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                           DEPARTMENT OF COMMERCE

                               (Docket 55-93)

 Foreign-Trade Zone 148--Knoxville, TN; Application for Subzone; SmithKline
                 Beecham Pharmaceutical Plant, Bristol, TN

                         Friday, November 19, 1993

An application has been submitted to the Foreign-Trade Zones Board (the 
Board) by the Industrial Board of Blount County, Tennessee, grantee of FTZ 
148, requesting special-purpose subzone status for the pharmaceutical 
manufacturing facilities of the SmithKline Beecham Corporation (SBC) in 
Bristol, Tennessee. 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 8, 1993.

The SBC plant (40 acres, 286,599 square feet, 1 bldg.) is located at 201
Industrial Drive, Bristol (Sullivan County), some 100 miles northeast of
Knoxville. The facilities (310 employees) are used to produce both human
and animal health prescription drugs, primarily antibiotics, such as oral
semi- synthetic penicillins, including "Augmentin" and "Amoxil" human
health products and, "Amoxi-Bol" and "Amoxi-Drops" animal health products.
Currently, foreign-sourced materials account for, on average, 23 percent of
the finished product value and include the following specific ingredients:
potassium clavulanate/(amoxicillin/Avicel/Syloid) and amoxicillin. The
company also may purchase from abroad items in the following general
product categories: gums, starches, waxes, vegetable extracts, animal and
vegetable oils, glycerine, ethyl alcohol, bran, sharps and other residues,
salt, clays, gypsum, talc, oxygen-function amino compounds, antibiotics and

Zone procedures would exempt SBC 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
(duty-free to 45%, most falling in the 3.7%-6.2% range). The duty rates on
foreign- sources items range from duty-free to 49 percent, with most
falling in the 3.7- 7.4 percent range. The application indicates that zone
savings will help improve the plant's international competitiveness.

In accordance with the Board's regulations, a member of the FTZ Staff has
been designed examiner to investigate the application and report to the 

Public comment is invited from interested parties. Submisions (original and
3 copies) shall be addressed to the Board's Exectuive Secretary at the
address below. The closing period for their receipt is January 18, 1994.
Rebuttal comments in response to material submitted during the foregoing
period may be submitted during the subsequent 15-day period to 
February 2, 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, 
301 E. Church Av., 
Knoxville, TN 37915.

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 15, 1993.

John J. Da Ponte, Jr.,

Executive Secretary.

(FR Doc. 93-28540 Filed 11-18-93; 8:45 am)