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[Federal Register: May 10, 1995 (Volume 60, Number 90)]
[Notices]
[Page 24830-24831]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10my95-31]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 17-95]


Foreign-Trade Zone 153--City of San Diego, California,
Application for Subzone, Calbiochem-Novabiochem Corporation (Life
Science Chemicals), San Diego, CA

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the City of San Diego, California, grantee of FTZ 153,
requesting special-purpose subzone status for the life science
chemicals processing/distribution facility of Calbiochem-Novabiochem
Corporation (CNC) in San Diego, California, within the San Diego
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 April 26, 1995.
    CNC is a wholly-owned subsidiary of Calbiochem-Novabiochem
International, Inc. (U.S.), a global manufacturer and distributor of
life science fine chemicals used for clinical research and the
development of biochemical products. Life science chemicals include
human plasma proteins, enzymes, amino acids, detergents, peptides,
toxins, antibodies, immunochemicals, resins, inhibitors, buffers,
coupling reagents, and chiral synthons.
    The CNC facility (2 buildings--a 3rd one planned--totalling 134,000
sq. ft. on 7.8 acres) is located at 10394 Pacific Center Court, San
Diego, California. The facility (80 employees) is primarily used to
test and repackage life science chemicals for use by academic and
government researchers and, industrial and pharmaceutical companies.
Some of the products, accounting for about 5 percent of plant
shipments, are also involved in blending/processing activity prior to
packaging.
    The application identifies three types of products that would be
initially produced by the blending activity under zone procedures at
this time: Chromium tripicolate (duty rate--3.7%), sodium cholate
(3.1%), and amino acids (4.2%). The foreign sourced materials involved
in their manufacture are picolinic acid [[Page 24831]] (5.8%), cholic
acid (4.0%), and various packaging materials (4.8%-5.3%).
    Foreign materials (accounting for about 13-15 percent of material
value) that may also be involved in blending/processing activity
include buffers, antibodies, detergents, proteins, avidin/biotin,
toxins, conjugates, enzymes, enzyme substrates, inhibitors, growth
factors, amino acids, reagents for peptide or phosphopeptide synthesis,
and peptides. The duty rates on imported materials range from duty-free
to 18.6 percent, with most falling between 4 percent and 7 percent.
Currently, about 45 percent of merchandise is exported.
    Zone procedures would exempt CNC from Customs duty payments on
foreign materials that are reexported. The company would be able to
choose, in some cases, the finished product duty rates (3.1%-4.2%)
rather than the duty rates that would otherwise apply to the foreign
materials (duty-free to 18.6%) on the above noted items blended/
processed at the facility. The application indicates that zone
procedures will improve the plant's international competitiveness and
will help increase exports.
    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
July 10, 1995. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period (to July 24, 1995).
    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 230, 6363 Greenwich
Drive, San Diego, CA 92122
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW,
Washington, DC 20230

    Dated: May 2, 1995.
John J. Da Ponte, Jr.
Executive Secretary.
[FR Doc. 95-11527 Filed 5-9-95; 8:45 am]
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