerque, P.O. Box 1580, Albuquerque, NM 87103.
Comments concerning the proposed expansion are invited in writing from
interested parties. They shall be addressed to the Board's Executive
Secretary at the address below and postmarked on or before December 12, 1991.
A copy of the application is available for public inspection at each of the
U.S. Department of Commerce,
District Office, Suite 1015,
505 Marquette Avenue NW.,
Albuquerque, NM 87102
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: October 24, 1991.
John J. Da Ponte, Jr.,
[FR Doc. 91-26306 Filed 10-30-91; 8:45 am]