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[Federal Register: July 3, 1995 (Volume 60, Number 127)]
[Notices]
[Page 34510]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03jy95-44]

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DEPARTMENT OF COMMERCE
[Docket 33-95]


Foreign-Trade Zone 61--San Juan, Puerto Rico Application for
Subzone Ohmeda Caribe Inc./Ohmeda Pharmaceutical Manufacturing Inc.
(Pharmaceutical Products) Guayama, Puerto Rico

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Commercial and Farm Credit and Development
Corporation of Puerto Rico, grantee of FTZ 61, requesting special-
purpose subzone status for the pharmaceutical manufacturing plant (210
employees) of Ohmeda Caribe Inc./Ohmeda Pharmaceutical Manufacturing
Inc. (Ohmeda), in Guayama, Puerto Rico (San Juan area). 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 June 22, 1995.
    Ohmeda is a wholly-owned subsidiary of BOC Group plc (U.K.), which
comprises three global businesses--industrial and specialty gases,
health care products, and vacuum technology and distribution services.
    Ohmeda's Guayama plant (23 bldgs./176,000 sq. ft. on 38 acres) is
located at Route 3, KM 142.5, Guayama, Puerto Rico, some 45 miles south
of San Juan. The facility produces finished pharmaceutical products,
primarily inhalation anesthetics for hospital and critical care therapy
(e.g., FORANE, SUPRANE, and AERRANE).
    Currently, foreign-sourced materials account for, on average, 90
percent of materials value, and include the following specific items:
trifluoroethanol, chlorodifluoromethane, and a plastic valve assembly
used to administer the anesthetics. 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. Some 10 percent of production is exported.
    Zone procedures would exempt Ohmeda 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). The duty rates on foreign-sourced items
range from duty-free to 18.6 percent. At the outset, zone savings would
primarily involve choosing the finished product duty rate on
SUPRANE, FORANE and AERRANE (duty-free),
rather than the rates for their foreign components: trifluoroethanol
(HTSUS #2905.50.1000, duty rate--5.5%), chlorodifluoromethane (HTSUS
#2903.40.4010--3.7%), and a plastic valve assembly (HTSUS
#8481.80.5090--4.1%). 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
September 1, 1995. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period (to September 18, 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, Room G-55, Federal
Building, Chardon Avenue, San Juan (Hato Rey), Puerto Rico 00918
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW.,
Washington, DC 20230.

    Dated: June 26, 1995.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 95-16310 Filed 6-30-95; 8:45 am]
BILLING CODE 3510-DS-P