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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                             [Docket No. 5-91]

 			Foreign-Trade Zone 7--Mayaguez,
                PR; Application for Subzones; Bristol-Meyers
     Squibb Company Pharmaceutical Plants; Barceloneta and Humacao, PR

                        Thursday, February 14, 1991

An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Puerto Rico Industrial Development Company, grantee of
FTZ 7, requesting special-purposes subzone status for two Bristol-Meyers
Squibb Company pharmaceutical manufacturing facilities in Puerto Rico. 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 January 28, 1991.

Bristol-Meyers Squibb is a leading multinational manufacturer of
pharmaceuticals, consumer products, medical devices and nutritionals.
Subzone status is proposed for two of the company's manufacturing
facilities (1,230 employees) in Puerto Rico: (1) Bristol-Meyers
Barceloneta, Inc. plant (100 acres), State Road 2, Km 56.4, Barceloneta;
and (2) Squibb Manufacturing, Inc. plant (47 acres), State Road 3, Km 77.5, 

The facilities are the principal suppliers of intermediates and finished
products for the company's pharmaceutical lines which include
cardiovascular products, anti-inflammatory compounds, antibiotics, and
anti-infectives. Many of these products contain foreign-sourced materials.
The general categories include: amino, amino, and hetercocylic compounds;
organic antibiotics; phenols; carboxylic acids; esters; ketones; and
aldehydes. The main specific components include: Cefadroxyl, Pen V,
Oxacillin, Methyl Propanoic Acid, and Fluphenazine Crude. Some of the
products are exported.

Zone procedures would exempt Bristol-Meyers Squibb from Customs duty
payments on foreign materials used in its exports. On its domestic sales,
the company will be able to choose the same duty rate that applies to
finished pharmaceutical products. The application indicates that most of
the finished products made at the plant are subject to a 3.7 percent duty
rate, whereas the rates on the ingredients used in the production of those
products range from 1.3 to 20 percent. The application indicates that zone
savings would help the plants' international competitiveness.

In accordance with the Board's regulations, an examiners committee has been
approved 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, DC 20230; 
Howard Cooperman, Regional Director of Inspection & Control, U.S. Customs 
Service, Southeast Region, 909 SE First Avenue, Miami, Florida, 33131-2595; 
and Colonel Bruce A. Malson, District Engineer, U.S. Army Engineer District 
Jacksonville, P.O. Box 4970, Jacksonville, Florida, 32232-0019.

Comments concerning the proposed subzones are invited in writing from
interested parties. They should be addressed to the Board's Executive
Secretary at the address below and postmarked on or before March 28, 1991.
A copy of the application is available for public inspection at each of the
following locations:

Office of the District Director, 
U.S. Department of Commerce, rm. G-55
Federal Bldg., Chardon Avenue, 
San Juan, Puerto Rico 00918.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, 
14th & Pennsylvania Avenue, NW., room 4213, 
Washington, DC 20230.

Dated: February 7, 1991.

John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 91-3623 Filed 2-13-91; 8:45 am]